HSN Reporting Changes in GSTR-1 from May 2025:

HSN Reporting Changes in GSTR-1 from May 2025 Businesses filing GST returns will have to follow new rules for Table 12 of GSTR-1, starting from May 2025. This table is required for reporting HSN-wise details of outward supplies. These changes are made to improve the data accuracy, make filing process simpler and easier and reduce the mistakes. From now on manual entry of HSN codes will no longer be allowed. Businesses will have to select the HSN code from a drop-down list. Apart from this, other new features include separate tabs for B2B and B2C supplies. It also includes an auto check feature to catch any errors. These rules will apply according to business's yearly turnover. Tally Prime is also updating to support these changes. In this article, we will learn about the new rules in a simple way to help businesses understand and follow them.

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.

Clear separation for B2B and B2C supplies

Table 12 will now have two separate tabs on for the Business-to-Business (B2B) and the other is for Business-to-Consumer (B2C) supplies. This will help in better classification on the basis of nature of the recipient.

Auto-validation feature introduced

A new system has been added which helps to check if the values in Table 12 matches with other tables like 4A, 4B, 6B, and 6C in GSTR-1. Currently, mismatches only show warnings and will not stop the process of return filing.

New features for user convenience

• Taxpayers can download an Excel file with updated HSN and SAC codes and their descriptions.
• A new option called "Product Name as in My Master" is provided that helps users to find their product details, this will auto-fill HSN details like Unit Quantity Code (UQC) and quantity.

Turnover-based applicability

Aggregate Annual Turnover (AATO)	HSN Digits Required	Manual Entry Allowed	Effective From
Up to Rs. 5 crore	4 digits	No	May 2025
Above Rs. 5 crore	6 digits	No	May 2025

These rules follow Notification No. 78/2020 - Central Tax dated 15th October 2020.

What businesses should do

• They should update accounting or billing software to match the new dropdown system.
• Provide trainings to the staff about the new process and features.
• Using the new tools like HSN code download and product search for better reporting.
• Keep a close eye on validation warnings and fix any issues quickly.

Steps in Tally Prime 6 to enable the change

1. First, go to F11 > Set/Alter GST Rate and Other Details – set it to 'Yes'. 2. Now, click on More Details > Show More. 3. Choose the option "Separate B2B and B2C HSN Summary applicable from" and enter 01-05-2025.