As you know the date of GST annual return GSTR 9 is extended to 30th November 2019. A 3 months extra time is enough to understand all the concept related to GSTR 9. Today, we will discuss one of the important topic related to annual return and that is HSN Summary in GSTR 9.
HSN stands for Harmonised System of Nomenclature. The main purpose of this system is to classify the products in a systematic manner.
It is true that the term HSN is well-known now due to the introduction of GST. But before the GST regime, HSN code was also used in Central Excise also.
In GSTR 9, you have to fill HSN summary for both outward supplies and inward supplies.
Let us discuss it.
HSN summary in GSTR 9
In GSTR 9, there are two important tables related to HSN wise summary.
- Table 17: HSN summary of Outward Supplies.
- Table 18: HSN summary of Inward Supplies.
These tables are not auto-populated.
Therefore, you have to fill it manually.
Is it mandatory to provide HSN summary in GSTR 9?
If the turnover of the related financial year is not more than Rs. 1.50 Cr, then it is optional to provide the HSN summary.
However, if the turnover is more than Rs. 1.50 Cr then it is mandatory.
Further, if your turnover is more than Rs.1.50 Cr but not more than Rs. 5.00 Cr, you have to provide 2 digits HSN code.
If your turnover is more than Rs. 5.00 Cr, then you have to provide 4 digits HSN code.
The above criteria are applicable to both outward supply and inward supply.
Table No 17: HSN summary of Outward Supplies
Table number 17 of GSTR 9 is related to the HSN summary of outward supplies.
If your turnover is more than Rs. 1.50 Cr then you have already provided the HSN details in GSTR 1.
So, you can use Table No 12 of GSTR 1 in this matter.
You have to provide the summary of outward supplies made against a particular HSN code.
For example, let you are a general order supplier. You deal in 5 number of products. Out of that 5 products, 3 products come under the same HSN code say 904o. Other two are under 2 separate HSN code say 9041 and 9042 respectively. You have to provide the information related to those 3 HSN codes separately. In other words, you have to provide the details of HSN code 9040, 9041 and 9042 separately one by one.
Table No 18: HSN summary of Inward Supplies
In the case of Table 17, you can use GSTR 1 as support.
But in the case of Table 18, the thing is a little different.
As you know still now no GSTR 2 has been filed. So, from where you can get the detailed information about HSN summary of inward supplies?
Another question may arise in your mind.
Is it mandatory to provide full HSN details related to inward supplies?
The summary details are required to be declared only for those inward supplies which in value independently account for more than 10% of the total value of inward supplies.
For example, let your total inward supplies is Rs. 5 Lakhs.
You have to provide the details of those products whose value is more than Rs.50 Thousand i.e. 10 % of Total Inward Supplies.
To understand this you must go through the following excel worksheet.
In the above example, the total value of inward supplies is Rs. 15 Lakh. Hence 10% will be Rs. 1.5 lakh. Now you have to select that particular product which’s purchase value is more than 10 % of total inward supplies. Here item 3 and 4 fulfill the criteria. Hence these two products will be included.
If you want to check the position of your products, you can download it Download link of 10% Criteria.
You can watch the detailed video in this subject
Summary of the total discussion
Summary of the total important points related to HSN summary in GSTR 9:
- If the turnover is not more than Rs. 1.50 Cr, then this summary is OPTIONAL.
- It the turnover is more than Rs. 1.50 Cr, then it is mandatory to provide the HSN summary.
- If the turnover is more than Rs. 1.50 Cr but not more than Rs. 5.00 Cr, then you have to mention 2 digits HSN code.
- On the other hand, if the turnover is more than Rs. 5.00 Cr, then 4 digit HSN code is required.
- You have to provide the details related to a particular HSN code separately ( Quantity, Rate, GST rate etc related to a particular HSN code).
- For Table 17 i.e. HSN summary of Outward Supplies, you can use Table 12 of GSTR 1.
- The summary details related to inward supplies are required to be declared only for those inward supplies which in value independently account for more than 10% of the total value of inward supplies.
- You can download this summary here for further use Download the summary of this discussion.
I hope you can understand the total discussion related to HSN summary of GSTR 9.
If you want any further clarification, please ask me through the comment.
Friend, sharing is caring. So, if you like this article then please share it.
Meet you soon.