HSN Code: Unregistered Persons

[Prem Gomathy]

If the turnover of X is less than ₹ 5 Crore in the last financial year, does he have to quote HSN code in supply made to unregistered persons?

Can someone guide in the light of Notification 78/2020?

[KASTURI SETHI]

Not required.

You have not mentioned your product. So also go through Notification No. 90/2020-C.T., dated 1-12-2020 amending Notification No.12/17- CT dated 28.6.17

[Prem Gomathy]

Dear Kasturi Sir,

1. Party is a clinic/dispensary providing predominantly In-Patient labour room services(IP) and Outpatient (OP) services. Total turnover including exempt IP supply is under ₹ 5cr and 95% of the invoices are B2C invoices.
2. As the party is not required to show HSN on B2C invoices, is it required to show HSN Codes in GSTR-1 for B2C Supplies? What is not shown on the invoice shouldnt be asked to be shown on GSTR-1 return right? Is that approach acceptable?

Thank You

[KASTURI SETHI]

Dear Sh.Prem Gomathy Ji,

I agree with your views expressed at serial no. 2 dated 29.8.21 above.

AI Summary

Small Business Under 5 Crore Turnover Not Required to Quote HSN Codes for B2C Supplies Under GST A query was raised regarding whether a business with a turnover under 5 crore needs to quote HSN codes for supplies to unregistered persons under GST regulations. Kasturi Sethi responded that it is not required and suggested reviewing relevant notifications. The business in question is a clinic with a turnover under 5 crore, primarily issuing B2C invoices. The query further inquired if HSN codes must be shown in GSTR-1 for B2C supplies when not required on invoices. Kasturi Sethi agreed with the approach that HSN codes are not needed in such cases.