HSN & SAC Code Are Mandatory In Invoice And Form GSTR-1 W.E.F.01.04.2021
Brief Notes on mandatory mentioning of HSN & SAC Code in Invoice and Form GSTr-1 as per amendments to GST Law, 2017 w.e.f.01.04.2021.
Dear Professional Colleagues, Good Day to you. I have gone through recent changes about mandatory to mention HSN & SAC Code in Tax Invoice and furnishing inward & outward details at box no 12 of GSTR-1 w.e.f.01.04.2021. Some of the professionals are having confusion about mentioning of HSN & SAC code in Tax Invoice and Furnishing inward & outward details in GSTR-1. How many Digit of HSN & SAC Codes are to mention in the Tax invoice & GSTR-1 of GST Law, 2017. Is there any threshold limit to mention HSN &SAC Codes for supply of Goods and Services from 01.04.2021? So, here with I am trying to clarify at my best of Knowledge. Please refer and provide your suggestions to my mail i.d. [email protected] or what’s app No.9848099490.
As per the below mentioned notifications CBIC has clarified who are liable to mentioned HSN & SAC Code on Tax Invoice and Form GSTR-1 w.e.f..1.4.2021,
| S.NO. | Notification No. | Year | Date of Issue. |
| 1 | Notification No. 12/2027- Central Tax | 2017 | 28.06.2017 |
| 2 | Notification No. 78/2020- Central Tax | 2020 | 15.10.2020 |
| 3 | Notification No. 82/2020- Central Tax | 2020 | 10.11.2020 |
| 4 | Notification No. 90/2020- Central Tax | 2020 | 01.12.2020 |
| 5 | Notification No. 12/2021- Central Tax | 2021 | 01.05.2021 |
On the recommendations of the GST Council the Government of India , has given the above notification from time to time through CBIC. The CBIC has mentioned in such Notifications that they have bifurcated into 2 types taxpayers based on Aggregate Turnover of Previous Financial Year.
As per Notification No.82/2020 dated.10-11-2020, In FORM GSTR-1, in the Instructions, after serial number 17, the following instruction shall be inserted, namely:- “18. It will be mandatory to specify the number of digits of HSN code for goods or services that a class of registered persons shall be required to mention as may be specified in the notification issued from time to time under proviso to rule 46 of the said rules.
As per Notification No.12/2021 –Central Tax , dt.1.5.2021 CBIC has given notification for extension the date to furnish the details as per amendment to GSTR-1 for the month of 4/2021 till 26.05.2021.
Catergory-1 “ The tax payers is having Aggregate Turnover is more than Rs.5 Cr in the previous Financial Year and
Category -2” The tax payers is having Aggregate Turnover is below Rs.5 Cr in the previous Financial Year.
Category-1: They have to mention HSN Code for supply of Goods to B2B ,B2C and unregistered dealers as below Table: (Aggregate Turnover More Than Rs.5 Cr in the previous Financial Year)
A). Supply of Goods:
| S.NO. | Supply of Goods to whom | Digits of HSN Code |
| 1 | Supply made to registered persons B2B | 6 |
| 2 | Supply of goods to Consumers or Composition dealers | 6 |
| 3 | Supply of Goods to Un – Registered Dealers | 6 |
B). Supply of Services:
| S.NO. | Supply of Service to whom | Digits of SAC Code |
| 1 | Supply made to registered persons B2B | 6 |
| 2 | Supply to Consumers or Composition dealers B2C | 6 |
| 3 | Supply of Services to Un – Registered Dealers | 6 |
C). Supply of Specified Goods as per Notification No.90/2020 –Central Tax- Date.01.12.2020:
| 1 | Specified Chemicals as per N.No.90/2020 | 8 Digits |
D). Supply of Goods and Services to Registered Person (Export):
| S.No. | Supply of Goods and Services | HSN &SAC Codes |
| 1 | Supply of Goods | 8 |
| 2 | Supply of Services | 6 |
| 3 | Supply of Specified Chemical as per N.No.90/2020 | 8 |
Category-II: They have to mention HSN Code for supply of Goods to B2B ,B2C and unregistered dealers as below Table: (Aggregate Turnover Below Rs.5 Cr in the previous Financial Year).
