Dear All,
The Central Government vide Notification No. 78/2020 – Central Tax dated 15 October 2020 had notified the requirements to mention the 4 digit & 6 digit HSN code on the tax invoice on the basis of Aggregate Annual Turnover (‘AATO’) for the preceding financial year. Further, for reporting of HSN code in table 12 of GSTR-1, such changes are being implemented in a phased manner which are tabulated as below:
| Phases | Implemented from | Type of Taxpayers | HSN code requirement |
| Phase 1 (part I) | 1st April 2022 | AATO upto Rs. 5 Cr. | 2 digit HSN code |
| AATO more than Rs. 5 Cr. | 4 digit HSN code | ||
| Phase 1 (part II) | 1st August 2022 | AATO upto Rs. 5 Cr. | No change (2 digit HSN Code) |
| AATO more than Rs. 5 Cr. | 6 digit HSN code |
The Goods and Services Tax Network (‘GSTN’) has issued an advisory dated 22 October 2022 (attached herewith) to implement the next phase, i.e., Phase 2 w.e.f 1 November 2022, wherein the taxpayers with AATO up to Rs 5 Cr. would be required to report 4-digit HSN code (instead of 2-digit HSN code) in their GSTR-1. Further, taxpayers having AATO more than Rs. 5 Cr. would continue to report 6-digit HSN code in their GSTR-1.
To summarize, w.e.f November 1, 2022, all taxpayers with AATO up to Rs 5 Cr. would be required to report 4-digit HSN code (instead of 2-digit HSN code) in their GSTR-1