Implementation of mandatory mentioning of HSN codes in GSTR-1
Dated: 22/10/2022
As per Notification No. 78/2020– Central Tax dated 15th October 2020 the GST Department mandates all taxpayers to report a minimum of 4-digit or 6-digit HSN Code in table 12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. For facilitating all the GST taxpayers, these changes are being implemented in a phase-wise manner on GST Portal.
Some of the changes like Part I and Part II of Phase 1 has already been implemented from 1st of April 2022 and 1st August 2022 respectively and is currently live on GST Portal. And other remaining changes i.e. Phase 2 shall be implemented on GST Portal from 1st of November 2022 and taxpayers having turnover up to Rs. 5 Crore turnover would be required to report 4 digit HSN Codes in their GSTR-1.
To check the detailed advisory here is the drafted copy of the department. To check the official document, click here
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 digit or 6 digit of HSN Code in table-12 of GSTR-I on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. To view the detailed notification please click here.
- 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 Rs. 5 Crore | Taxpayers with AATO of more than Rs. 5 Cr. | |||||||
| Phase I |
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|
| ||||||
| Phase 2 | Mandatory reporting of HSN at 4-digits; | No change | |||||||
| Phase 3 | To be continued in due course | ||||||||
- Part I & Part II of Phase 1 has already been implemented from 01st April 2022 & 01st August 2022 respectively and is currently live on GST Portal. From 01st November, 2022, Phase-2 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. |
| · Taxpayers would be required to mandatorily report 4-digit HSN code. · Manual user entry would be allowed for entering HSN or description and in case of a wrong HSN reported a warning or alert message will be shown. However, taxpayers will still be able to file GSTR-1 |
To continue as it is. |
- The taxpayers are advised to correct the HSN details where there is an error and a warning message is shown. However, it is not a mandatory validation for filing GSTR-1.
- Further phases would 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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