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HSN code mendatory or not

praveen (intermediate) (303 Points)

04 August 2021

if my turnover is up to 1.5 cr so hsn code is mandatory from 1st April 2021 or not and if I filed all gstr 1 till July return without hsn what will be rssult for it.
thank you in advance

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8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 04 August 2021

No HSN code is not required as turnover is less than 1.5 crores rupees

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prasad Nilugal (3924 Points)
Replied 04 August 2021

4 digits HSN code is mandatory in invoices and in GSTR1 from 1/4/2021 turn over up to 5 crore .

1 Like

Nidhi (Chief Accountant) (3150 Points)
Replied 04 August 2021

4 digits HSN code is mandatory in your case..

1 Like

Ankita Jain (CA in practice) (185 Points)
Replied 04 August 2021

If turnover is up to 5 Crores, Only in the case of B2C supply, HSN code is not mandatory. Otherwise, 4 digit HSN code is mandatory. Non-compliance may result in a Penalty of up to Rs.25,000/-

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 04 August 2021

The dept can impose general penalty but the chances are less I think. Hereafter ensure to include 4 digit HSN code at least in respect of B2B transactions

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praveen (intermediate) (303 Points)
Replied 04 August 2021

Thank you very much for all of experts suggestion

Imthias ahamed Kormath (910 Points)
Replied 04 August 2021

Not mandatory b2c only,but interstate and bulk quantity is mandatory otherwise tax and penalty leviable.

Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7408 Points)
Replied 04 August 2021

The mandatory reporting of HSN codes was introduced while preparing the GSTR-1 return from 1st April 2021. As per the revised declaration, taxpayers with an annual aggregate turnover of more than Rs. 5 crore must mandatorily declare six digits of the HSN code on all the tax invoices.