Updated HSN Code Requirements in Table 12

As part of the Phase 3 rollout, Table 12 of GSTR-1 and 1A has been updated. Taxpayers are now required to follow new rules on the basis of their previous year’s turnover:

• For businesses with turnover up to Rs. 5 crore:

It is now mandatory to report 4-digit HSN codes for both goods and services. The HSN codes must be selected from a drop-down list and manual entry is not allowed. The description will be filled automatically based on the selected code.

• For businesses with turnover above Rs. 5 crore:

6-digit HSN codes must be used which is also selected from a dropdown. The description will be auto filled from the HSN master.

These changes are aimed to reduce mistakes and to make sure consistent reporting.

New Value Validations in Table 12

Value validations are introduced for making the data quality better. The system will check the consistency of values entered in Table 12 with those in other tables of GSTR-1:

• Values will be matched against Tables 4A, 4B, 6B, 6C, 8, 9A, 9B, 9C, 15, and 15A for B2B supplies.
• The system will compare data with Tables 5A, 6A, 7A, 7B, 8 (for unregistered), 9A (exports), 9B, 9C, 10, 15, and 15A for B2C supplies.

Currently, mismatches will only cause warnings, but more strict enforcement is expected in the future.

What Taxpayers Should Do

• Update systems to use dropdown-based HSN code selection.
• Taxpayers need to update their systems to use drop-down based HSN code selection.
• Cleaning up of HSN data to match the GST portal’s codes.
• Providing trainings to the team on the updated structure of Table 12 and the new requirement for Table 13.
• Using the download tool for the current HSN/SAC codes.
• Need to pay attention to system warning while filing to avoid penalties.

Table 13 Filing Now Mandatory

From May 2025, Table 13 which is related to all documents issued like invoices and debit/credit must be filled. If this is left blank and other supply details are reported, then the system will block the return submission.

These changes are made to bring more accuracy to GST return filing and making it transparent for all taxpayers.