Mandatory GST HSN Codes on Invoices w. e. f. 1 Apr 2021
A major change in GST for which the businesses have to gear up starting 1 April 2021 is mentioning of HSN codes on all the tax invoices.
The change is an extension of the amendment made in Notification 12/2017-Central Tax through Notification No. 78/2020 dated 15/12/2020.
The Mandatory requirements can be summarised as below:
Thus, it’s optional to show HSN codes in B2C invoices for turnover below 5 crores
However, for the 49 chemicals as specified in the Annexure below have to be mandatorily shown under 8 digits as per Notification no. 90/2020 dated 01st December 2020
It is also mandatory to report minimum digits as per above Table in GSTR 1
The digits of HSN codes will have to be reported based on the aggregate turnover of the preceding financial year. Thus for reporting on HSN Code for FY 21-22, the turnover for financial year 20-21 will have to considered and so on.
W.r.t exports, mentioning of 8 digits HSN on the export invoices is a requirement under Foreign Trade Policy.
All the tax invoices should contain HSN digits, description of goods and tax rates specifically for better transparency and avoid any future litigations
There is also a fine of Rs. 50,000 for committing a mistake related to this particular scenario under section 125 of the GST
Annexure – Specified Chemical Attract HSN Digit 8 in Tax Invoice
| S. No. | Chemical name | HSN Code |
| 1 | Mixture of (5-ethyl-2-methyl-2-oxido-1,3,2- dioxaphosphinan-5-yl) methyl methyl methylphosphonate (CAS RN 41203-81-0) and Bis [(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate (CAS RN42595-45-9) | 38249100 |
| 2 | Dimethyl propylphosphonate | 29313200 |
| 3 | (5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methy lmethy l methy l phosphonate | 29313600 |
| 4 | Bis[(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl ] methy l phosphonate | 29313700 |
| 5 | 2,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane 2,4,6-trioxide | 29313500 |
| 6 | Dimethyl methylphosphonate | 29313100 |
| 7 | Diethyl ethylphosphonate | 29313300 |
| 8 | Methylphosphonic acid with ( aminoiminomethyl) urea ( 1: 1) | 29313800 |
| 9 | Sodium 3-(trihydroxysilyl) propyl methylphosphonate | 29313400 |
| 10 | 2,2-Diphenyl-2-hydroxyacetic acid | 29181700 |
| 11 | 2-(N,N-Diisopropylamino) hydrochloride | 29211400 |
| 12 | 2-(N,N-Dimethylamino) ethylchloride hydrochloride | 29211200 |
| 13 | 2-(N,N-Diethylamino) ethylchloride hydrochloride | 29211300 |
| 14 | 2-(N,N-Diisopropylamino) ethanol | 29221800 |
| 15 | 2-(N,N-Diethylamino) ethanethiol | 29306000 |
| 16 | Bis (2-hydroxyethyl) sulfide | 29307000 |
| 17 | 2-(N,N-Dimethylamino) ethanethiol | 29309092 |
| 18 | Product from the reaction of Methylphosphonic acid and l,3,5-Triazine-2,4,6- triamine | As applicable |
| 19 | 3-Quinuclidinol | 29333930 |
| 20 | R-(- )-3-Quinuclidinol | 29333930 |
| 21 | 3,9-Dimethyl-2,4,8,10-tetraoxa-3,9-diphosphaspiro [5.5] undecane 3,9- dioxide | 29313900 |
| 22 | Propylphosphonic dichloride | 29313900 |
| 23 | Methylphosphonic dichloride | 29313900 |
| 24 | Diphenyl methylphosphonate | 29313900 |
| 25 | O-(3-chloropropyl)O-[4-nitro-3-(trifluoromethyl)phenyl] methylphosphonothionate | 29313900 |
| 26 | Methylphosphonic acid | 29313900 |
| 27 | Product from the reaction of methylphosphonic acid and 1,2-ethanediamine | As applicable |
| 28 | Phosphonic acid, methyl-, polyglycol ester (Exolit OP 560 TP) | 38249900 |
| 29 | Phosphonic acid, methyl-, polyglycol ester (Exolit OP 560) | 38249900 |
| 30 | Bis (polyoxyethylene) methylphosphonate | 39072090 |
| 31 | Poly(1,3-phenylene methyl phosphonate) | 39119090 |
| 32 | Dimethylmethylphosphonate, polymer with oxirane and phosphorus oxide | 38249900 |
| 33. | Carbonyl dichloride | 28121100 |
| 34. | Cyanogen chloride | 28531000 |
| 35. | Hydrogen cyanide | 28111200 |
| 36. | Trichloronitromethane | 29049100 |
| 37. | Phosphorus oxychloride | 28121200 |
| 38. | Phosphorus trichloride | 28121300 |
| 39. | Phosphorus pentachloride | 28121400 |
| 40. | Trimethyl phosphite | 29202300 |
| 41. | Triethyl phosphite | 29202400 |
| 42. | Dimethyl phosphite | 29202100 |
| 43. | Diethyl phosphite | 29202200 |
| 44. | Sulfur monochloride | 28121500 |
| 45. | Sulfur dichloride | 28121600 |
| 46. | Thionyl chloride | 28121700 |
| 47. | Ethyldiethanolamine | 29221720 |
| 48. | Methyldiethanolamine | 29221710 |
| 49. | Triethanolamine | 29221500 |
