After the recent advances in integrating additional IRPs, the Goods and Services Tax (GST) e-Invoice System is expected to undergo a significant transformation in the coming weeks.
In a few weeks, the e-invoice gateway will no longer accept 4-digit Harmonic Nomenclature System (HSN) Codes and will only accept 6-digit HSN Codes.
For GST-registered individuals to upload all B2B invoices to the Invoice Registration Portal (IRP), use the e-invoice system. An individual Invoice Reference Number (IRN), digitally signed e-invoice, and QR code is generated and provided to the user by the IRP.
It is mandatory for the assessee to specify 6-digit HSN codes according to notification No.78/2020-Central Tax dated 15th October 2020 towards their outward supplies that have AATO exceeding Rs 5cr.
The e-invoice System will stop accepting 4-digit HSN codes in a few weeks. The timeframe for preventing the creation of electronic invoices with 4-digit HSN codes will be announced shortly in this portal.
Also, the portal gave stakeholders instructions on how to modify their systems in order to comply with the notification and send 6-digit HSN codes to the e-Invoice Portal.
Important: GST E-invoicing is Mandatory for Firms If T.O More Than 5 Cr
Concerned parties may validate all of your HSN codes in the Codes site (https://einvoice1.gst.gov.in) and also test in the sandbox system (https://einv-apisandbox.nic.in).
The message in the GST e-invoice System portal said that “In case the 6-digit HSN code is not available, you may raise a ticket at Helpdesk so that it can be included in the system”.
The HSN code would be the 6-digit classification system for distinct kinds of products that would be used by India since 1986 to classify the goods for purpose of the customs and central excise. The same sort of codes would be subjected to be applicable for both the customs and GST and the codes mentioned in the customs tariff would utilize for the purpose of GST.
