Goods and Services Tax

Implementation of mandatory mentioning of HSN codes in GSTR-1

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 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.

Thanking You,
Team GSTN | 20/07/2022

Also Read: New Table 3.1.1 in GSTR-3B for reporting supplies u/s 9(5)

Advisory on mandatory mentioning of HSN CODES in GSTR-1

Detailed Advisory on Implementation of mandatory mentioning of HSN codes in GSTR-1

1. 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 their Aggregate Annual Turnover (AATO) in the preceding Financial Year.

To view the detailed notification, please click here.

2. To facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal as below:

Phases

Taxpayers with AATO of up-to 5 cr. Taxpayers with AATO of more than 5 cr.
Phase 1 Part I Taxpayers are required to mandatorily report 2-digit HSN codes for goods & services.

Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of manual HSN.

However, taxpayers will be able to file GSTR-1 after manual entry.

Taxpayers are required to mandatorily report 4-digit HSN codes for goods & services.

Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of incorrect HSN code.

However, taxpayers will be able to file GSTR-1 after manual entry.

Part II Same as above Taxpayers will now have to mandatory report 6-digit HSN code.

No change in other conditions

Phase 2 to Phase 4 To be communicated in due course.

3. Part 1 of Phase I has already been implemented from 01 st April 2022 and is currently live on GST Portal. From 01stAugust, 2022, Part-II of Phase-I would be implemented on GST Portal and the taxpayers would need to report HSN in table 12 of GSTR-1 as per below mentioned scheme.

Taxpayers with AATO of up-to 5 cr. Taxpayers with AATO of more than 5 cr.
To continue as it is.
  • Taxpayers would be required to mandatorily report 6-digit HSN code.
  • Manual user entry would be allowed for entering HSN or description and in case of a wrong HSN reporteda warning or alert message will be shown.However, taxpayers will still be able to file GSTR-1.
  • Taxpayers would be expected to correct HSN where there is an error and a warning message shown.

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

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