Navigating GSTR-9 Filings: Comprehensive Guide on HSN Code Reporting and Compliance Penalties.

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Every regular taxpayer under Goods and Services Tax (GST) in India is required to file GSTR-9. This is particularly true for taxpayers whose annual turnover exceeds Rs. 2 crore. A summary of supplies made under different tax heads from CGST, SGST, and IGST is given in GSTR-9. The introduction of GSTR 9C audit form for those with turnover beyond Rs. 2 crore emphasises the requirement for the reconciliation between the annual return filed and the audited annual financial statements. There are four types of GSTR-9 (other than for ISD registrants, Non-resident taxpayers, taxpayers liable to collect TCS under section 52 and taxpayers liable to deduct TDS under section 51 under this format):

  1. GSTR-9 for regular taxpayers who are filing GSTR-1 and GSTR-3B
  2. GSTR-9A for registered composite dealers
  3. GSTR-9B for e-commerce operator
  4. GSTR-9C for taxpayers subject to audit

The following view provides information on HSN Code reporting:

The Harmonized System of Nomenclature (HSN) codes is critical for correct declaration of goods, determination of correct applicable tax rates and for ensuring that the goods are appropriately classified. It contains a 6-digit uniform code that classifies 5,000 products into 500 categories. In India, it is further extended to 8 digits to maintain specificity.

Given below are the requirements of HSN Code reporting in GSTR-9:

HSN Code on the basis of turnover Turnover No. of Digits of HSN Code Up to Rs. 1.5 crore No HSN code required Rs. 1.5 crore to Rs. 5 crore 2-digits HSN code Above Rs. 5 crore 6-digits HSN code (for all supplies) or 4-digits (Harmonised system of Nomenclature) for bifurcation of supplies of inward and outward Imports/Exports 8-digits HSN code As per the law the penalties for the incorrect HSN code reporting could be either Rs.50,000. Which have to be paid as a penalty i.e. roughly CGST and SGST if the same error have been committed. For any other deviation also the fee shall similarly-pro rata shall be Rs.25,000 each. Further, for non-compliances such as the delayed filings and other short-fall from the provisions of the act shall be of min. Rs.5,000 or 0.5 % of turnover of the taxpayer for the relevant tax period, whichever is higher as per Section 125.


What is GSTR-9 used for?

GSTR-9 is an annual return form that outlines the outward and inward supplies, tax liability, and the input tax credits availed during the fiscal year. It must be filed by December 31st of the following year.

Who is exempt from filing GSTR-9?

Casual taxpayers, input service distributors, non-resident taxpayers, and taxpayers under Sections 51 and 52 for TDS/TCS are exempt.

How is the HSN code used in GSTR-9?

HSN codes are used to classify goods and for taxation, play a role in determining the rate of tax on a product, and are used to determining the eligibility to avail input tax credit (ITC) on inward supplies and tax paid on outward supplies being reported, simplifying the matching and claiming of ITCs.

What are the HSN code disclosure requirements in GSTR-9?

HSN code disclosure requirements are based on turnover including forturnovers of up to Rs. 1.5 crore, 2-digit HSN codes are required; forturnovers between Rs. 1.5 crore and Rs. 5 crore, 2‑digit HSN codes or 4‑digit HSN codes are required; and forturnovers above Rs. 5 crore, 4‑digit HSN codes are required.

Are there penalties for incorrect HSN code reporting on GSTR-9?

Yes, the penalties for incorrect or omission of HSN codes include ₹ 50,000 and will be levied @₹ 25,000 for assisting in GSTR-9 fraud.

What is the penalty for assisting in GSTR-9 fraud?

The penalty for aiding and abetting in GSTR-9 fraud is ₹ 25,000.

Are there any provisions for revising GSTR-9 filings if errors are discovered?

GSTR-9 once filed cannot be revised and while filing it will be important to ensure accuracy of all disclosures.

What is the form for reporting outward and inward supplies in GSTR-9?

Outward supplies are reported in Table 17 and inward supplies attracting reverse charge are reported in Table 18 of the GSTR-9.

What is the deadline for filing GSTR-9?

GSTR-9 annual return must be filed by December 31, or the due date for filing GSTR-9 for the fiscal year.

How can taxpayers be certain that they have complied with disclosure requirements for reporting under the HSN code in GSTR-9?

Taxpayers should exercise caution in reviewing their records to ensure the proper classification and HSN codes are applied and are documented with an accuracy of the details furnished in the return.

What is non-negotiable is the filing of GSTR-9 with correct HSN codes. Staying compliant with regulations, avoiding penalties and simply maintaining common business sense are all reasons for understanding requirements and following them. Given the complexity and the potential for changes that we saw in the past year, staying informed is critical for taxpayers. This blog is a good way to stay updated.


Filing GSTR-9 with correct HSN codes is essential for GST compliance and avoiding penalties. It’s crucial for businesses to understand and follow the requirements to remain in good standing. Given the complexity and potential changes in regulations, staying informed is vital. This ensures businesses can effectively manage their GST obligations.

author avatar
Aaryan Singh
B.Com degree with finance and accounting Specialisation in Goods and Service Tax (GST) and taxation system Completed certification course on GST from ICAI in 2022 Online GST practitioner course completed in 2023 from Indian Institute of Skill Development and Training.

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