Mr. Musafir of Jharkhand, engaged in supply of medical drugs has an aggregate turnover of ₹7 Crore in the financial year 2020-2021. He issues invoices to customers without mentioning the HSN Code for goods to customers t

Mr. Musafir is liable to mention the HSN (Harmonized System of Nomenclature) Code in tax invoice. In terms of Notification No. 12/2017- Central Tax 28.6.2017, where the turnover of assessee exceeds ₹5 Crores, the number of HSN codes required to be reported on a tax invoice is 4 digits. Thus, Mr. Musafir is liable to mention 4 digits of HSN on the tax invoice as his turnover is ₹7 Crores. Alternate Answer 6(b)(i) (as per Notification No. 78/2020 - Central Tax, dated October 15, 2020): Mr. Musafir is liable to mention the HSN (Harmonized System of Nomenclature) Code in tax invoice. With effect from the April 01, 2021 the number of HSN codes required to be reported on a tax invoice is 4 digits for taxpayers with aggregate turnover up to ₹5 crores in the preceding Financial Year, and 6 digits for taxpayers with aggregate turnover exceeding ₹5 crores in the preceding Financial Year.