Tax alert – advisory on E-way bills and functionalities for GTA taxpayers

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 follow: -

1. 6 digit HSN code is mandatory for all the B2B and Export transactions by the taxpayers whose AATO is more than Rs. 5 Crores.
2. 4 digit HSN code is mandatory for the taxpayers with AATO less than Rs. 5 Crores

We have attached a copy of the relevant Advisories for your kind reference and will keep you posted for any further updates in this regard. In case you require any clarification, please feel free to connect.

The complete text of the relevant advisory can be accessed from the below link:

EWB-HSN-Advisory.pdf (ewaybillgst.gov.in)

For efficient Goods and Services Tax (GST) compliance by the GTA taxpayers, essential functionalities are available on the portal as on 01.01.2024.

The following Functionalities are made available on the portal for the GTA Taxpayers:

1. Filing of Online Declaration in Annexure V and Annexure VI for the existing GTA Taxpayers,
2. Filing of Online Declaration in Annexure V for the Newly registered GTA Taxpayers,
3. Uploading manually filed Annexure V Form for the FY 2023-24 on the portal

The option exercised by GTA for payment of GST in forward charge mechanism on the services supplied by it during a Financial Year shall be deemed to have been exercised for the next and future financial years unless the GTA files a declaration in Annexure VI to revert back to reverse charge mechanism.

However, the GTAs who filed declaration for the FY 2024-25 on the portal for the period from 27.07.2023 till 22-08-2023 has been considered as filed and valid. Those taxpayers are requested that they need not file declaration in Annexure V Form for the subsequent FYs if they wish to continue their option for pay GST on Forward charge mechanism.

The complete text of the relevant advisory can be accessed from the below link:

https://www.gst.gov.in/newsandupdates/read/620