GSTN Implement Mandatory Mentioning Of HSN Codes In GSTR-1

According to Notification No. 78/2020 dated October 15, 2020, taxpayers must report a minimum of 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 based on their Aggregate Annual Turnover (AATO) in the preceding fiscal year.

The changes will be implemented in a phase-wise manner on the GST Portal.

During Phase 1, taxpayers with an AATO of up to Rs. 5 crores are required to mandatorily report 2-digit HSN codes for goods and services. Manual user entry of HSN or description is permitted, and a warning or alert message must be displayed in the case of manual HSN.However, taxpayers will be able to file GSTR-1 after manual entry.

During Phase 1, taxpayers with an AATO of more than Rs. 5 crores are required to mandatorily report 4-digit HSN codes for goods and services. Manual user entry is permitted for entering HSN or description, and an error or warning message will be displayed in the event of an incorrect HSN code. However, taxpayers will be able to file GSTR-1 after manual entry.

Part 1 of Phase I has already been implemented from 1 April 2022 and is currently live on the GST Portal. Part-II of Phase-I would be implemented on the GST Portal on August 1, 2022, and taxpayers would be required to report HSN in table 12 of GSTR-1.

"Phases will be implemented on the GST Portal shortly, and respective dates of implementation and nature of change will be updated from time to time," the GSTN stated.

Advisory dated July 20, 2022

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