Arjuna (Fictional Character): Krishna, what is reporting requirement of Inward and Outward Supplies HSN Code in GSTR-9?

Krishna (Fictional Character): Arjuna, From FY 2021-22 onwards, it shall be mandatory to report HSN Summary for Outward Supplies in Table 17 at 6 digits for taxpayers having annual turnover in preceding FY above Rs. 5 Cr. and at 4 digits for all B2B supplies for taxpayers having annual turnover in the preceding FY up to Rs. 5 Cr. The registered person shall have an option to not fill HSN Summary for Inward Supplies in Table 18.

Arjuna (Fictional Character): Krishna, what issues might be faced by the taxpayer while reporting HSN summary of outward supplies in GSTR-9?

Krishna (Fictional Character): Arjuna, following are the common issues faced by the taxpayers and illustrative suggestions for the same:
Sr. No. Issues Illustrative Suggestions


Is HSN code required for Exempt/Nil/Non-GST supply HSN summary is required for taxable as well as exempted supplies (for e.g., bank interest, dividend, etc.)
2. Is it necessary to provide HSN summary for B2C supply T/O > Rs. 5 cr. – Mandatory to report HSN for all transactions. T/O < Rs.5 cr. – B2B is mandatory and B2C transactions are optional. However, to reconcile with total T/O as per GSTR-9 it is recommended to give HSN summary for B2C.
3. If someone files GSTR-9 voluntarily even if T/O < 2 cr., then is it necessary to provide HSN summary for B2B and B2C supply? If taxpayer is filing GSTR-9 on voluntary basis, it is required to report HSN Summary of B2B Outward Supplies.
4. Whether gross outward supplies or net outward supplies (after effect of CN) to be reported? It is advisable to report net outward supplies in Table 17 so it will match with total T/O shown after Table 13 of annual return.
5. If T/O < Rs. 5 cr., 4-digit HSN Code is to be mentioned but while filling GSTR-9 no option is coming for 4-digit HSN Code, then what to do? It is advised to report 6-digit HSN codes in GSTR-9 as technical errors are reported while uploading 4-digit HSN Code on GST portal.
6. If CN is issued for previous FY and there is no other supply for the same HSN, what should be done as the portal is not accepting negative amount for the same HSN? In such cases, reconciliation of HSN Summary with the books needs to be maintained as the Table 17 will report only positive figures.
7. GST Portal is showing error for tax amount difference while uploading HSN Summary i.e., tax rate multiplied by taxable value even if the difference is in decimal It is advisable to calculate accurate tax amount by multiplying taxable value by tax rate.
8. In few cases HSN code and tax rate is same, but quantity mentioned is kgs/ltrs and in some cases nos in invoices, how to report? While reporting in GSTR-9 in Table 17 separate line item for quantity i.e., kgs/ltrs and nos needs to be mentioned with respective taxable value, tax rate and same HSN Code.
9. What is reporting requirement of UQC in HSN for Outward Supplies in GSTR-9? UQC details to be furnished only for supply of goods. Quantity is to be reported net of returns.
10. What are the implications of improper reporting of HSN and SAC codes HSN and SAC codes are linked to GST rates. A taxpayer will have to select correct HSN code and applicable rate. Also, for claiming ITC, the invoice should be complete in all respects as mentioned in Section 31 which requires to mention HSN for goods and services on the invoice. So, if an assessee furnishes the incorrect HSN Code, this will lead to varying tax liability and impact the buyer’s claim of input tax credit.

Arjuna (Fictional Character): Krishna, what are some general tips that should be followed by taxpayer to avoid difficulty in reporting HSN Summary?

Krishna (Fictional Character): Arjuna, to avoid any difficulty in reporting HSN Summary,

1) The taxpayer should check whether HSN mentioned in GST registration resembles with HSN in GSTR 9/ GSTR1.

2) Also, while uploading GSTR-1 for FY 22-23, HSN should be 6 digit to avoid any difficulty in uploading HSN Summary in GSTR-9 for FY 22-23.

3) If GST rates are different and HSN code is same, then care should be taken to report correct taxable value and tax rate.

Arjuna (Fictional Character): Krishna, what should one learn from this?

Krishna (Fictional Character): Arjuna, As the due date comes near, the taxpayer may face some errors as this is the first year of reporting of HSN Summary for outward supplies. The taxpayer should make sure that GSTR-9 is filed as early as possible to avoid last minute rush and to avoid the late fees and interest.

Author Bio

Qualification: CA in Practice
Company: R.B. Sharma and Co
Location: Aurangabad, Maharashtra, India
Member Since: 27 Jan 2018 | Total Posts: 432
1. Central Council Member of ICAI. 2. Vice-Chairman of WIRC of ICAI for the period 2015-2021. 3. Youngest Chairman of Aurangabad Branch of WIRC of ICAI in 2002. 4. Author of Popular Tax articles series based on Krishna and Arjuna conversation i.e “KARNEETI” published in Lokmat on every View Full Profile

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  1. Samiksha Palkar says:

    If i not mentioned HSN Code in Monthly Returns of GSTR 1 then is there is the option to resolve this problrm by filling Annual GSTR 9

  2. vswami says:

    Q “If someone files GSTR-9 voluntarily even if T/O < 2 cr., then is it necessary to provide HSN summary for B2B and B2C supply?"

    ANS If taxpayer is filing GSTR-9 on voluntary basis, it is required to report HSN Summary of B2B Outward Supplies."

    "B2C" – May be, the concept, as is imagined, will have meaning and be remotely of relevance, only rarely in a case of 'supply of 'services'; such as, a professional who from out of his 'stored knowledge' so 'provides' 'services' and attracts levy under "RCM"
    Any independent thoughts to spare and share ?!

  3. vswami says:

    To ADD: Nonetheless, NOT TO FORGET, – to go by the scheme of things as underlined /impliedly or otherwise by the fundamental objective of the GST Law, predominantly, such procedural requirements , in terms apply, provided there is a, –

    a) “transaction”; and

    b) that involves ‘supply’ of services or goods in the ‘course of’ and /or in further of “BUSINESS” ?!

  4. vswami says:

    Instant (:
    Not TO READ in isolation ; BUT together with >GSTR 9-Annual Return filing details required under each table
    ^A Surprise but an intelligent Checkmate /TRAP to detect Mismatch !?
    Differently viewed, however, that seems to be INTENDED to serve the purpose of a Pain Balm for the REVENUE’ s headache- !?! – Explore >>>

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February 2024