The E-Way Bill System has issued a crucial advisory dated January 05, 2024, announcing a significant change in the Harmonized System of Nomenclature (HSN) code requirements for E-Way Bills. Effective from February 1, 2024, businesses are mandated to adhere to new specifications based on their Aggregate Annual Turnover (AATO).

The Advisory is as follows

As per the notification No. 78/2020 –Central Tax, dated 15th October, 2020, it is necessary to provide at least 6 digit HSN code for all the B2B and Export transactions by the taxpayers whose Annual Aggregate Turnover (AATO) is more than Rs. 5 Crores. The taxpayers, with AATO less than Rs. 5 Crores, need to provide at least 4 digit HSN code.

This validation will be implemented in e-way bill System from 1st February 2024.

Hence, the taxpayers are advised to make necessary changes in their systems and enter 4 / 6 digit HSN codes while generating the e-way bills through web and API systems from 1st Feb. 2024.

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