The electronic invoicing method for the Goods and Services Tax (GST) has been amended to make it mandatory for taxpayers with an Annual Aggregate Turnover (AATO) of Rs. 5 crores and overhead to include a minimum 6-digit Harmonized System of Nomenclature (HSN) code in their electronic invoices. This update will take effect starting from December 15, 2023.
The update specifies that starting from December 15, 2023, taxpayers with an AATO of 5Cr and above must include a minimum 6-digit HSN code in their electronic invoices.
According to the recent update in the GST E-way bill system on September 05, 2023, businesses with an Annual Aggregate Turnover (AATO) exceeding Rs. 5 Crore are obliged to incorporate a minimum 6-digit HSN code in both their electronic invoices and e-Waybills, as per the regulations stated in Notification No. 78/2020 dated October 15, 2020. Conversely, businesses falling below this turnover threshold should include a minimum 4-digit HSN code in their electronic invoices and GST E-Way Bills.
The e-invoice System is specifically designed for GST-registered individuals to upload their business-to-business (B2B) invoices to the Invoice Registration Portal (IRP). Through the IRP, users receive a unique Invoice Reference Number (IRN), digitally signed e-invoice, and QR code.
As per the guidelines issued by the GST Authority, e-invoice portals are required to report invoices within 30 days from the date of the invoice. This regulation applies to taxpayers with an AATO equal to or exceeding 100 crores, commencing from November 1, 2023.
