GST System Update: GSTN Implements Mandatory mentioning of HSN codes in GSTR-1

The Goods and Services Tax Network (GSTN) has updated its system to implement mandatory mentioning of HSN codes in GSTR-1.

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 their Aggregate Annual Turnover (AATO) in the preceding Financial Year. In order to facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal.

For taxpayers with AATO of up-to 5 crores, the advisory issued by the GSTN today stated that the taxpayers are required to mandatorily report 2-digit HSN codes for goods & services. Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of manual HSN. However, taxpayers will be able to file GSTR-1 after manual entry.

For taxpayers with AATO more than 5 crores, it was stated that the taxpayers are required to mandatorily report 4-digit HSN codes for goods & services. Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of incorrect HSN code. However, taxpayers will be able to file GSTR-1 after manual entry.

Further phases will be implemented on GST Portal shortly and respective dates of implementation and nature of change would be updated from time to time.

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