The E-Way Bill System has issued a crucial advisory dated January 05, 2024, announcing a significant change in the Harmonized System of Nomenclature (HSN) code requirements for E-Way Bills. Effective from February 1, 2024, businesses are mandated to adhere to new specifications based on their Aggregate Annual Turnover (AATO).
![4/6 Digit HSN Reporting in E-Way Bill Mandatory From 1st Feb 2024 4/6 Digit HSN Reporting in E-Way Bill Mandatory From 1st Feb 2024](/img/preview/misc/20210224224752_difference.jpg?imgver=22998)
The Advisory is as follows
As per the notification No. 78/2020 –Central Tax, dated 15th October, 2020, it is necessary to provide at least 6 digit HSN code for all the B2B and Export transactions by the taxpayers whose Annual Aggregate Turnover (AATO) is more than Rs. 5 Crores. The taxpayers, with AATO less than Rs. 5 Crores, need to provide at least 4 digit HSN code.
This validation will be implemented in e-way bill System from 1st February 2024.
Hence, the taxpayers are advised to make necessary changes in their systems and enter 4 / 6 digit HSN codes while generating the e-way bills through web and API systems from 1st Feb. 2024.