Taxation - Income TaxQuestion 5586 of 146
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16. Alpha Way Industries, a registered person dealing in supply of taxable goods all over India, having an aggregate turnover of ` 6.75 Crore in the preceding Financial Year, is required to issue Tax Invoice with HSN Code of:

Options

A4 digits for goods supplied to registered persons only (B2B)
B4 digits for goods supplied to registered as well as unregistered persons (B2B and B2C)
C6 digits for goods supplied to registered persons only (B2B)
D6 digits for goods supplied to registered as well as unregistered persons (B2B and B2C) Answer Key MCQ No. Correct Option
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Correct Answer

Option D6 digits for goods supplied to registered as well as unregistered persons (B2B and B2C) Answer Key MCQ No. Correct Option

All Options:

  • A4 digits for goods supplied to registered persons only (B2B)
  • B4 digits for goods supplied to registered as well as unregistered persons (B2B and B2C)
  • C6 digits for goods supplied to registered persons only (B2B)
  • D6 digits for goods supplied to registered as well as unregistered persons (B2B and B2C) Answer Key MCQ No. Correct Option

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Detailed Solution & Explanation

As per Notification No. 78/2020-Central Tax dated 15.10.2020, a registered person whose aggregate turnover in the preceding Financial Year exceeds 5 Crores\displaystyle ₹5 \text{ Crores} is mandatorily required to mention a 6-digit HSN code on tax invoices for both supplies made to registered persons (B2B) and unregistered persons (B2C).
Since Alpha Way Industries had an aggregate turnover of 6.75 Crores\displaystyle ₹6.75 \text{ Crores} (which is greater than 5 Crores\displaystyle ₹5 \text{ Crores}) in the preceding Financial Year, it is required to issue tax invoices with a 6-digit HSN code for both B2B and B2C supplies.

Hence, **Option D** is the correct answer.

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