GSTN Advisory on Implementation of Mandatory mentioning of HSN Codes in GSTR-1 and GSTR-1A

The Goods and Services Tax Network (GSTN) has issued an advisory on implementation of mandatory mentioning of HSN codes in GSTR-1 and GSTR-1A.

Vide Notification No. 78/2020 – Central Tax dated 15th October 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in table-12 of GSTR-1 on the basis of Aggregate Annual Turnover (AATO) in the preceding Financial Year. To facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal wherein Phase 2 was implemented on GST Portal effective from 01st November 2022.

The Advisory Read as Follows:

1. After successful implementation of Phase-I and Phase-II now Phase-III regarding Table 12 of GSTR-1 and 1A is being implemented, from return period February 2025.

2. In this phase, manual entry of HSN has been replaced with selecting the proper HSN from the drop down list. Table-12 has also been divided into two tabs, B2B and B2C, to better report on these supplies.

3. Further, validation regarding values of the supplies and tax amounts involved in the same, have also been introduced for both the tabs of Table-12.

4. However, during the initial period, these validations were simply in warning mode, which means that failing the validation will not prevent you from filling out GSTR-1 and 1A forms.

The changes implemented are detailed in the table below:

The following points given below describes the above mentioned things in details:

i. Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” and “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 and 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 and Quantity shall be auto-populated. This is an optional functionality.