Yes, 4-digit HSN codes are mandatory in GST Table 12 of GSTR-1 for taxpayers with an Aggregate Annual Turnover (AATO) up to ₹5 crore for B2B supplies. While 4-digit HSN is required for B2B invoices, it is optional for B2C supplies, and 8-digit HSN is only mandatory for imports/exports.
Businesses with AATO (Aggregate Annual Turnover) exceeding ₹5 crore must report 6-digit HSN codes in Table 12 of GSTR-1. Businesses with AATO up to ₹5 crore must report 4-digit HSN codes.
As per the GST law, the usage of the HSN code is mandatory under certain conditions: For Small Businesses: If a business has a turnover of less than ₹5 Crore, the HSN code is not mandatory for GST returns. However, businesses are encouraged to use it for better clarity and compliance.
Phase 2 required businesses with a turnover up to ₹5 crore to use 4-digit HSN codes, while businesses above ₹5 crore maintained 6-digit codes. Manual entry continued to be allowed, with the system flagging errors but still allowing for submission of the return.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
You must register for GST if: your business has a GST turnover of $75,000 or more. your non-profit organisation has a GST turnover of $150,000 or more. you provide taxi or limousine travel (including ride-sourcing services like Uber or DiDi) regardless of your GST turnover.
Turnover under ₹1.5 crore: No requirement to use HSN codes. Turnover between ₹1.5 crore and ₹5 crore: Mandatory use of 2-digit HSN codes. Turnover over ₹5 crore: Requirement to use 4-digit HSN codes. Importers and exporters: Must use 8-digit HSN codes.
Mandate for B2C Transactions:
For B2C (Business-to-Consumer) transactions: Taxpayers with turnover above ₹5 crores must report a 4-digit HSN code for B2C supplies. If the taxpayer has a turnover of ₹5 crore or less, the reporting of HSN codes for B2C transactions remains optional.
1.5 crore but below Rs. 5 crore shall use 2 digit HSN code, >Taxpayers whose turnover is below Rs. 1.5 crore are not required to mention HSN code in their invoices.
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
Taxpayers are required to mandatorily report 4-digit HSN codes for goods & services. Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of manual HSN. However, taxpayers will be able to file GSTR-1 after manual entry.
You are no longer a small supplier and have to charge GST/HST on the supply that made you exceed $30,000 within the calendar quarter. You must register for the GST/HST. Your effective date of registration is no later than the day of the supply that made you exceed $30,000.
Section 44AD is a presumptive taxation scheme that allows taxpayers to pay tax on a presumed percentage of their annual turnover given that the annual turnover is less than Rs. 2 crores (Rs. 3 crores if 95% of receipts are through online modes).
Yes, HSN codes are required, but small businesses with turnover below ₹5 crore are exempt from using them in B2C transactions.
Notification No. 10/2023, issued on May 10, 2023, amends the earlier Notification No. 13/2020–Central Tax from March 21, 2020. The GST e-invoice requirement now applies to businesses with a turnover exceeding ₹5 crore in any financial year since 2017-18, starting from August 1, 2023.
Taxpayers with AATO up to ₹5 crore: Must report minimum 4-digit HSN codes. Taxpayers with AATO above ₹5 crore: Must report minimum 6-digit HSN codes. Manual entry: Manual typing of HSN codes is no longer allowed. Selection must be done through a dropdown only.
All regular GST-registered taxpayers with an annual turnover exceeding Rs. 2 crores are required to file GSTR-9C, which includes a reconciliation statement and certification by a Chartered Accountant (CA) or Cost Management Accountant (CMA).
4. What is the limit of HSN reporting? The limit for turnover of ₹ 5 crore states that a 6-digit HSN is compulsory for all outward supplies. Following this, if the Turnover is less than ₹ 5 crore, then a 4-digit HSN is required for B2B and optional for B2C.
Taxpayers with a turnover above Rs. 5 crores must report HSN codes at a 6-digit level. For those with a turnover up to Rs. 5 crores, reporting is at a 4-digit level for B2B supplies.
In case of B2B supplies, the HSN summary is mandatory. 👉In case of B2C supplies, as the HSN code is optional (vide Notification No.
Declaration of HSN Code for Goods and Services
These HSN codes must be declared in every tax invoice issued by the taxpayer under GST. All 8 digits of HSN code is mandatory in case of export and imports under the GST.
Working out your GST turnover
Your GST turnover is your total business income (not your profit), minus: GST included in sales to your customers. sales to associates that aren't for payment and aren't taxable. sales not connected with an enterprise you run.
Certain government services and small businesses below the GST registration threshold also qualify for exemption. It's important to note that exempt supplies differ from non-GST supplies. Exempt supplies, like healthcare or education services, are part of the GST system but are not taxed.
How to View Annual Turnover on GST Portal: A Step-by-Step Guide. Go to the GST Portal and log in using your login credentials. After logging in, you will see your dashboard with various tabs and options. Click on the 'Services' tab and then select 'Returns Dashboard' from the drop-down menu.