18 May 2021
Sir, A gst registered dealer hsn code show in gstr1 from April-21. Question: Dealer hsn code only or stock records (quantity) mentioned both compulsory.
26 July 2024
In GST filings, specifically for GSTR-1, businesses are required to provide details related to HSN codes and quantities for the goods they supply. Here’s a detailed breakdown of the requirements and their significance:
### **1. **HSN Code in GSTR-1**
#### **A. **HSN Code Reporting**
- **Requirement**: GST-registered dealers must mention the HSN codes for goods in their GSTR-1 returns. This helps in categorizing the nature of goods sold and ensuring proper tax classification. - **Details Needed**: - **HSN Code**: The code used to classify goods. The level of detail (4-digit or 8-digit) depends on the turnover of the business. - **Description**: A brief description of the goods corresponding to the HSN code. - **Value of Supplies**: The total value of supplies for each HSN code.
#### **B. **Quantity Reporting**
- **Requirement**: Businesses must also report the quantity of goods supplied in GSTR-1, though the specific format and level of detail required can depend on the regulations and the turnover of the business. - **Details Needed**: - **Quantity**: The total quantity of goods supplied under each HSN code should be mentioned.
### **2. **Compulsory Information**
#### **A. **HSN Code and Quantity**
- **HSN Code**: Mentioning the HSN code is mandatory in GSTR-1 to ensure proper classification and tax treatment of goods. - **Stock Records**: While the quantity of goods supplied must be reported, the actual stock records (i.e., the detailed inventory levels) are not required to be reported directly in GSTR-1. However, accurate reporting of quantities is necessary to match with the stock records.
#### **B. **Why Both are Important**
- **HSN Code**: Ensures that goods are classified correctly for tax purposes and helps in tax rate determination. - **Quantity**: Provides transparency and ensures that the reported value of supplies matches the actual quantities supplied, which is crucial for reconciliation and audit purposes.
### **3. **Specifics for GSTR-1**
- **GSTR-1 Filing**: When filling out GSTR-1: - **HSN Details**: Include the HSN codes and corresponding values of supplies. For businesses with a turnover above ₹5 crore, 8-digit HSN codes are required. - **Quantity**: Report the total quantity of goods supplied under each HSN code.
### **4. **Compliance and Best Practices**
- **Regular Updates**: Ensure that HSN codes and quantities are regularly updated and accurately reported to avoid discrepancies and issues during audits. - **Record Keeping**: Maintain detailed stock records and ensure they match the quantities reported in GSTR-1. This will help in smooth audits and reconciliations.
### **Example**
- **Scenario**: A business sells 500 units of electronic gadgets classified under HSN code 8517. - **In GSTR-1**: - **HSN Code**: 8517 - **Quantity**: 500 units - **Value**: ₹2.5L
- **Reporting**: The invoice details and quantities for each HSN code should be accurately reported in GSTR-1.
### **Summary**
- **HSN Code**: Must be mentioned in GSTR-1. The level of detail depends on the business turnover. - **Quantity**: Must be reported for each HSN code, reflecting the total quantity of goods supplied. - **Stock Records**: While detailed stock records are not required in GSTR-1, accurate reporting of quantities is crucial.
By adhering to these requirements, businesses ensure compliance with GST regulations and maintain accurate records for tax and audit purposes.
CAclubindia
