GST: GSTN issues Advisory on HSN and GSTR-1 Filing

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TaxClue Team
TaxClue Team
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

The Goods and Service Tax Network (GSTN) issued the  Advisory on HSN and GSTR-1 Filing.

According to the Notification, taxpayers need to declare Harmonised System of Nomenclature (HSN) Code of Goods and Services supplied by them on raising of tax invoices, with effect from 1st April 2021.

The turnover limits are as follows:

  • If the Aggregate Turnover in the preceding Financial Year is up to Rs. 5 crores the Number of Digits of the HSN Code to be reported in GSTR-1 will be “4”
  • If the aggregate turnover, is above Rs. 5 crores the Number of Digits of the HSN Code to be reported in GSTR-1 will be “6”. HSNIt has been reported by few taxpayers that HSN used by them for reporting in GSTR-1 is not available in the Table 12 HSN drop-down.

They have further stated that they are facing issues in adding the required HSN details in Table 12 and filing a statement of outward supplies in form GSTR-1 of July 2021. Further, in some JSON files, the HSN field is coming as a blank from the offline tool, along with other errors namely processed with Error, in Progress or Received but pending, and duplicate Invoice Number found in payload, please correct.

It has been noticed in a few cases that the taxpayers have not used the latest version of Offline Tool while uploading their GSTR-1 return through Offline mode on the GST portal. In some instances, it was observed that HSN Code and Tax rate fields were left blank in Table 12 of GSTR-1 and hence the system has not processed the saidGSTR-1.

The taxpayers are advised to download the latest version of Offline Tool (version 3.0.4) provided on the GST portal, instead of any older version. In case the taxpayer is using any third-party GSTR-1 offline tool, then the service provider of the third-party offline tool should be contacted & requested that the tool be updated.

GST law requires an invoice, credit/debit note to be unique across a Financial Year, and the same record number should not be repeated in the same Financial Year. If the same record number is reported again in the same Financial Year, the same is treated as a duplicate record, and rejected by the system.

It has been noticed that taxpayers were reporting duplicate records, and the same was being rejected by the system, causing inconvenience to other genuine filers. It is requested this kind of check may be exercised by the taxpayer or by the offline tool used by the taxpayer.

If the HSN of any Goods/Service is otherwise valid but not accepted on GST Portal/ e-invoice Portal / e-way Bill portal, please raise a ticket on GST Self-Service Portal.

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