In an effort to enhance the quality of data and streamline GST compliance, the Government has been gradually implementing stricter reporting requirements for taxpayers filing GSTR-1/1A. A significant step in this direction was Notification No. 78/2020 – Central Tax, dated 15th October 2020, which mandated taxpayers to report a minimum of 4 or 6 digits of HSN codes in Table 12 of GSTR-1, based on their Aggregate Annual Turnover (AATO) in the preceding financial year.
Background: Phase-wise Implementation of HSN Code Reporting
To ease the transition for taxpayers, the GST Portal initiated a phase-wise implementation of these requirements:
Phase 1: Initial voluntary compliance by taxpayers.
Phase 2: Effective from 01st November 2022, mandatory compliance based on AATO thresholds.
Phase 3: Now set to be implemented from the May 2025 return period.
Key Updates Effective May 2025 Return Period
1. Mandatory Reporting of HSN Codes in Table 12
From the May 2025 tax period onwards, taxpayers must ensure accurate and complete reporting of HSN codes in Table 12 of GSTR-1 and GSTR-1A. The requirement will be enforced based on the taxpayer’s AATO in the previous financial year:
AATO up to ₹5 crore: Minimum 4-digit HSN
AATO above ₹5 crore: Minimum 6-digit HSN
This ensures uniform classification and helps the authorities in better analytics and fraud detection.
2. Mandatory Filling of Table 13 – Document Details
In addition to HSN reporting, Table 13 of GSTR-1/1A—which captures document-wise details like invoices, credit notes, debit notes, and other relevant records—is also being made mandatory from the May 2025 return period. This aims to enhance document-level traceability and improve the accuracy of return data.
What Needs to Be Done?
Verify your AATO for the previous year and ensure your accounting systems are aligned with the required HSN code digits.
Update ERP/accounting software to reflect correct HSN codes as per turnover category.
Ensure document tracking is in place to meet the requirements of Table 13.
Train your staff and coordinate with tax consultants to avoid discrepancies during filing.
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Notification Reference: GSTN
01/05/2025