GST HSN Code Reporting Updates from January 2025

The GST reporting of HSN codes in Table 12 of GSTR-1/1A is being updated as per phased implementation. Under Phase 3, effective February 2025, taxpayers with an Aggregate Annual Turnover (AATO) of up to ₹5 crore must mandatorily report 4-digit HSN codes, while those exceeding ₹5 crore must report 6-digit HSN codes. Manual entry of HSN codes will no longer be allowed; taxpayers must select codes from a dropdown menu, and a customized description will auto-populate from the HSN master. Additional validations will compare values of B2B and B2C supplies across various tables in GSTR-1 to ensure consistency. Initially, these validations will only trigger warnings, allowing taxpayers to file returns despite mismatches.

Enhancements include bifurcation of Table 12 into separate tabs for B2B and B2C supplies, a “Download HSN Codes List” button, and a searchable “Product Name as in My Master” feature for auto-population of details. Phase 4 updates will be communicated later. These changes aim to streamline HSN reporting and ensure accuracy in GST filings.

Goods and Services Tax
Government of India, States and Union Territories

Implementation of mandatory mentioning of HSN codes in GSTR-1 & GSTR 1A

Jan 22nd, 2025

After successful implementation of Phase-I & Phase-II now Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from return period February 2025. In this phase manual entry of HSN has been replaced by choosing correct HSN from given Drop down. Also, Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately. Further, validation regarding values of the supplies and tax amounts involved in the same, have also been introduced for both the tabs of Table-12. However in initial period these validations have been kept in warning mode only, which means failing the validation will not be a blocker for filling of GSTR-1& 1A. To view the detailed advisory please click here

Thanking You,
Team GSTN

Reporting of HSN codes in Table 12 of GSTR-1/1A

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 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 wherein Phase 2 was implemented on GST Portal effective from 01^st November 2022.

2. In continuation of the phase wise implementation, Phase-3 of reporting of HSN codes in Table 12 of GSTR-1 & 1A is being implemented from February 2025 return period. The changes implemented are detailed in the table below.

3. Apart from above, the following additional enhancement have been made in Table-12 of GSTR-1/1A:

i. Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” & “B2C Supplies”. Taxpayers need to enter HSN summary details of B2B Supplies and B2C Supplies separately under respective tab.

ii. A new button has been introduced in Table 12, “Download HSN Codes List”. Upon clicking of this button, taxpayer would be able to download an excel file with the updated list of HSN & SAC codes for goods and services along with their description.

iii. The button for “Product Name as in My Master” has now been made searchable. Taxpayer can search the description provided by them in My HSN Master and upon selection of the same, the HSN code, Description as per HSN Code, UQC & Quantity shall be auto-populated. This is an optional functionality.

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