Summary: Starting January 2025, taxpayers must mandatorily report HSN (Harmonized System of Nomenclature) codes in Table 12 of GSTR-1/1A, following Notification No. 78/2020-Central Tax. This applies to all taxpayers, with requirements differing based on their annual aggregate turnover (AATO). Taxpayers with AATO up to ₹5 crore must report 4-digit HSN codes, while those exceeding ₹5 crore must report 6-digit HSN codes. Key features of Phase 3 include the elimination of manual HSN entry, dropdown-based code selection, and the auto-population of customized HSN descriptions. Table 12 is now divided into “B2B Supplies” and “B2C Supplies” tabs, and a new button enables taxpayers to download an updated list of HSN and SAC codes. Additionally, the “Product Name as in My Master” feature allows searchable product descriptions, which auto-fill relevant details. Initially, these validations will operate in warning mode, allowing filing despite discrepancies. Importantly, B2B transactions must be reported under the B2B tab in Table 12 to avoid leaving it empty. These updates aim to streamline compliance and ensure accurate reporting.
Attention GST lovers!
Mandatorily reporting of HSN Codes in GSTR-1/1A from the January, 2025 return period
As per the advisory issued on GST Common Portal dated 09-01-2025 it is being implemented from January 2025 GSTR-1/1A return period that the HSN Codes would be mandatorily mentioned in the Table No -12 of GSTR-1/1A. This is in continuation with the implementation of the Notification No. 78/2020- Central Tax dated 15th October 2020.
Major Features of the PHASE -3 (Is being implemented from Return Period of the January, 2025)
| Applicability >>>>> | To all taxpayers whom their preceding Financial AATO is up-to 5 cr. | To all taxpayers whom their preceding Financial AATO is more than-to 5 cr. | |
| How much digit HSN/SAC would be mentioned mandatorily in the Table No. 12 of GSTR-1/1A? | 4-digit-HSN/SAC Code -for GOODS and Services respectively | 6-digit- HSN/SAC Code -for GOODS and Services respectively | |
| -:What features would be implemented in PHASE -3:-
(from January 2025 Return Period) |
|||
| Manual user entry of HSN will not be allowed. | HSN code can be selected from drop down only. | A customized description mentioned in HSN master will auto-populate in a new filed called “Description as per HSN Code. | |
| Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” & “B2C Supplies”. | |||
| Table 12, “Download HSN Codes List”. A new button has been introduced 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. | |||
| “Product Name as in My Master”
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. |
|||
| Note: As per advisory, Initially these validations have been kept in warning mode only, that means warning or alert message shall be shown in case of mismatch in values, whereas taxpayers will be able to file GSTR-1 in such cases. | Note Further that : In case B2B supplies are reported in other tables of GSTR-1, in that case B2B tab of Table-12 cannot be left empty. That means if in you have any B2B Supply you must fill HSN in B2B table of Table No-12. | ||
Author Bio
