HSN Summary compulsorily to be formed part of GSTR-1 Quarterly Returns. Notification No. 78/2020 – Central Tax released on 15/10/2020, made compulsory for the registered persons to mention either 4 digit or 6 digit of HSN Code in HSN Summary of the GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding financial year. However, these changes were being inculcated on GSTN Portal in phase manner. From 1st November, 2022 the Phase implementation has been started, the summary of the phase 2 implementation is as follows:
| Registered Person Type | HSN Code to be mentioned in HSN Summary |
|---|---|
| Aggregate Annual Turnover (AATO) of Previous year up to 5 Crore | 4 Digit HSN Code to be mentioned compulsorily in GSTR-1 |
| Aggregate Annual Turnover (AATO) of Previous year greater than 5 Crore | 6 Digit HSN Code to be mentioned compulsorily in GSTR-1 |
For Notification No. 78/2020 Central Tax refer link >> https://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-78-central-tax-english-2020.pdf
For update link on GST Portal refer >> https://tutorial.gst.gov.in/downloads/news/hsn_table_12_10_22_advisory_new.pdf
Penalty for non compliance
Every Registered person is mandatorily required to submit HSN Summary details in GSTR-1. If not, a Penalty of INR 50,000 of which INR 25,000 under CGST and INR 25,000 under SGST) is leviable for not filing or wrong filing of HSN Summary in GST Returns and not mentioning or wrong mentioning of Tax Invoices.
HSN Summary compulsorily to be formed part of GSTR-1 – Glitches of GSTN Portal
- GSTR-1 can be filed even if HSN Summary not mentioned.
- The HSN Code details is not currently being mentioned against the invoice wise details of B2B Invoice.
- The invoice wise details for B2C is currently not filed instead a rate wise and state wise summary of B2C invoices is being filed.
- As separate HSN Summary is currently not generated by few Accounting software.
- Before 1st November, 2022, GSTR-1 return was not allowing registered person with AATO up to 5 crores to mention 4 digit HSN Code and 6 digit HSN Code was only required.
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