GSTR-1 HSN Reporting: System changes for GST Return Filing

Key Changes to HSN Reporting

As GST compliance updates for HSN (Harmonised System of Nomenclature) in May GSTR-1 submission, these changes will be implemented in GSTR-1 Filing for May 2025, which will be done in month of June.

What is the change?

HSN code selection made mandatory from dropdown: Manual entry of HSN codes is not allowed anymore. Taxpayers need to choose the correct HSN code from a drop-down list. After selection, the system will start showing the description as per the HSN master, this will reduce errors and bring consistency.

What to Do Now?

Upgrade your Accounting Software: If you are directly importing your Accounting software data to form JSON to be uploaded on GST Portal, you probably need to check for next update, which bifurcates the HSN in B2B & B2C in the JSON file.

Many Taxpayers who are using Tally should note that the latest Tally update now bifurcates HSN in B2B & B2C in the JSON file which means on directly uploading JSON to the portal, B2C HSN details are shown separately. However, the Excel export from Tally is not yet properly updated with this bifurcation.

Use upgraded GSTN Utility: If you are using GSTN data, use Release 3.2.2, which has HSN bifurcated in to HSN(B2B) Supplies and HSN(B2C) Supplies.

Changes at Glance:

• HSN Summary is bifurcated into two sheets – one for B2B supplies and one for B2C supplies. Taxpayer would be required to provide details accordingly.
• Manual entry of HSN discontinued: now only selection from dropdown
• A customized description mentioned in HSN master will auto-populate in a new filed called “Description as per HSN Code”.
• New validation
  • B2B Value = B2B from HSN
  • B2C Value = B2C from HSN
• If the B2B table is full, the B2B segment in Table 12 cannot be left blank