Changes in GSTR 1/1A HSN Wise summary table from January 2025!

The Goods and Services Tax (GST) regime in India continues to evolve, with regular updates aimed at improving compliance and transparency. GSTN issued an advisory on 09^th January 2025 announcing crucial changes in Table 12- HSN Wise summary in GSTR 1 and GSTR 1A.

Let’s understand the changes!

Detailed Advisory dated 07^th January 2025

Reporting of HSN codes in Table 12 of GSTR-1/1A

1. Vide Notification No. 78/2020 – Central Tax dated 15th October 2020, it is mandatory for the taxpayers to report a minimum of 4 digits or 6 digits of HSN Code in table-12 of GSTR-1 based on 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 wherein Phase 2 was implemented on GST Portal effective from 01st November 2022. 

2. In continuation of the phase-wise implementation, Phase-3 of reporting of HSN codes in Table 12 of GSTR-1 & 1A is being implemented from the January 2025 return period. The changes implemented are detailed in the table below.

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3. Apart from the above, the following additional enhancements have been made in Table 12 of GSTR1/1A:

• Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” & “B2C Supplies”. Taxpayers need to enter HSN summary details of B2B Supplies and B2C Supplies separately under the respective tabs.
• A new button has been introduced in Table 12, “Download HSN Codes List”. Upon clicking this button, the taxpayer would be able to download an Excel file with the updated list of HSN & SAC codes for goods and services along with their description.
• The button for “Product Name as in My Master” has now been made searchable. Taxpayers can search the description provided by them in My HSN Master and upon selection of the same, the HSN code, Description as per HSN Code, UQC & Quantity shall be auto-populated. This is an optional functionality.

‍Key Highlights of the Advisory

1. Mandatory selection of 4/6 digits HSN from the dropdown:

• Mandatory Dropdown Selection: Manual entry of HSN codes is no longer permitted. Taxpayers must select HSN codes from a dropdown menu.
• Auto-populated Description: A new field, "Description as per HSN Code," will automatically populate the relevant description from the HSN master.

2. Value Validation in Table 12

• Supplies Validation:
  • The value of supplies in Table 12 will be validated against values reported in various tables (e.g., 4A, 4B, 6B for B2B and 5A, 6A, 7A for B2C).
  • In amendments, only differential values will be validated.
• Warning Mode: Initially, validation is kept in warning mode, allowing taxpayers to file GSTR-1 despite mismatches.

3. New Functional Enhancements

• Separate Tabs for B2B and B2C Supplies: Table 12 is now divided into two tabs for better clarity.
• "Download HSN Codes List" Button: Taxpayers can download an updated HSN and SAC codes list in Excel format.
• Searchable "Product Name as in My Master" Functionality: This optional feature allows taxpayers to search their custom product descriptions, which will auto-populate related HSN details.

4. Compliance Timeline

• The changes are effective from the January 2025 return period.

‍Conclusion

‍The phased implementation of changes in Table 12 of GSTR-1/1A, culminating in Phase 3 from January 2025, reflects a significant shift towards standardization and automation in GST compliance. The mandatory dropdown selection of HSN codes, detailed validations, and new features like bifurcation into B2B and B2C tabs simplify the filing process and ensure accuracy. Businesses should adapt their systems and train their teams to navigate these updates seamlessly, leveraging tools like the “Download HSN Codes List” and “My HSN Master” for efficiency. Staying proactive with these changes will help taxpayers ensure compliance and mitigate errors.

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