Breaking: Important Change in GST Returns on HSN Code Reporting

The Goods & Service Tax Network (GSTN) has recently issued an important advisory on HSN Code Reporting in GSTR-1 and GSTR-1A Returns.

As per the advisory Phase-3 of HSN Code Reporting is being implemented on GST Portal. Now, Manual user entry of HSN will not be allowed in GSTR-1/1A. Further, the HSN code can now be selected from the drop-down. A customized description mentioned in the HSN master will auto-populate in a new field called “Description as per HSN Code”.

In Table-12 validation with regards to value of the supplies have also been introduced:

i. These validations will validate the value of B2B supplies shown in different Tables viz: 4A, 4B, 6B, 6C, 8 (recipient registered), 9A, 9B (registered), 9C (registered), 15 (recipient registered), 15A (recipient registered) with the value of B2B supplies shown in table-12.

ii. Similarly, validations will validate the value of B2C supplies shown in different tables viz: 5A, 6A, 7A, 7B, 8 (recipient unregistered), 9A (export), 9A (B2CL), 9B (unregistered), 9C (unregistered), 10, 15 (recipient unregistered), 15A (recipient unregistered) with the value of B2C supplies shown in Table-12.

iii. In case of amendments, only the differential value will be taken for the purpose of validation.

*However, initially these validations have been kept in warning mode only, that means warning or alert message shall be shown in case of mismatch in values, whereas taxpayers will be able to file GSTR-1 in such cases. Further, in case B2B supplies are reported in other tables of GSTR-1, in that case B2B tab of Table-12 cannot be left empty.

Apart from above, the following additional enhancement have been made in Table-12 of GSTR-1/1A:

i. Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” & “B2C Supplies”. Taxpayers need to enter HSN summary details of B2B Supplies and B2C Supplies separately under respective tab.

ii. A new button has been introduced in Table 12, “Download HSN Codes List”. Upon clicking of this button, taxpayer would be able to download an excel file with the updated list of HSN & SAC codes for goods and services along with their description.

iii. The button for “Product Name as in My Master” has now been made searchable. Taxpayer can search the description provided by them in My HSN Master and upon selection of the same, the HSN code, Description as per HSN Code, UQC & Quantity shall be auto-populated. This is an optional functionality.