GSTR1 HSN Summary from 01-04-2021

[Bharat Cholleti]

Dear sir,

Most of the persons are saying that from 1st April 2021 HSN summary is mandatory in GSTR-1. I Want to know that which section,rule,notification,circular says about it. Neither rule 59 nor notification No.12/2017,78/2020 says about HSN Summary in GSTR-1.

42nd GST Council Meeting says separate notification will be issued about reporting of HSN summary in GSTR-1, but no specific notification has been issued after this meeting. only NNo.78/2020 issued that talks about HSN in invoices. Please post your opinion to clear my confusion on this issue.

[Rajagopalan Ranganathan]

Sir,

Table 12 of GSTR-1 requires furnishing of HSN-wise summary of outward supplies. Point No. 5 of Recommendations of the 42nd GST Council Meeting stipulates that revised requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1 w.e.f. 01.04.2021 as under:

a. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above ₹ 5 crores;

b. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto ₹ 5 crores;

c. Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.

It is not stated that any Notification will be issued in this regard Since the table 12 is already in existence there is no need to issue a fresh notification. You have to just fill it up

[KASTURI SETHI]

In case the Common Portal System accepts GSTR-1 without HSN summary (in the absence of Notification,circular etc.), go ahead. These are procedural matters. Column of HSN summary has been in existence since July, 2017. I have never filled up the column of HSN summary in GSTR-1 in respect of my clients. If the Common Portal System accepts GSTR-1 return without HSN summary, you need not worry. In that situation, problem does not exist. I have not filed GSTR-1 returns for April, 21 in respect of my clients because all have opted for quarterly returns.

Needless to say the decisions of GST Council meeting are always implemented by issuance of notification, circular etc. (depending upon the nature of decision). You may recall the issue of 'interest on net cash liability' which was implemented only after the matter travelled to the High Courts. It consumed almost two years after the meeting..

[ABHISHEK TRIPATHI]

Dear Bharat Ji,

In GSTR –1 the following insertion was made vide NN. 82/2020 - Central Tax dated 10.11.2020.

18. It will be mandatory to specify the number of digits of HSN code for goods or services that a class of registered persons shall be required to mention as may be specified in the notification issued from time to time under proviso to rule 46 of the said rules.

[Emphasis Supplied]

In the GSTR – 1, instruction no(s). 16, 17 and 18 seems for table 12 [HSN wise summary]

As you have rightly said that neither the rule (specifically) or the NN 78/2020 [only for invoices] states the requirement of HSN for Table No. 12.

However, the situation is a little dicey. The government vide form GSTR –1 has made this HSN Code mandatory to fill. So, the pertinent question being whether this mandatory requisite is in accordance with Rule 59 of the CGST Rules?

Relevant extract of Rule 59

(4) The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include the–

(a) invoice wise details of all -

(i) inter-State and intra-State supplies made to the registered persons; and

(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to the unregistered persons;

(b) consolidated details of all -

(i) intra-State supplies made to unregistered persons for each rate of tax; and

(ii) State wise inter-State supplies with invoice value upto two and a half lakh rupees made to unregistered persons for each rate of tax;

(c) debit and credit notes, if any, issued during the month for invoices issued previously.

[Emphasis Supplied]

If you look at GSTR –1, invoice wise detail (as stated in subrule 4 above) has to be filled in Table 4, 5 and 7 [This is coming from instruction no. 4 of GSTR – 1]

IF HSN was required to be filled in Table 4, 5 and 7, then read with instruction 18 of GSTR-1, in such situation, I would have said 100% it is mandatory and required to be filled.

However, for HSN they have made Table 12 separately. Now the interpretative question being whether Table 12 to be seen as a part of invoice wise detail as stated in Rule 59(4) of the CGST Act?

You may fight over interpretation and may establish that HSN is not required in light of rule 59(4). Or you may simply fill Table 12 and avoid any unnecessary dispute.

AI Summary

HSN summary requirement in GSTR 1: obligation depends on return table, GSTR 1 instructions and Rule 59 interpretation. Whether furnishing an HSN-wise summary in FORM GSTR-1 is mandatory turns on the interplay between the GSTR-1 form instructions (which include a pre-existing Table 12 for HSN-wise outward supplies and an amendment making HSN-digit specification mandatory for classes of persons) and the requirements of Rule 59 describing invoice-wise details; because Table 12 is separate from invoice-wise tables, interpretation determines whether completing Table 12 is statutorily required, and practical compliance may depend on portal acceptance or choosing to fill the table to avoid disputes.