Effective from December 15, 2023, businesses with an Aggregate Annual Turnover (AATO) exceeding Rs. 5 Crores must use a minimum of 6-digit HSN code in e-Invoices. Businesses with AATO less than or equal to Rs. 5 Crores must use a 4-digit HSN code for B2B invoices; optional for B2C invoices.
Example:
- Previously: E-Invoice listed product as “Smartphone” with a generic tax code.
- Now: Must specify a detailed 6-digit HSN code, e.g., “Mobile Phone with Touch Screen Display,” including specific features like camera resolution, storage capacity, and processor type.
Source: tallysolutions.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
