Vide Notification No. 78/2020 – Central Tax dated 15th October 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in table-12 of GSTR-1 on the basis of 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.

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 May 2025 return period.

Phase 3 being implemented from May 2025 are detailed herein below:

• Taxpayers with AATO up to ₹5 crores: 4-digit HSN codes mandatory.
• Taxpayers with AATO above ₹5 crores: 6-digit HSN codes mandatory.
• No manual entry: Taxpayers must select HSN codes from a dropdown menu, and the description from the HSN master will automatically populate.
• B2B and B2C Validations: Enhanced validations will ensure values in Table 12 match values in other parts of the GSTR-1, including B2B and B2C supplies. Initially, these validations will be in warning mode, allowing filing despite mismatches.
• B2B Tab Requirement: If taxpayers report B2B supplies in other tables of GSTR-1, they must not leave the B2B tab in Table-12 empty.

Phase 4: Will be communicated later.

Besides above, following additional enhancements have been made in Table 12 of GSTR1/1A:

• New Tabs: Bifurcation of Table 12 of GSTR-1/1A into two tabs viz. “B2B Supplies” and “B2C Supplies.”
• “Download HSN Codes List” Button: Allows taxpayers to download an updated HSN & SAC code list.
• Search Functionality: The button for “Product Name as in My Master” has now been made searchable. Taxpayer 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.

Additionally, Table 13 in GSTR-1/1A, which requires details of issued documents, is now mandatory starting May 2025. An error message will prompt if Table 13 is not filled when B2B or B2C supplies are reported.