Relaxation is giving HSN code or accounting code of service under GST

By | May 19, 2018
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(Last Updated On: May 23, 2018)

What is relaxation is giving HSN code or accounting code of service under GST

HSN code is 8 digit code. Service Accounting Code is 6 digit code. However, in invoice, relaxation can be given by CBI&C in indicating the number of digits of HSN code for goods or the Accounting Code for services for class of registered persons – – first proviso to Rule 46 of CGST and SGST Rules, 2017.

The relaxation is as follows –

HSN Code in GST Tax Invoice

In case of taxable persons having : –

Annual Turnover in preceding year upto Rs 1.5 Crore : HSN Code is not required to be mentioned in tax Invoice.

Annual turnover in preceding year above Rs 1.50 crore but below Rs 5 crore :  HSN code at two digit level (i.e. only chapter number) is required in tax Invoice.

Annual turnover in preceding year above Rs 5 crores, HSN code at four digits level is required

Refer  Notification No. 12/2017-Central Tax dated 28-6-2017 and Notification No 5/2017 Integrated Tax dated 28-6-2017,

Note : Annual Turnover not defined under GST Act .

aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; [ Section 2(6) of CGST Act 2017 ]

“turnover in State” or “turnover in Union territory” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess;[ Section 2(6) of CGST Act 2017 ]

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