The Goods and Services Tax Network (GSTN) continues its phased implementation of enhanced compliance requirements under the GST regime. As part of this initiative, Phase-3 of mandatory reporting of HSN codes in Table 12 of GSTR-1/1A and mandatory furnishing of document details in Table 13 will be rolled out beginning with May 2025 return period.
This article aims to provide a comprehensive overview of these changes, their legal backing, applicability, and compliance procedure.
Legal Background
Vide Notification No. 78/2020 – Central Tax dated 15th October 2020, the Central Board of Indirect Taxes and Customs (CBIC) notified that HSN (Harmonized System of Nomenclature) codes must be reported in GSTR-1 as per the following turnover thresholds:
| Aggregate Annual Turnover (AATO) in Previous FY | Number of HSN Digits Required |
|---|---|
| Up to ₹5 crore | Minimum 4 digits |
| More than ₹5 crore | Minimum 6 digits |
The notification aims to standardize reporting and improve analytics, compliance monitoring, and return matching for taxpayers and authorities alike.
Phase-wise Implementation Overview
Phase 1 (Earlier Implementation):
Initial rollout involved voluntary compliance and awareness creation.
Phase 2 (Effective from 01st November 2022):
Enforcement of minimum HSN code digits based on AATO was applied to GSTR-1 Table 12.
Phase 3 (Effective from May 2025 return period):
The upcoming phase mandates:
- Strict compliance of HSN codes reporting in Table 12 of GSTR-1 and GSTR-1A.
- Mandatory reporting in Table 13 for document summary details.
Changes in GSTR-1/1A Effective May 2025
1. Table 12 – HSN-wise Summary of Outward Supplies
Mandatory Requirements:
- Businesses must report HSN codes with applicable digits based on their previous year’s AATO.
- Details must include:
- HSN Code
- Description
- UQC (Unit Quantity Code)
- Total Quantity
- Taxable Value
- Integrated Tax / Central Tax / State Tax / Cess (as applicable)
Implications:
- Taxpayers using generic descriptions without HSN codes may face validation errors.
- Correct classification is essential to avoid mismatches, penalties, or future scrutiny.
2. Table 13 – Document Issuance Summary
Mandatory Reporting:
- Every registered taxpayer is required to report the number and types of documents issued during the tax period, including:
- Invoices for outward supply
- Invoices for inward supply from unregistered persons
- Revised invoices
- Debit notes
- Credit notes
- Delivery challans
Format Includes:
| Document Type | From Serial Number | To Serial Number | Total Number Issued | Cancelled |
|---|
Purpose:
- Ensures cross-verification of data
- Facilitates audit and verification processes
- Prevents misuse of document series or inflated reporting
Compliance Advisory
For Taxpayers:
- Review your accounting and billing systems to ensure accurate HSN-level classification.
- Ensure document serials are recorded and tracked in accordance with the GST rules.
- Reconcile your document issuance data regularly to avoid discrepancies in Table 13.
For Accountants and Tax Professionals:
- Educate clients regarding new obligations from the May 2025 return period.
- Update ERP/software tools to comply with mandatory tables.
- Cross-check HSN codes with latest GST Tariff Notifications.
Penalties for Non-Compliance
Failure to report correct HSN codes or document summary may result in:
- Scrutiny notices
- Penalties under Section 122 of the CGST Act
- Suspension of GST registration for habitual non-compliance
The implementation of Phase 3 from May 2025 marks a significant move towards automation and data-driven governance under GST. Taxpayers are advised to make the necessary preparations to ensure seamless compliance with the revised requirements in Table 12 and Table 13 of GSTR-1/1A.
For more information and a detailed advisory, taxpayers may visit the official GST portal or consult with their tax advisors.
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