HSN Wise Summary Reporting in GSTR-1

This query is : Resolved

Quick Summary

For businesses with a turnover under ₹5 crore, HSN-wise reporting in GSTR-1 is not mandatory for B2C sales, only for B2B supplies. However, if a B2C invoice exceeds ₹2.5 lakh, the HSN code must be included. You can issue invoices with prices inclusive of GST, but the taxable value and GST amount must be clearly determined and bifurcated in your accounts.

satish kumar Chauhan

satish kumar Chauhan (Querist)
Follow

08 April 2025 R/experts

As per notification No 78/2020 dated 15.10.20, HSN mentioning is not mandatory in B2C invoice for person turnover less than 5 Crore.
1. Query is at present, disclosure of B2C sale HSN wise details in GSTR-1, is mandatory or not in case of registered person having turnover up to 5 crore
2 Can we issue B2C invoice including GST and mentioned on bill rate are inclusive of GST 5% etc and bifurcate the tax element and Taxable sale value in books of accounts in case of turnover up to 5 crore.

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 April 2025 As per Notification No. 78/2020-Central Tax (dated 15.10.2020):

B2C Invoices: Mentioning HSN codes is not mandatory for businesses with turnover up to ₹5 crore in invoices (since it is a B2C supply).

GSTR-1 Reporting:

For businesses with turnover up to ₹5 crore, HSN-wise reporting in GSTR-1 is required only for B2B supplies (Tables 12 & 13).

For B2C supplies, HSN details are not required in GSTR-1 (Table 8/8A for summary of outward supplies).

However, if the supply is to an unregistered person (B2C) where invoice value exceeds ₹2.5 lakh, the invoice must have the HSN code (Rule 46 of CGST Rules).

2.
As per Rule 46 of CGST Rules:

The invoice must show:

Taxable value,

Applicable GST rate,

Separate GST amount, and

Total invoice value.

However, if the price is inclusive of GST, the invoice can mention:

"Price inclusive of GST @5%",

But the taxable value and GST amount must be clearly determined (can be shown separately or calculated in the books).

So. you can issue a B2C invoice with "inclusive of GST" wording, but ensure proper bifurcation in books and compliance with Rule 46.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

29 September 2025 Good luck..

satish kumar Chauhan

satish kumar Chauhan (Querist)
Follow

11 October 2025 thanks sir for proper reply

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

11 October 2025 You are welcome.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now