Regarding hsn summary in gstr-1

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Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2018 We are a pump dealer. We have to issue a credit note in the month of august (the item is Pump) but we have not sold any pump in the month of august. We have chosen monthly return filing under gstr-1.

there is no other sale in the month of august. turnover for the month of august is zero

My question is how to show that in hsn summary in GSTR-1 as it does not accept negative stock.

Further how to show that credit note in GSTR-3b as it does not accept negative sale.

Please reply !!

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2018 please respond as the matter is very urgent

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2018 Please revert as the matter is very urgent

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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20 July 2025 Great question! Here's how to handle your situation with HSN summary in GSTR-1 and credit notes when no sales happened in that month:

1. Showing Credit Note in HSN Summary in GSTR-1
HSN summary in GSTR-1 normally shows the summary of outward supplies (sales) by HSN code.
Since you have no sales of pumps in August, your HSN summary for that month should ideally be blank or zero for pumps.
But you have a credit note related to pumps, which means a negative adjustment.
GSTR-1 HSN summary does NOT accept negative quantities or negative turnover.
Solution:
Report zero or no entry in HSN summary for pumps in August (since no sales happened).
The credit note is not reported in HSN summary because it is an adjustment document, not a sale.
Credit notes are to be declared in the “Credit/Debit Notes” section of GSTR-1, under Table 9B (Credit/Debit Notes (Registered) or 9D (Credit/Debit Notes (Unregistered)).
2. Showing Credit Note in GSTR-3B
In GSTR-3B, you report net outward supplies (sales minus credit notes).
Since you have no sales but only a credit note (negative supply), you cannot show negative sales.
How to handle:
Report zero outward supplies under the relevant tax head (CGST/SGST/IGST) in GSTR-3B.
Credit note value is adjusted against the next month’s sales or input tax credit.
You cannot show negative sales in GSTR-3B.
Alternatively, you can report the credit note in the month it is issued under the credit/debit notes section in GSTR-1, but in GSTR-3B, keep the net sales zero if no sales occurred.
Summary:
Form/Section What to Report
GSTR-1 HSN Summary No entry for pumps (zero sales)
GSTR-1 Credit Notes Report credit note under Credit/Debit Notes section
GSTR-3B Show zero sales; credit notes cannot make sales negative

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