A). Supply of Goods:
| S.NO. | Supply of Goods to whom | Digits of HSN Code |
| 1 | Supply made to registered persons B2B | 4 |
| 2 | Supply of goods to Consumers or Composition dealers B2C | Optional |
| 3 | Supply of Goods to Un – Registered Dealers | NIL |
B). Supply of Services:
| S.NO. | Supply of Service to whom | Digits of SAC Code |
| 1 | Supply made to registered persons B2B | 4 |
| 2 | Supply to Consumers or Composition dealers B2C | Optional |
| 3 | Supply of Services to Un – Registered Dealers | NIL |
C). Supply of Specified Goods as per Notification No.90/2020 –Central Tax- Date.01.12.2020:
| 1 | Specified Chemicals as per N.No.90/2020 | 8 Digits |
D). Supply of Goods and Services to Registered Person (Export):
| S.No. | Supply of Goods and Services | HSN &SAC Codes |
| 1 | Supply of Goods | 8 |
| 2 | Supply of Services | 6 |
| 3 | Supply of Specified Chemical as per N.No.90/2020 | 8 |
How To Search an Appropriate HSN or SAC Code :
> Step-1. Visit site https:///www.gst.gov.in/;
> Step-2. Click on “Services” icon;
> Step-3 . Further Click on “ User Services”’
> Step-4. Select “ search HSN/ Service classification code’
> Step- 5. On select HSN / Service Classification Code”. Two options HSN and Service Classification Code would be displayed. OR
> GSTN has provided HSN & SAC Codes in Excel sheet in Common Portal from 12.6.2021.
PENALTY CLAUSE:
As per Section 125 if the tax payer is not follow the amendments , they are liable to pay PENALTY of Rs.25,000/0 under CGST and Rs.25,000/- under SGST and Rs.50,000/- under IGST for each mistake under CGST Act,2017.
Author Bio
I am a contractor of all types of work, I take contract and get it done by specialized person.
So is it compulsory to put HSN as I only give service of work. And my work differs e.g. carpenter work, fabrication work glass work, interior work.
Kindly please guide me with this.
Total sale value is 100+GST, Advance adjustment is 5+GST.
In filling of GSTR1, under HSN wise outward supply which figure to be filled in basic amount. invoice basic value 100 or basic-advance adjustment (100-5). Please clear..?
is HSN mandatory for QRMP scheme
Dear sir
1. we have export services without payment of tax occurred during the year. Still required to be mentioned SAC code in table no 17?
2. We had domestic supplies during the year FY2020-21 but reported in FY 2021-22 G-1 and G-3B returns. When it comes to the SAC code do we require to report sac code for domestic supplies in table not ? kindly advise me
is it mandatory to upload hsn summary for 10lakh below sales if not done department will take any actions on that
Dear Sir, Thank you to refer my article. With regards to your query. If the aggregate Turnover below Rs.10 Lakhs, if you are having GST registration, you have to mentioned 4 digits HSN Code is mandatory. w.e.f.01.04.2021. If you are not mentioned there is a penalty as per provisions of the CGST Act,2017.
Sir please help. Is is necessary to mention HSN code on GSTR 1. My sales are below 20 lakhs during the year. And if I have not mentioned HSN code from April to December 2021 what I can do to rectify the same?
Dear sir/Madam. Thank you to refer my mail. It is optional to mention HSN CODE to supply to B2C by whose aggregate turnover below Rs.5 Cr. I have sent mail to you with notes. Pl check your in box.
Hi sir,
I have same doubt. I am selling goods to registered as well as un-registered dealer/consumers. And I am a regular taxpayer category and my aggregate turnover in preceding FY. 2021-22 is below Rs. 1.5 cr. Do I need to report HSN details in GSTR 1. Please clarify with notification.
If the annual aggregate turnover is below rs 1.5 crore and you have regular gstin and are engaged in B2B as well as B2C in this case you can mention only 4 digit hsn code on B2B supply whereas Mentioninghsn on B2C is optional.
Sir, is it applicable to file in HSN summary in gstr-1 because my yearly turnover is under 10 lakhs ?? or else I have to file the HSN items wise details in quarterly return. Please help me on this regard
Dear Sir, Thank you to refer my article. With regards to your query, It is mandatory to mentioned HSN codes as per notification w.e.f.1.4.2021. In this regard I have dent mail . kindly check your inbox.
is it compulsory to give Hsn wise details while filling gstr1 for a business with 30 lakhs turnover? I have quarterly return, so shall I show in the quarterly return?
