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

HSN code requirement: supplies to unregistered persons need not list HSN where turnover is below the statutory threshold.
HSN code need not be quoted on supplies to unregistered persons where the supplier's turnover in the prior financial year falls below the prescribed turnover threshold. A clinic providing predominantly inpatient and outpatient services with overall turnover below the threshold and largely B2C invoices is not required to show HSN on B2C invoices, and correspondingly need not report HSN for those B2C supplies in GSTR-1.