HSN Code on Invoice

Under GST Invoice Rules and Format, suppliers are required to mandatorily display the HSN code or SAC code of the goods or services supplied on an invoice. However, in order to make compliance easier for small and medium-sized enterprises, the requirement for disclosing HSN code on invoice has been relaxed. In this article, we look at the rules concerning the display of HSN code on the invoice in detail.

What is the HSN Code?

HSN Code acts as an internationally accepted goods classification system, used in over 200 countries. Under the HSN code system, goods have been classified into 97 different chapters. HSN code consists of 6 digits. The first two digits of the HSN codes represent the HSN code chapter. The heading of the goods is represented in the third and fourth digit of the HSN code. The sub-heading of the goods is represented in the fifth and sixth digit of the HSN code. With the HSN code acting as a universal classification for goods, the Indian Government has decided to adopt the use of HSN code for classification of goods under GST and levy of GST. Find HSN Code and GST Rate for all goods.

GST Tax Invoice Format

According to the GST rules and regulations, all suppliers of goods or services should issue a tax invoice mandatorily, when the value of supply exceeds Rs.200. The tax invoice issued by the supplier under GST should contain the following information:

Name, address and GSTIN of the supplier.
Invoice number not exceeding sixteen characters.
Date of the tax invoice.
Name, address and GSTIN of the customer, if available.
HSN code for goods or SAC code for services.
Description of goods or services.
Quantity supplied.
Total value of supply.
Taxable value of the supply.
Rate and amount of GST
Place of supply

A sample GST tax invoice is attached below:

Sample GST Invoice Click here to read on Transfer of GST Input Tax Credit