Mandatory reporting of HSN codes in GSTR-1 & GSTR-1A from January 2025: Implementation of Phase-III of the mandatory reporting

 

Here is a brief summary of Implementation of Phase-III of the mandatory reporting of HSN codes in GSTR-1 & GSTR-1A from January 2025 :

1) Mandatory reporting of 4 digit & 6 digit HSN codes for goods and services in cases of AATO up to Rs. 5 Cr and more than 5 Cr respectively.

2)

a)Taxpayers must select HSN codes from drop-down only.
b)Manual entry of HSN codes will not be allowed.
c) A customized description mentioned in HSN master will auto-populate in a new field called “Description as per HSN code “

3) HSN details to be reported under two separate Tab under Table-12 namely:
a) B2B Tab for business to business transactions and
b) B2C Tab for business to consumers transactions

4) Validation checks introduced:
a) B2B value shown in different Tables to be compared with value shown in Table-12, B2B Tab and
b) B2C value shown in different Tables to be compared with value shown in Table-12, B2C Tab
Initially any mismatch will be warned but Taxpayers allowed to be filled their returns.

5) A new button has been introduced in Table-12, “Download HSN codes list ”

6) The button for “Product Name as in My Master” has been made searchable.