HSN code whether mandatory for B2C sales also

This query is : Resolved

Mahabir Prasad Agarwal (Querist)
Follow

03 May 2024 When HSN Code is mandatory ? My client's sales includes B2B and B2 Sales (Total turn over between 2.00 to 5.00 crore). I think HSN code is mandatory in B2B Sales, but Tally Prime does not accept HSN code for B2B sales only. Sir, how to proceed in the matter ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 May 2024 Take up the issue with tally people for software correction.

RAJA P M

RAJA P M (Expert)
Follow

04 May 2024 This is not issue. In HSN wise summary it's include. In GSTR 1 return table it's not required. For sales invoice preparation it's also available. So, keep it as its.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

15 August 2025 1. Turnover up to ₹5 crore:
B2B supplies: HSN code (min. 4 digits) is mandatory.
B2C supplies: HSN code is optional.
2. Turnover above ₹5 crore: HSN code (6 digits) is mandatory for both B2B and B2C supplies.
3. GSTR-1 Filing (Table 12 HSN Summary):
GSTN now requires separate HSN entries for B2B and B2C supplies. The B2B section is mandatory—even for B2C-only taxpayers. If you have no B2B sales, a temporary workaround is to fill in “0” in the B2B HSN row for smooth filing.
Summary Table:
Turnover Range B2B HSN Requirement B2C HSN Requirement
≤ ₹5 crore Mandatory (4-digit) Optional
> ₹5 crore Mandatory (6-digit) Mandatory (6-digit)
Remember to keep tabs on your PAN-wise turnover annually—this determines your HSN obligations even if one GSTIN shows lower revenue. Let me know if you'd like help configuring Tally Prime or other accounting software to capture HSN flexibly for both transaction types.

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