mandatory HSN code in GSTR-1 | GST Update May 2025 | The Goods and Services Tax Network (GSTN) has announced significant changes to the GSTR-1 and GSTR-1A forms, effective from the May 2025 return period. These updates pertain to the mandatory reporting of HSN codes in Table 12 and the inclusion of document details in Table 13. These measures aim to enhance data accuracy, standardization, and compliance in GST filings.
📌 Key Changes Overview | mandatory HSN code in GSTR-1
1. Table 12 – HSN Code Reporting
- Mandatory HSN Code Entry: Taxpayers must report HSN codes based on their Aggregate Annual Turnover (AATO):
- AATO up to ₹5 crore: Minimum 4-digit HSN codes.
- AATO above ₹5 crore: Minimum 6-digit HSN codes.
- Dropdown Selection: Manual entry of HSN codes is no longer permitted. Taxpayers must select the appropriate HSN code from a predefined dropdown menu, ensuring consistency and reducing errors.
- Bifurcation of Supplies: Table 12 has been divided into separate sections for B2B and B2C supplies, requiring HSN-wise reporting for each category.
2. Table 13 – Document Summary
- Mandatory Reporting: From May 2025 onwards, all taxpayers are required to complete Table 13, detailing the summary of documents issued during the tax period.
- Document Types: The table includes information on invoices, credit notes, debit notes, and revised invoices.
📋 Comparison: Previous vs. Current Requirements
| Aspect | Until April 2025 | From May 2025 Onwards |
|---|---|---|
| HSN Code Entry | Manual entry allowed | Dropdown selection mandatory |
| Minimum HSN Digits | 4 or 6 digits based on AATO | Same, but stricter enforcement |
| Table 12 Structure | Combined B2B and B2C supplies | Separate sections for B2B and B2C supplies |
| Table 13 Reporting | Optional | Mandatory |
❓ Frequently Asked Questions (FAQs) | mandatory HSN code in GSTR-1
Q1: What is the purpose of these changes?
A1: The updates aim to standardize data reporting, minimize errors, and enhance the accuracy of GST returns, facilitating better compliance and data analysis.
Q2: How can I find the correct HSN code for my products?
A2: The GST portal provides a searchable dropdown list of HSN codes. Taxpayers should select the appropriate code corresponding to their products or services.
Q3: What happens if I fail to comply with these new requirements?
A3: Non-compliance may lead to validation errors during return filing, potential penalties, and increased scrutiny from tax authorities.
Q4: Are there any tools to assist with these updates?
A4: Yes, several GST compliance software solutions are available to help taxpayers adapt to these changes.
For personalized assistance or further information on adapting to these changes, feel free to contact:
Manjeet Singh
Freelance Loan & Finance Consultant
📧 Email: infoggoc@gmail.com
📞 Mobile: +91-9811993953 | +91-8700237256
Stay informed and ensure compliance with the latest GST regulations to avoid any disruptions in your business operations.
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❓ FAQs
1. What GST update applies from May 2025?
GST rules mandate HSN code and document reporting in GSTR-1 and GSTR-1A from May 2025.
2. What does mandatory HSN code reporting mean in GSTR-1?
Taxpayers must mention correct HSN codes for all outward supplies in GSTR-1.
3. Who must comply with mandatory HSN code reporting?
All registered GST taxpayers filing GSTR-1 must comply based on turnover limits.
4. Does the rule apply to exporters?
Exporters must report HSN codes and document details for zero-rated supplies.
5. What is document reporting in GSTR-1A?
Taxpayers must report invoice series, credit notes, and debit notes in GSTR-1A.
6. Does this update affect monthly and quarterly filers?
Both monthly and QRMP filers must follow the new reporting rules.
7. What penalties apply for wrong HSN reporting?
Incorrect HSN reporting attracts GST penalties and return rejection risks.
8. Does GST portal validate HSN codes automatically?
The GST portal performs system-based HSN validation during return filing.
9. Can taxpayers revise HSN details in GSTR-1A?
Taxpayers can correct HSN errors using GSTR-1A within permitted timelines.
10. How does this update affect GST compliance cost?
Businesses face higher compliance requirements and documentation accuracy needs.
11. Does this change affect e-commerce sellers?
E-commerce sellers must report HSN codes for platform-based sales.
12. Does mandatory HSN reporting impact GST audits?
Accurate HSN reporting reduces audit risk and tax disputes.
13. How does this update affect exporters’ refunds?
Correct HSN reporting speeds up export GST refund processing.
14. Must service providers report HSN codes?
Service providers must report SAC codes under HSN reporting rules.
15. Does turnover decide HSN digit requirement?
Turnover determines the number of HSN digits required in returns.
16. Does this rule apply to B2C transactions?
Certain B2C supplies require HSN disclosure as per updated GST rules.
17. What documents need reporting in GSTR-1/1A?
Invoices, debit notes, credit notes, and revised documents require reporting.
18. Can GST software handle this update?
Updated GST software supports automated HSN and document reporting.
19. How should businesses prepare for this GST update?
Businesses must update ERP systems and train accounting teams.
20. Where can taxpayers check official GST notifications?
Taxpayers can check updates on the GST portal and CBIC notifications.