What new this time in

GST “Gudi padawa?

CA Umesh Sharma
KEY POINTS :-

New Beginning to the GST this time.

What is HSN Code and SAC Code?

The limit of Turnover for HSN Code and SAC

specification on Tax Invoice

CA Umesh Sharma
 Arjun (Fictional Character): Krishan, on
day of Gudi Padawa new beginning are
made of many things, accordingly what
new in GST this time?

Krishna (Fictional Character): Arjuna, this

time in GST new things are in Tax Invoice.
With effect from the 1st April, 2021, All GST
taxpayers will have to furnish HSN
(Harmonized System of Nomenclature
Code), or Service Accounting Code (SAC) in
their Tax Invoices. Further if turnover in PYs
is more than 50 Cr then E-invoicing is
mandatory.

CA Umesh Sharma
 Arjun (Fictional Character): What is HSN
Code and SAC Code?

Krishna (Fictional Character): Arjuna, HSN

code stands for “Harmonized System of
Nomenclature” for Goods. This system has
been introduced for the systematic
classification of goods all over the world. SAC
codes (Full form: Services Accounting Code)
are codes issued by CBEC to uniformly
classify each service under GST. Thus, the
issues of rate of tax and classification may be
digitalized and hence Invoicing errors may be
reduced to a some extend.

CA Umesh Sharma
 Arjun (Fictional Character): Krishna, What
is the limit of Turnover for HSN Code and
SAC specification on Tax Invoice?

Krishna (Fictional Character): Arjuna, 4-digit

HSN code: for aggregate Turnover up to 5 crores
in PY and 6 digit HSN code: for more than INR 5
crores. For aggregate Turnover in the preceding
Financial Year 20-21 is to be considered.
Further, 4- digits HSN Code is optional in respect
of supplies made to unregistered persons i.e.,
B2C supplies for a registered person having
aggregate turnover upto INR 5 crores in the
previous financial year.

CA Umesh Sharma
 Arjun (Fictional Character): Krishna, what
are the goods and services covered in the
HSN code and SAC Code and where we
can check?

Krishna (Fictional Character): Arjuna, you can

get links of accurate HSN Codes for goods
and SAC codes for services from below:

Link to Access HSN code and SAC code for

Goods and Services:

Exempt Service Good

Services

CA Umesh Sharma
 Arjuna (Fictional Character): Krishna,
what one should learn from this?

Krishna (Fictional Character): Arjuna, with

effect from the 1st April, 2021, GST taxpayers will
have to furnish HSN (Harmonized System of
Nomenclature Code), or Service Accounting
Code (SAC) in their invoices, as per the revised
requirement. Otherwise penalty of RS.25000
may be levied for incorrect issue of Tax Invoices
on the taxpayers.

CA Umesh Sharma
Disclaimer: This Karneeti tax update is only for the purpose of information and does
not constitute or purport to be advice or opinion in any manner. The information
provided is not intended to create an advisor-client relationship and is not for
advertising or soliciting. The author does not intend in any manner to solicit work
through these Tax update articles. The articles are only to share information based on
recent developments and regulatory changes. The author is not responsible for any
error or mistake or omission in this article or for any action taken or not taken based
on the contents of this article. Business decisions are best taken in close consultation
with the advisors. A small attempt is made to update all on GST. This is for guidance
purposes only. No legal action against the writer or presenter can be taken. Refer to
relevant provisions and facts of the case.

CA Umesh Sharma