GSTN Implements Mandatory Mentioning of HSN codes in GSTR-1

The Goods and Service Tax Network(GSTN) has notified the implementation of the mandatory mentioning of HSN codes in GSTR-1.

As per Notification No. 78/2020 – Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digit or 6 digit of HSN Code in table-12 of GSTR-1 on the basis of their 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 as below:

Part I & Part II of Phase 1 has already been implemented from 01st April 2022 & 01st August 2022 respectively and is currently live on GST Portal. From 01st November, 2022, Phase-2 would be implemented on GST Portal and the taxpayers with up to Rs 5 crore turnover would be required to report 4-digit HSN codes in their GSTR-1 as per below mentioned scheme.

The taxpayers are advised to correct the HSN details where there is an error and a warning message is shown. However, it is not a mandatory validation for filing GSTR-1.

Further phases would be implemented on GST Portal shortly and respective dates of implementation and nature of change would be updated from time to time.