How to Manage B2B and B2C Breakup for HSN Summary in GSTR-1 Using Tally Prime

Published on: 28-04-2025

How to Manage B2B and B2C Breakup for HSN Summary in GSTR-1 Using Tally Prime

Filing GSTR-1 accurately is essential for every GST-registered business. In Tally Prime, the preparation of the HSN Summary Report — including the correct breakup between B2B (Business-to-Business) and B2C (Business-to-Consumer) — is made easier with automated features.

Here’s a complete guide for Tally Prime users to handle this smartly and compliantly:

Understanding HSN Summary in Tally Prime

In Tally Prime, the HSN Summary for GSTR-1 captures:

• HSN/SAC Codes
• Description of Goods/Services
• Quantity Sold
• Total Taxable Value
• Applicable Tax (IGST, CGST, SGST, Cess)

Tally generates this data automatically from the sales transactions you've recorded, based on the items and services linked with HSN codes.

Why B2B and B2C Breakup is Important in Tally Prime

In GSTR-1:

• B2B Supplies require invoice-wise detailed reporting (GSTIN of buyer mandatory).
• B2C Supplies are consolidated under HSN code in bulk.

Tally Prime captures this differentiation automatically — provided your sales entries are correctly categorized at the time of voucher entry.

How Tally Prime Handles B2B vs B2C for HSN Summary

 Step-by-Step Process in Tally Prime

 1. Set Up Ledgers Correctly

• Go to Gateway of Tally > Accounts Info > Ledgers > Alter/Create
• For B2B customers: Set GST Registration Type = Regular / Composition
• For B2C customers: Set GST Registration Type = Unregistered

Tip: Ensure the customer’s GSTIN is entered for B2B parties.

 2. Configure Stock Items with Correct HSN/SAC

• Gateway of Tally > Inventory Info > Stock Item > Create/Alter
• Enable GST Details → Enter HSN Code and applicable GST Rates.

Tally pulls HSN from here when you create a sales invoice.

 3. Record Sales Properly

When entering sales vouchers:

• Select the correct party (B2B/B2C) as per the ledger.
• Select the stock items (with HSN configured).
• Taxes will auto-apply based on the HSN and party’s GST status.

 4. View GSTR-1 HSN Summary

• Go to Gateway of Tally > Display More Reports > Statutory Reports > GST > GSTR-1
• Press F6 to open the HSN/SAC Summary view.

Here you’ll find:

• Separate taxable values captured from B2B and B2C invoices.
• Consolidated HSN reporting ready for filing.

Tally Prime segregates and compiles the B2B and B2C data automatically based on the GST registration status of the customer ledgers.

Quick Example

Suppose you sell:

• 5 Air Conditioners to ABC Distributors Pvt Ltd (Registered) — B2B
• 10 Air Conditioners to Retail Customers — B2C

When you check the HSN Summary:

• B2B sales will show linked to specific invoices.
• B2C sales will be summarized and clubbed under the Air Conditioner’s HSN code.

 No manual splitting required if your ledger setup and item masters are correct!

Important Tips for Tally Prime Users

 Always keep your party ledgers updated with GSTIN and GST Registration Type.
 Stock Items must have correct HSN codes and tax rates configured.
Regularly reconcile your HSN Summary before exporting GSTR-1.

Shortcut Tip:
Use Alt + E inside GSTR-1 to Export the JSON file directly for uploading to the GST Portal.

Conclusion

Using Tally Prime, the B2B and B2C breakup in the HSN Summary is effortless if your base data is strong. Correct ledger setup, stock item configuration, and disciplined voucher entry ensure that your GSTR-1 filing is smooth, error-free, and fully compliant.

Smart Move: Always preview your GSTR-1 HSN Report before final submission!