This is Ravi Verma, In this session, I will let you know about the HSN code.
What is HSN Code? And why HSN code is mandatory while filing the GSTR-1?
The full name of the HSN code is Harmonized System of Nomenclature. HSN code is the most important thing while filing the GSTR-1 because our government has created a group for knowing all the services, goods, and supplies.
And in our language, we are telling the HSN code of this group. because many types of goods and services are there in India and outside of India that’s why the government has created a group and given a unique code for all the goods, supplies, and services, due to the unique code we can easily find out any types of goods and services whatever suppliers have supplied to the customers.
New Update on the HSN code in the GST.
- From the 1st Nov 2022 if any suppliers whose annual aggregate turnover is up to 5 crores. he is required to enter the 4 digits of the HSN code while filling out the GSTR-1. except for B2C supplies otherwise, you have to enter the HSN code of your all supplies at the time of GSTR-1 filling.
- Taxpayers will now have to mandatory report a 6-digit HSN code of all the supplies whose annual aggregate turnover is more than 5 crores. No change in other conditions.