Common Issues Faced By Taxpayers While Reporting HSN Summary Of Outward Supplies In GSTR-9 And Illustrative Suggestions For The Same

Is the HSN code required for Exempt/Nil/Non-GST supply

HSN summary is required for taxable as well as exempted supplies (e.g., bank interest, dividend, etc.)

 

Is it necessary to provide HSN summary for B2C supply

T/O > Rs. 5 cr. – Mandatory to report HSN for all transactions. T/O < Rs.5 cr. – B2B is mandatory and B2C transactions are optional. However, to reconcile with total T/O as per GSTR-9 it is recommended to give HSN summary for B2C.

 

If taxpayer is filing GSTR-9  voluntarily even if T/O < 2 cr., then basis, it is required to report HSN is it necessary to provide HSN summary for B2B and B2C supply?

If a taxpayer is filing GSTR-9 on a voluntary basis, it is required to report HSN Summary of B2B Outward Supplies.

 

GSTR-9

 

Whether gross outward supplies or net outward supplies after the effect of CN) to be reported?

It is advisable to report net outward supplies in Table 17 so it will match with total T/O shown after Table 13 of annual return.

 

If T/O < Rs. 5 cr., 4-digit HSN Code is to be mentioned but while filling GSTR-9 no option is coming for 4-digit HSN Code, then what to do?

It is advised to report 6-digit HSN codes in GSTR-9 as technical errors are reported while uploading 4-digit HSN Code on GST  portal.

 

If CN is issued for the previous FY and there is no other supply for the same HSN, what should be done as the portal is not accepting negative amounts for the same HSN?

In such cases, reconciliation of the HSN Summary with the books needs to be maintained as Table 17 will report only positive figures.

 

GST Portal is showing an error for tax amount difference while uploading HSN Summary i.e., the tax rate multiplied by taxable value even if the difference is in decimal

It is advisable to calculate an accurate tax amount by multiplying the taxable value by the tax rate.

 

GSTR-9

 

In few cases, HSN code and the tax rate is the same, but the quantity mentioned is kgs/Its and in some cases nos in invoices, how to report this?

While reporting in GSTR-9 in Table 17 separate line item for quantity i.e., kgs/Its and nos needs to be mentioned with respective taxable value, tax rate, and same HSN code.

 

What is reporting requirement of UQC in HSN for Outward Supplies in GSTR-9?

UQC details are to be furnished only for the supply of goods. Quantity is to be reported net of returns.

 

Read More: PAN-Aadhaar linking made mandatory for all PAN holders who do not fall under exempt category

 

What are the implications of improper reporting of HSN and SAC codes

HSN and SAC codes are linked to GST rates. A taxpayer will have to select the correct HSN code and applicable rate.
Also, for claiming ITC, the invoice should be complete in all respects as mentioned in Section 31 which requires mentioning HSN for goods and services on the invoice. So, if an assessee furnishes the incorrect HSN Code, this will lead to varying tax liability and impact the buyer’s claim of an input tax credit.