In a recent development, the Central Board of Indirect Taxes and Customs (CBIC) has rescinded the GST Notification No. 20/2018-CT dated 28th March, 2018. The notification had required taxpayers to mention the harmonized system of nomenclature (HSN) or service accounting code (SAC) for goods or services in their GST returns.
The decision to rescind the notification was taken after considering the difficulties faced by taxpayers in complying with the requirement of furnishing HSN or SAC codes. The CBIC has noted that the requirement was leading to the rejection of a large number of refund claims and was causing unnecessary compliance burden on taxpayers.
The rescission of the notification is expected to provide relief to taxpayers and simplify compliance requirements under the GST regime. Taxpayers will no longer be required to mention HSN or SAC codes in their GST returns, and this requirement will not be applicable for tax invoices issued up to 31st March 2021. However, taxpayers will still be required to maintain records of HSN or SAC codes for their supplies, as these may be required for audits or other purposes.
The CBIC's decision to rescind the notification has been widely welcomed by taxpayers, who have long been demanding the simplification of compliance requirements under the GST regime. The move is expected to improve the ease of doing business in India and promote voluntary compliance by reducing the compliance burden on taxpayers.
The GST Notification No. 20/2018-CT dated 28th March, 2018 required taxpayers to mention the harmonized system of nomenclature (HSN) or service accounting code (SAC) for goods or services in their GST returns.
The notification was rescinded after considering the difficulties faced by taxpayers in complying with the requirement of furnishing HSN or SAC codes. The CBIC noted that the requirement was leading to the rejection of a large number of refund claims and was causing unnecessary compliance burden on taxpayers.
Taxpayers will no longer be required to mention HSN or SAC codes in their GST returns. This requirement will not be applicable for tax invoices issued up to 31st March 2021. However, taxpayers will still be required to maintain records of HSN or SAC codes for their supplies, as these may be required for audits or other purposes.
The rescission of the notification is expected to provide relief to taxpayers and simplify compliance requirements under the GST regime. It will reduce the compliance burden on taxpayers and promote voluntary compliance. The move is expected to improve the ease of doing business in India.
The rescission of the notification is effective from the 1st of April 2021.
Yes, taxpayers will still be required to maintain records of HSN or SAC codes for their supplies, as these may be required for audits or other purposes.
Yes, taxpayers will be able to claim refunds without mentioning HSN or SAC codes. The requirement to mention these codes in GST returns has been rescinded.
The impact of the rescission of the notification on the GST Council's revenue collection targets is not clear. The GST Council may have to explore other ways to compensate for any potential revenue loss resulting from the rescission of the notification.
No, there will be no changes to the GST return filing process, except that taxpayers will no longer be required to mention HSN or SAC codes in their returns. Taxpayers will still need to file their GST returns in a timely and accurate manner.
The CBIC may issue new notifications or circulars on this issue in the future, depending on the feedback received from taxpayers and the impact of the rescission of the notification. Taxpayers are advised to stay updated on any developments in this regard.
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