02 April 2021
Is HSN/SAC code is also mandatory in case of supply of HSD/Fuel, supply of water through water tanker (GST not applicable on tanker water) and unregistered sub-contractor & supplier and supplier under composite scheme. Kindly confirm.
09 July 2024
For various types of supplies under GST, including specific cases like supply of fuel (HSD), supply of water through water tankers (where GST is not applicable), supplies from unregistered subcontractors, and suppliers under the composition scheme, the requirement to mention HSN (Harmonized System of Nomenclature) or SAC (Services Accounting Code) codes can vary:
1. **Supply of HSD/Fuel:** - HSN code: Generally, HSN codes are not required for supplies of goods where the GST rate is not applicable or when dealing with exempt supplies. - However, if the supply is taxable, HSN codes are mandatory on invoices and in GST returns.
2. **Supply of Water through Tanker (GST not applicable):** - HSN code: Since GST is not applicable on supplies of water through tankers, there is no requirement to mention HSN codes on invoices for such transactions.
3. **Supplies from Unregistered Subcontractors:** - HSN code: If you are receiving supplies from an unregistered subcontractor, you do not need to mention HSN codes on invoices raised to the subcontractor. - However, if you are an entity registered under GST and supplying goods/services to the subcontractor, you must mention HSN/SAC codes as applicable on invoices to the subcontractor.
4. **Suppliers under Composition Scheme:** - HSN code: Taxpayers registered under the composition scheme are not required to mention HSN codes on invoices for supplies made by them. - They must mention a consolidated description of goods or services supplied, and they are also not required to issue a tax invoice. Instead, a bill of supply is issued.
### Summary: - **HSN/SAC codes are mandatory** when you are making taxable supplies (goods or services) under GST, except for specific exempt or non-GST supplies like water through tankers where GST is not applicable. - **For unregistered subcontractors:** No HSN/SAC codes are required on invoices received from them. - **For suppliers under composition scheme:** No HSN codes are required; instead, a bill of supply is issued.
Always ensure compliance with GST regulations specific to your business operations and consult with a GST expert or tax advisor for precise guidance based on your specific circumstances.
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