How to Prepare HSN Summary for GSTR-9: Complete Annual Return Guide + TallyPrime Automation

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Introduction (What Is HSN Summary in GSTR-9?)

Every registered taxpayer filing GSTR-9 must provide a consolidated summary of all goods and services supplied or received—classified by their HSN (Harmonised System of Nomenclature) codes.
This section helps the GST Department understand the nature of supplies, tax liability distribution, and overall business activity.

From FY 2021-22 onward, the HSN Summary is mandatory, and the taxpayer must report outward and inward supplies separately based on applicable turnover slabs.

In this article, you’ll learn:
✔ What the HSN Summary includes
✔ Turnover-based reporting requirements
✔ How values must be filled
✔ Common mistakes to avoid
✔ How TallyPrime automatically prepares HSN data for easy GSTR-9 filing

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1. Why HSN Summary Is Required in GSTR-9

The GST Council mandates HSN-wise reporting for:

• Improving tax classification accuracy
• Standardizing supply reporting across industries
• Tracking product-wise tax contribution
• Preventing misclassification and tax evasion

The HSN Summary provides the government with a national-level dataset of what goods/services are being supplied, in which quantities, and at what tax rates.

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2. HSN Summary Sections in GSTR-9

There are two major tables inside the Annual Return:

A. Table 17 – HSN-Wise Summary of Outward Supplies

Here, you must report:

• HSN code
• Description of goods/services
• UQC (Unit Quantity Code)
• Total quantity
• Total value
• Taxable value
• Integrated / Central / State / Cess tax amounts

B. Table 18 – HSN-Wise Summary of Inward Supplies

Here, you report inward supplies where:

• Total inward supply value per HSN exceeds 10% of total purchases, or
• The value exceeds limits notified by GST law

Most businesses report inward supplies on a best-estimate basis based on their purchase registers.

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3. Turnover-Based Requirements for HSN Summary

The HSN Summary requirement depends on your aggregate turnover:

Annual Turnover	HSN Reporting Requirement
Up to ₹5 crore	4-digit HSN required
Above ₹5 crore	6-digit HSN mandatory

For services, Service Accounting Codes (SAC) apply.

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4. What Data Must Be Filled in the HSN Summary?

You must summarize all outward and inward supplies under each HSN.

For every HSN, report:

• ✔ HSN Code
• ✔ Description
• ✔ UQC (KG, NOS, LTR, etc.)
• ✔ Total Quantity
• ✔ Total Value of Supplies
• ✔ Taxable Value
• ✔ IGST/CGST/SGST/Cess amounts

Important Note:

The values you fill in GSTR-9 should match (or reasonably align with) Books of Accounts, not necessarily GSTR-1 or GSTR-3B.

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5. Common Mistakes Taxpayers Make

❌ Using incorrect HSN code

❌ Reporting 2-digit HSN instead of 4/6 digits

❌ Not mentioning UQC correctly

❌ Mismatch between taxable value and total value

❌ Wrongly mapping purchase and sales HSNs

❌ Missing inward supplies above threshold

These errors often cause return mismatches during audits.

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6. How TallyPrime Helps You Prepare HSN Summary Automatically

TallyPrime simplifies GSTR-9 HSN reporting:

✔ Auto-collection of HSN/SAC from all transactions

As long as you assign HSN codes to Stock Items or Ledger Masters, TallyPrime auto-builds the summary.

✔ HSN-wise Sales & Purchase Summary Reports

Navigate to:
Gateway of Tally → Display More Reports → Statutory Reports → GST → HSN/SAC Summary

✔ Auto-calculation of taxable and total values

Reduces manual errors during GSTR-9 filing.

✔ Export HSN Summary to Excel

Useful for CA review or GST offline tool validation.

✔ Supports FY-wise HSN migration for GSTR-9

TallyPrime also highlights missing or incorrect HSN codes.

This makes GST Annual Return filing faster, compliant, and audit-ready.

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7. Step-by-Step: How to Prepare HSN Summary for GSTR-9 in TallyPrime

Step 1: Ensure HSN Codes Are Added

• In Stock Item OR Ledger – specify HSN/SAC.
• Enable in: F11 → Statutory & Taxation → GST Details.

Step 2: Review HSN/SAC Summary Report

Check for missing codes, mismatches, or wrong units.

Step 3: Verify Quantities & Tax Values

Match with financial records for accuracy.

Step 4: Export data

Export to Excel or JSON for validation.

Step 5: Enter values in GSTN portal

Fill Table 17 & Table 18 using the summary from TallyPrime.

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8. Best Practices for Accurate HSN Reporting

• Maintain a master HSN list for your business.
• Always update HSN codes for new items.
• Align UQC with GST standards (NOS, KG, LTR, etc.).
• Keep inward/outward HSN consistent across financial year.
• Reconcile turnover difference between GSTR-1, GSTR-3B, and books.

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FAQs on HSN Summary in GSTR-9

Q1.

Yes. Outward supplies HSN is compulsory. Inward supplies must be reported if above prescribed limits.

Q2.

Q3.

Q4.

Q5. Can TallyPrime automatically prepare HSN Summary?

Yes. TallyPrime auto-captures all HSN-wise sales/purchase values and generates a ready HSN Summary for GSTR-9.

Q6. Do services also require HSN Summary?

Yes, but using SAC Codes instead of HSN.

Q7. Can missing HSN codes be edited later in Tally?

Yes, you can update item masters, and TallyPrime refreshes the summary instantly.

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