• Notification Date: 10-03-2023
• Notification No: N/A

4 Digit HSN Codes shall be Blocked Soon in GST e-Invoic

The e-Invoice System of Goods and Services Tax (GST) is set to undergo a major change in the following weeks, after the recent developments of including more IRPs. Within a few weeks, the e-invoice portal will stop accepting 4-digit Harmonic Nomenclature System (HSN) Code and accept only 6-digit HSN Codes. The e-invoice System is for GST registered persons for uploading all the B2B invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user. As per the Notification No.78/2020 — Central Tax dated 15th October 2020, it is mandatory for the taxpayers to mention 6-digit HSN Codes for their outward supplies having AATO more than RS 5 Crores. 

After a few weeks, the e-invoice System will not accept 4-digit HSN codes. The date for blocking e-invoice generation having HSN code as 4-digits will be intimated shortly in this portal. The Portal further instructed the stakeholders to make necessary changes in your system to report 6-digit HSN codes to e-Invoice Portal and comply with the notification. Concerned parties may verify all your HSN codes in the (https://einvoice1.gst.gov.in) portal under Codes and test in the sandbox system. 

“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 message in the GST e-Invoice Portal further stated. The HSN code is a six-digit classification system for different types of products, which has been utilized by India since 1986 to categorize goods for Customs and Central Excise purposes. These codes are applicable to both Customs and GST, and the codes specified in the Customs tariff are also used for GST purposes.