Intro Paragraph:
The HSN summary in GSTR-1 is a crucial compliance step for GST filers. As per CBIC’s latest advisory, exports fall under the B2C category. Let’s break it down with clarity and legal backing.
CBIC Clarification on HSN Summary in GSTR-1
The Goods and Services Tax Network (GSTN), following CBIC’s direction, has issued validations for Table 12 of GSTR-1 — the HSN-wise summary.
Why Exports Fall Under B2C?
- Exports (Table 6A) do not involve a registered recipient in India.
- This applies even if you’re filing Table 6A or 6B separately.
HSN Validation: B2B vs B2C – Table Format
| Category | HSN Code Table Reference | Recipient Type | Where to Report |
|---|---|---|---|
| B2B Supplies | 4A, 4B, 6B, 6C, 8 | Registered | B2B HSN |
| 9A, 9B, 9C | Registered | B2B HSN | |
| 15, 15A | Registered | B2B HSN | |
| B2C Supplies | 5A, 6A (Export), 7A, 7B | Unregistered | B2C HSN |
| 8 | Unregistered | B2C HSN | |
| 9A (Export/B2CL), 9B, 9C | Unregistered | B2C HSN | |
| 10, 15, 15A | Unregistered | B2C HSN |
Note: “B2CL” stands for B2C Large Invoices (invoice value > ₹2.5 lakh).
Practical Example
Scenario: You exported goods worth ₹10 lakh to Germany.
- You report it under Table 6A of GSTR-1 (Exports).
- For Table 12, you must include this under B2C HSN summary.
- Do not classify this under B2B, even though invoice value is high.
Legal Backing & Source
This clarification is based on the GSTN advisory on HSN table validations, aligned with the GST Council’s decision and Rule 59 of the CGST Rules, 2017.
📄 Official Source – GST Portal Advisory
Expert Tip
If your GSTR-1 shows a validation error for exports under B2B in Table-12, revise it to B2C. Mismatch here may affect e-invoice validations or refund processing.
FAQs
Q1. Can exports be reported under B2B if the foreign buyer has a GSTIN?
A: No. Exports are to overseas entities without Indian GSTIN. Hence, always B2C.
Q2. What happens if I wrongly report exports under B2B?
A: GSTN validation errors will occur.
Q3. Does this apply to both goods and services exports?
A: Yes, for HSN summary in Table-12, both are treated under B2C.
Closing CTA:
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Summary
Exports must be reported under B2C in the HSN summary (Table-12) of GSTR-1, even though they’re filed under Table 6A. This avoids filing errors and ensures smooth validation.