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HSN mentioning mandatory or not for sales less than 1cr in previous year

HARSHIL JAIN (MD) (338 Points)

06 May 2021

Sir sales of last year was less than 1 cr ,
major transactions we make are b2b
so is it mandatory for us to mention HSN in gstr1.
i have already filed gstr1 for april month
plz guide
(gstr1/iff filing is optional to us as we file on quarterly basis.)

if it is mandatory to mention HSN in gstr1 as well then plz tell me what is to be done to rectify the same

is thr any penalty regarding same?

plz clarify at the earliest

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10 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 06 May 2021

1) Yes, it is mandatory to mention 4-digit HSN in case of B2B supplies w.e.f. 1st April 2021.

2) I think HSN can be added by amending same in the next GSTR1 (though not sure)

3) General penalty of 50k u/s 125 (25k + 25k) would be required to be paid in case of receipt of notice from the department. I think chances of getting such a notice is not very certain (unless repetitive) because there is no loss of revenue to the dept.

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RENU SHARMA (1388 Points)
Replied 06 May 2021

Yes its mandatory to mention HSN code in tax invoice issue to b2b Transaction form 1 st April 2021 via notification 78/2020
as per section 125 :cgst 25000+sgst 25000 general penalty

HARSHIL JAIN (MD) (338 Points)
Replied 06 May 2021

Mam i am asking about mentioning HSN figures on portal gstr1and 3b not on invoices

is it mandatory to mention it in April gstr1and 3b ?

CMA Poornima Madhava (CMA) (13112 Points)
Replied 06 May 2021

As I understand, it is mandatory to mention HSN in GSTR1 too.

RENU SHARMA (1388 Points)
Replied 06 May 2021

We upload outward supplies in Gstr1 invoice wise so HSN wise summary in table 12

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HARSHIL JAIN (MD) (338 Points)
Replied 07 May 2021

But like i said my turnover was less than 1 cr and i am quarterly filer. ......i filed gstr1 iff just for convenience of my clients though it was optional for me.

while filing april month gstr1 i couldn't see hsn column anywhere and same when i am opening gstr1 of may month also there is no such option of showing hsn wise summary.

by any chance does that mean that when filing of quarterly gstr1 of full quarter will open then that time i have to file hsn wise summary..

or does it opens in same month
plz cross check and let me know
and also how to rectify it if i have made mistake

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 07 May 2021

Dear Harshil Jain
It's mandatory to mention HSN in GSTR 1 under Table 12(HSN Summary) .
As before this Notification , the HSN was not mandatory mention on Tax Invoice for taxpayer whose aggregate turnover was below 1.5 crore , so they are not also liable to report the same in GSTR 1. But after the issuance of Notification 78 , it's become mandatory to mention HSN on tax invoice for every taxpayer , hence the same need to be reported in GSTR 1 also .

HARSHIL JAIN (MD) (338 Points)
Replied 07 May 2021

So far 3 members have said the same thing

my query is why is it not showing to me in may month also.
and if i have missed in april month then how can i rectify it in next month..

CMA Poornima Madhava (CMA) (13112 Points)
Replied 07 May 2021

HSN has to be mentioned on the tax invoice and GSTR1. There is no option to mention HSN in the IFF utility. You may mention the HSN at the time of filing of GSTR1 for the quarter.