25.10.2022: Advisory on Implementation of mandatory mentioning of HSN codes in GSTR-1: GSTN

GSTN Advisory

The Goods and Service Tax Network (GSTN) has issued Advisory on Implementation of mandatory mentioning of HSN codes in GSTR-1, dated 22.10.2022. 

1. As per 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 facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal.

2. 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 with up to Rs 5 crore turnover would be required to report 4-digit HSN in Table 12 in their GSTR-1 as per the below scheme.

A. Taxpayers with AATO of upto Rs. 5 Crores.

  • 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.

B. Taxpayers with AATO of more than 5 Crores.

To be continue as it is.

3. Implementation of Phase 3-4 will be communicated in due course.

4. 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. 

5. 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. 

Source: GSTN
The Advisory can be accessed at https://tutorial.gst.gov.in/downloads/news/hsn_table_12_10_22_advisory_new.pdf


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