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Is the HSN CODE Mandatory

11 July 2021

Is it mandatory for a Taxpayer with only B2C Turnover less than ₹ 5 Crore to enter his HSN/SAC Code in table 12 of the GSTR 1 from 01-04-2021.

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4 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 11 July 2021

As per Notification 78/2020 CT :

Aggregate Turnover more then 5 Crore:
6 Digit HSN code shall be mentioned mandatory on Tax Invoice.

Aggregate Turnover less then 5 crore :
4Digit HSN code shall be mentioned for B2B supply in Tax invoice.

Hence from above it's being very clear that Reporting HSN is in Tax Invoice & the particular in tax invoice need to be mentioned as accordingly in GSTR 1.

So in my view the Registered person whose turnover is below 5 crore is not required to provide HSN for B2C supply in Table 13 of GSTR 1

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Shivam RC (Student) (23683 Points)
Replied 11 July 2021

Agree with Pankaj Sir's view...
Quoting of HSN Code in Tax Invoice in the case of B2C Supply by the taxpayer having aggregate turnover upto Rs. 5 crores is "OPTIONAL." So there is no need to mention HSN Summary in FORM GSTR-1 if you have only B2C Supply.

subhagan sreerangam (7054 Points)
Replied 11 July 2021

From the descripttion of Pankaj Rawat sir and Shivam sir I understand that the taxpayers who handles only less ₹ 5 crore outward supply and only B2C invoices does not need to mention the HSN Cide in the GSTR 1.