Eventually, 4-Digit HSN codes to be Banned from use In GST E-Invoice. After the recent addition of more IRPs, the Goods and Services Tax (GST) e-Invoice System is about to go through a big change in the coming weeks. In a few weeks, the e-invoice portal will stop accepting 4-digit Harmonic Nomenclature System (HSN) Codes and only accept 6-digit HSN Codes.
People who are registered for GST can use the e-invoice system to send all B2B invoices to the Invoice Registration Portal (IRP). The IRP makes a unique Invoice Reference Number (IRN), an e-invoice with HSN codes that has been digitally signed, and a QR code and sends them to the user.
According to Notification No. 78/2020—Central Tax, dated October 15, 2020, taxpayers are required to include 6-digit HSN Codes for all outgoing shipments with an AATO of more than RS 5 Crores.
After a few weeks, the e-invoice System won’t be able to take 4-digit HSN codes. The date for stopping e-invoices from being made with a 4-digit HSN code will be posted soon on this portal. The Portal also told the people involved to make the changes to their systems that were needed to send 6-digit HSN codes to the e-Invoice Portal and follow the notification.
All of your HSN codes can be checked in the portal (https://einvoice1.gst.gov.in) under “Codes,” and you can also test them in the sandbox system (https://einv-apisandbox.nic.in).
“If the 6-digit HSN code is not available, you can raise a ticket at Helpdesk so that it can be added to the system,” the message in the GST e-Invoice Portal said. India has used the HSN code since 1986 to classify goods for Customs and Central Excise. It is a six-digit code that is used to group different kinds of products. These codes can be used for both Customs and GST, and the codes in the Customs tariff can also be used for GST.