What will be the penalty are applicable in GSTR-1 if The HSN code is not entered

Mandatory HSN/SAC Codes in GST Invoices from 01.04.2021

If the turnover of a company remains up to 5 crores then it is mandatory to write HSN code in the B2B invoice. And in the case of B2C, it is not necessary to write HSN code in the invoice.

If the Turnover of a company is more then 5 crore it is mandatory to write HSN code in the B2B & B2C both invoices.

note point****** The HSN code has to be entered in 2 places, one in the invoice and the other in the column of GSTR-1

What is the penalty if we do not enter the HSN code in our GSTR-1 portal

As per section 125:- If a taxpayer does not enter his HSN code in the GSTR-1 column then a penalty will be imposed on 25000 of CGST and 25000 = 50000 of SGST.

*** This is not applicable for IFF taxpayers who opt for QRMP scheme. But HSN code is mandatory for all those taxpayers whose turnover is more than 05 crores or 05 crores

Condition 1:- If the turnover is more than 5 crore in a previous financial year then it is mandatory to write his HSN code for her B2B or B2C invoices

Condition 2:- If the turnover up to 5 crores in a previous financial year then it is mandatory to write his HSN code for her B2B invoices but it is not applicable in the case of B2C invoices.