Sir, is it applicable to file in HSN GST portal because of My monthly turnover of 10lac ?? or else I have to file the HSN items wise details in the portal Please help me on this regard
Dear Sir, I have send mail to your mail i.d. in this regard, and also send my articles on “Guidance Notes on HSN Codes mandatory to report in Form GSTR-1 we.f.1.4.2021.
Sir, I haven’t filled any HSN summaries till date and I do have B2B supplies – what do I do in this case? Should I fill it in the upcoming month’s filing?
Dear Sir, Thank you to refer my article. With regards to your query, It is mandatory to fill HSN Code w.e.f.1.4.2021 as per notification. There is no provision to rectify now such returns. You have to fill form onwards.
Sir,
If we forgot to upload HSN Code in previous month(s), Can we upload the left out sale (HSN Summary) in the upcoming gst return ??
Dear Sir, I have send mail to your mail i.d. in this regard, and also send my articles on “Guidance Notes on HSN Codes mandatory to report in Form GSTR-1 we.f.1.4.2021.
Sir,
If we forgot to upload HSN Code in this month.Can we adjust it in next month?if not what are the consequences and measures to be taken to rectify it.please do reply..
Dear Sir/Madam. Thank you to refer my article. With regards to your query, it is mandatory to fill HSN codes in GSTR-1. There is no provision to rectify such returns now. You have to fill now onwards. If not mentioned you are liable to pay penalty as per GST Provisions.
Sir, I have already filed GSTR1 but there has not added table no. 12 (HSN wise summary of outward supply) now which are added of this ?
Dear Sir, Good Morning. Thank you to refer the above article. regarding your query, there is no modification facilitation to GSTR-1. If any audit officer will raise question why you are not mention, you have to explain facts. Further your have refer my article . “Guidance Notes On Mentioning Of HSN & SAC Codes” in Taxguru for more clarity.
How HSN table be filled for dealers if exempted goods filling details of supply in table 8 as exempted nil rated. They issue bill of supply and not tax invoice. There no option of nil exempt rate . Zero rate in gst is for export . It seems that it is tax invoices filled in table 4 to7 . Total invoice value column auto filled shows NA as does not take figures from table 8.
Dear Sir, Thank you to refer my article. Regarding your query, kindly refer my article on” Guidance Notes On Mentioning Of HSN & SAC Codes” in Taxguru site.
Sir,
If we forgot to upload HSN Code in previous month(s), is it possible to upload HSN Code in subsequent month? Is there any penaly?
Dear Sir, Thank you to refer my article. Sorry to respond to your mail due to health problem. with regards to your query, there is no such facility. If you are not mentioned from1.4.2021 you are liable to pay penalty.
Sir Please clarify the Summary of HSN Code in table 12 must be equal to B2B,B2CS,CDNR etc.. or it can vary. The debit notes and credit notes raised to adjust the differences in Original Invoice reported in CDNR to be reported in HSN Summary or not required to be reported.
Dear Sir, Thank you to refer my article. sorry to respond delay due to health problem. With regards to your query, kindly refer my article on “Guidance Notes On Mentioning Of HSN & SAC Codes”. It is available i Taxguru for your calarity.
Hsn code compalsory or not for B2C, in gstr 1
Hi sir in these days GSTR1 says that HSN code is mandatory
If not mentioned any problem?
Dear Sir, Thank you to refer my article. If you are not mentioned HSN code in tax invoice or GSTR-1,As per Section 125 if the tax payer is not follow the amendments , they are liable to pay PENALTY of Rs.25,000/0 under CGST and Rs.25,000/- under SGST and Rs.50,000/- under IGST for each mistake under CGST Act,2017.
Sir, Please Inform HSN Code Compulsory Filing in GST R1 for B TO C Below 5 Crores Turnover preceeding Financial Year
Dear sir. It is optional to mention HSN CODE to supply to B2C by whose aggregate turnover below Rs.5 Cr.
Sir,
I want to know, whether HSN code will be applicable on Non GST product & Exempt Goods
Sir HSN CODE is applicable to Exempted Goods and services, not required to Non-Gst goods like petrol, Diesel,Natural Gas and Liquor etc.,
Sir, you are requested to kindly help to know that, it is mandatory to fill HSN wise summary for Export Service Invoice Zero Rated Supplies details. Please suggest.Looking for your help. I could not add HSN wise summary for export service invoice last month but added B2B supply details. Am I liable to pay penalty or is there any provision to amend table no 12.