31 August 2017
Sir/Madam,
In gstr1 there is only one entry is allowed for one Hsn code. We have three different units of Quantity (kg, pac, no) for same hsn code . What is the solution
28 July 2024
In the GST return system, particularly in **GSTR-1**, handling multiple units of measure for the same HSN code can be a bit complex, especially when you have different units like kilograms (kg), packets (pac), and numbers (no) for the same HSN code. Here's how you can manage this situation:
### **Handling Multiple Units of Measure for the Same HSN Code in GSTR-1**
1. **HSN Code Entry:** - **Single HSN Code Entry:** In GSTR-1, you are allowed to report only one entry per HSN code under the **“Details of outward supplies”** section. This means that you need to consolidate all quantities for the same HSN code into a single entry for reporting purposes.
2. **Unit of Measurement:** - **Consolidation:** If you have different units of measurement (kg, pac, no) for the same HSN code, you should consolidate them into a common unit before reporting. Typically, you can report in the unit of measure that is most commonly used or most relevant for your business.
3. **Conversion to Common Unit:** - **Convert Quantities:** Convert all quantities into one common unit of measure (e.g., converting kg and pac into numbers or vice versa). Ensure that you have a consistent basis for conversion to avoid discrepancies. - **Report Consistently:** Once converted, report the consolidated quantity and value under the appropriate HSN code in GSTR-1.
4. **Invoice Units:** - **Consistency:** If your supplier invoice uses "cases" and you are reporting "numbers," ensure that the conversion is accurate and consistent. You can convert cases into numbers or kg based on your business’s standard practice. - **Document Conversion:** Keep proper documentation of how you converted units for reporting purposes. This will help in case of any audit or verification.
### **Example Scenario:**
Suppose you have the following data: - HSN Code: 123456 - Quantities: - 100 kg - 50 packets (each packet contains 10 units) - 200 numbers
**Steps to Report in GSTR-1:** 1. **Convert Units:** - Convert packets into numbers: 50 packets x 10 units = 500 numbers. - Total numbers: 100 kg (assuming conversion rate or standard) + 500 numbers + 200 numbers = Total units.
2. **Consolidate and Report:** - For the sake of simplicity, assume the final total is 800 numbers. - Report 800 numbers under HSN code 123456 in GSTR-1.
### **General Tips:**
- **Check GST Portal:** Review the latest updates and guidelines on the GST portal or consult the GST handbook for any recent changes or specific instructions related to unit of measure reporting. - **Consult Professionals:** When in doubt, it's always wise to consult a GST professional or tax advisor to ensure compliance and accuracy in reporting.
By consolidating and converting the units appropriately, you ensure that your GSTR-1 accurately reflects your business’s outward supplies and remains compliant with GST requirements.
CAclubindia
