HSN-Wise Summary in Tally Prime: Meaning, Configuration, Reports & GST Compliance Guide

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Introduction

Under GST, accurate classification of goods using HSN (Harmonised System of Nomenclature) codes is mandatory for correct tax calculation and return filing. To simplify GST compliance, Tally Prime provides a powerful HSN-Wise Summary report that helps businesses track sales, purchases, and tax values based on HSN codes.

The HSN-wise summary in Tally Prime is especially important for:

• GSTR-1 filing
• Audit and reconciliation
• Error-free GST reporting
• Departmental compliance

This article explains the HSN-wise summary feature in simple language, from basics to advanced usage.

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What is HSN-Wise Summary?

The HSN-wise summary is a GST report that shows:

• HSN code-wise outward or inward supplies
• Quantity sold
• Taxable value
• CGST, SGST, IGST amounts

This report helps ensure that:

• Goods are classified correctly
• GST returns are accurate
• No mismatch occurs during audits or assessments

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What is HSN Code Under GST?

HSN (Harmonised System of Nomenclature) is an internationally accepted system for classifying goods.

Purpose of HSN Codes

• Uniform classification of goods
• Simplified GST returns
• Reduced disputes in taxation
• Standardised reporting across India

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HSN Requirement Based on Turnover

Annual Turnover	HSN Requirement
Up to ₹5 Crore	4-digit HSN
Above ₹5 Crore	6-digit HSN
Export / Import	8-digit HSN

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Why HSN-Wise Summary is Important in Tally Prime

Key Benefits

• Ensures correct GST classification
• Helps in filing GSTR-1 (HSN Summary Table)
• Avoids GST notices due to mismatches
• Supports audit and compliance checks
• Saves time during return filing

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Prerequisites for HSN-Wise Summary in Tally Prime

Before viewing HSN-wise summary, ensure:

1. GST is enabled in the company
2. HSN codes are defined in stock items
3. Units of Measurement are properly configured
4. Sales and purchase vouchers are correctly recorded

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How to Enable GST in Tally Prime

1. Press F11 (Features)
2. Enable GST
3. Enter:
   • GSTIN
   • State
   • Registration type
4. Save the configuration

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How to Assign HSN Code to Stock Items

1. Go to Masters → Stock Item → Alter/Create
2. Select the stock item
3. Enter:
   • HSN Code
   • GST Rate
   • Applicable tax details
4. Save

This step is mandatory for HSN-wise reporting.

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How to View HSN-Wise Summary in Tally Prime

Navigation Path

1. Go to Gateway of Tally
2. Select Display More Reports
3. Choose GST Reports
4. Click on HSN Summary

You can view:

• Sales HSN Summary
• Purchase HSN Summary

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Understanding Columns in HSN-Wise Summary

Column	Description
HSN Code	Classification of goods
Description	Item name
Quantity	Total quantity sold/purchased
Taxable Value	Value excluding GST
CGST	Central GST amount
SGST	State GST amount
IGST	Integrated GST amount
Total Tax	Total GST

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HSN-Wise Summary for GSTR-1

HSN summary is mandatory in GSTR-1 for:

• Monthly filers
• Quarterly filers under QRMP (Invoice Furnishing Facility)

Tally Prime helps:

• Auto-compile HSN data
• Avoid manual calculations
• Reduce return filing errors

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Common Mistakes in HSN-Wise Summary

1. Missing HSN codes in stock items
2. Wrong GST rate selection
3. Incorrect unit of measurement
4. Mixing taxable and exempt items
5. Incorrect voucher classification

These mistakes may result in:

• GST notices
• Return mismatches
• Audit queries

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Best Practices for Accurate HSN-Wise Reporting

• Maintain standard HSN codes
• Review HSN summary monthly
• Reconcile with sales registers
• Avoid manual overrides
• Use updated GST rates

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HSN-Wise Summary for Audits & Assessments

During GST audits, officers commonly verify:

• HSN-wise turnover
• Tax calculation accuracy
• Quantity reconciliation
• Rate applicability

Having a clean HSN summary in Tally Prime ensures stress-free audits.

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How Binarysoft Technologies Can Help

Powered by Binarysoft Technologies – Authorized Tally Partner

Binarysoft Technologies provides professional assistance in:

• Tally Prime GST configuration
• HSN code setup and correction
• GST return preparation support
• HSN-wise reconciliation
• Tally customization and training
• Audit-ready reporting

Contact Details

�� Location:
1626/33, 1st Floor, Naiwalan, Karol Bagh, New Delhi – 110005, INDIA

�� Contact Us:
+91 7428779101, 9205471661, 8368262875

�� Email:
tally@binarysoft.com

�� Working Hours:
10:00 AM – 6:00 PM (Mon–Fri)

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Conclusion

The HSN-wise summary in Tally Prime is a critical GST compliance report that ensures accuracy, transparency, and audit readiness. Proper configuration of HSN codes and regular review of this report can help businesses avoid costly errors and penalties.

For reliable Tally Prime GST setup, HSN compliance, and professional support, connect with Binarysoft Technologies today.

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Frequently Asked Questions