In a significant update for taxpayers, the GST portal has issued a new advisory on the mandatory mentioning of HSN (Harmonized System of Nomenclature) codes in GSTR-1 and GSTR-1A. Initially announced on January 9, 2025, with an implementation date from the January 2025 tax period, this advisory has now been revised. The updated advisory, issued on January 22, 2025, states that the implementation will commence from the February 2025 tax period.
Key Highlights of the New Advisory
Phase-III of HSN Code Implementation:
After the successful roll-out of Phase-I and Phase-II, Phase-III is being introduced for Table 12 of GSTR-1 and GSTR-1A. This phase brings critical changes aimed at enhancing the accuracy and ease of reporting HSN details in GST returns.
Mandatory Selection of HSN from Drop-Down Menu:
- Manual entry of HSN codes has been replaced.
- Taxpayers are now required to select the appropriate HSN code from a drop-down menu.
- This change ensures standardized and error-free reporting of HSN codes.
Bifurcation of Table-12 into Two Tabs:
- Table-12 of GSTR-1 and GSTR-1A has been divided into two tabs:
- B2B (Business-to-Business) Supplies
- B2C (Business-to-Consumer) Supplies
- This bifurcation is designed to streamline the reporting process by clearly segregating B2B and B2C supplies.
Validation Mechanism Introduced:
- A validation mechanism has been incorporated for the values of supplies and tax amounts reported in Table-12.
- Initially, these validations will operate in warning mode only.
- Failing validation checks will not block the filing of GSTR-1 and GSTR-1A, offering taxpayers some flexibility during the initial implementation period.
Key Differences Between the Old and New Advisory
| Aspect | Old Advisory (9 Jan 2025) | New Advisory (22 Jan 2025) |
|---|---|---|
| Implementation Date | January 2025 tax period | February 2025 tax period |
| Manual HSN Entry | Replaced by drop-down menu selection | Replaced by drop-down menu selection |
| Table-12 Bifurcation | Divided into B2B and B2C tabs | Divided into B2B and B2C tabs |
| Validation Mechanism | Introduced in warning mode | Introduced in warning mode |
Read GSTN Advisory
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 In this phase manual entry of HSN has been replaced by choosing correct HSN from given Drop down.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 hereThanking You,
Team GSTN
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Hello Respected Mam/Sir
Is HSN Code Summary Of B2C Mandatory in After implements in GSTR-1 Table-12 Bifurcation