Is HSN Wise Summary Mandatory For Filing GSTR 9?

GSTR 9 filing deadlines are approaching, and most of the business owners are questioning - Do I really need to add HSN-wise summary? Is it mandatory? What if I don’t provide? Don’t worry,  you are not alone here. Most of the manufacturers, retailers, and small and big enterprise owners get puzzled with the same compliance requirement.

With annual returns asking for reconciliations, taxpayers are finding answers to whether HSN-wise summary details being optional or mandatory. If you too, have this question in mind, this blog is a must-read.

Scroll below and get all your questions answered here. Start reading. 

Is It Mandatory to Provide HSN Summary for GSTR 9 Filing? 

Yes, you need to provide the HSN summary while filing GSTR 9 restricted to certain clauses. Initiating from FY 2021-22, adding HSN details is compulsory for reporting outward supplies in Table 17 of GSTR 9.

• Taxpayers or business owners crossing a turnover of Rs. 5Cr should add HSN codes of 6 digit.
• Taxpayers with turnover below the threshold should report 4-digit HSN codes. 

Why is the HSN-wise Summary Important in GSTR 9? 

1. Get Accurate Tax Computations: Every HSN code is connected with specific tax rates, ensuring precision in every GST computation. 
2. Streamlined Tax Audits: HSN-wise summary ensures streamlined GSTR 9 process and minimizes errors during audits. 
3. ITC Reconciliation: Ensure accuracy while claiming ITCs throughout the year with HSM summary details. 

Tables 17 and 18: HSN Code Format for GSTR 9

1. Outward Supplies in Table 17 

Table 17 of GSTR 9 maintains a clean record of the HSN-wise summary for outward supplies. It consists of HSN codes, descriptions, quantity, tax payable, and taxable amount. 

2. Inward Supplies in Table 18 

This is optional where businesses have to provide an HSN summary for inward supplies in table number 18. It comprises HSN codes, description, quantity, taxable amount, and taxes payable, but this time, it is completely based  on turnover and choice. 

Accuracy in tables 18 and 17 is important to comply with GST norms. Filling the tables appropriately ensures proper classification and reporting of all the entities, facilitating seamless GSTR 9 filing. 

How Do I Upload HSN Details in Form 9 of GSTR? 

1. Check the turnover to report HSN details.
2. Abide by the following rules:
   1. Leverage the 6-digit HSN code for turnover above Rs 5Cr.
   2. Use a 4-digit HSN code for turnover below Rs 5Cr reported for B2B supply.
3. Consolidate all the transactions.
4. Classify these transactions on the ERP to report them accurately.
5. Now, navigate to the official GST filing portal, go to GSTR 9 filing, and add details of the HSN summary in tables 17 and 18. Make sure all the entries are done accurately to avoid penalties.

What if You Fail to Add or Fill Incorrect HSN Details in GSTR 9? 

1. Businesses might have to pay monetary penalties depending on the severity and frequency of discrepancies. 
2. Errors in HSN entries can raise flags and encourage tax officials to conduct additional audits and examinations. 
3. This may also lead to legal consequences and costly penalties arising due to repeated errors in HSN summary. 
4. No compliance with HSN rules can damage business reputation, ruin relationships, and tarnish client trust in the long run. 

5 Mistakes to Avoid While Adding HSN Summary During GSTR 9 Filing

1. ncorrect HSN entries can cause penalties. Double-check your HSN details before submitting the GSTR 9 form.
2. Overlooking HSN requirements is also a common mistake by small businesses. Keep a check on your turnover and provide HSN details accordingly.
3. HSN codes might change with GST laws, so failing to keep a check on these updated codes can cause non-compliance. So, verify the HSN codes before utilizing them.
4. Incomplete description of products and services can be confusing; make sure you avoid this negligence.
5. Misclassification of HSN entries is again a common mistake. Placing your goods and services under the wrong HSN code category can cause misunderstanding.

Conclusion 

Hopefully, the blog has answered your questions on HSN summary being mandatory or optional for GSTR 9 filing. Truly, to ensure error-free and seamless GSTR 9 filing, HSN details play a vital role. So, next time while you are filing annual returns, make sure all your HSN details are accurate to avoid penalties and additional audits.

GSTR 9 filing due date is approaching. Add this article to your checklist and read it thoroughly while adding HSN details.

Still stuck with manual filings? Navigate to Munim and go for stress-free GSTR 9 filing. Get started today.

About the author

Priyanka Chaudhari

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Priyanka Chaudhari is an enthusiastic writer with an ocean of experience in the tech world. She writes mainly on topics like accounting, e-invoicing, GST, and billing. Currently, she is working with Munim and comes up with innovative topics for the readers. Stay tuned to her blogs.