Taxpayers having Turnover up to Rs 5 crore shall mention 4-digit HSN codes in GSTR-1 from 1st November: GST Portal
- Vide Notification No. 78/2020 – Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digit or 6 digit of HSN Code in table-12 of GSTR-I on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. To view the detailed notification please click here.
- To facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal as below:
| Phases | Taxpayers with AATO of up- to 5 cr | Taxpayers with AATO of more than 5 cr. | |
| Taxpayers are required to | Taxpayers are required to mandatorily | ||
| mandatorily report 2-digit HSN | report 4-digit HSN codes for goods & | ||
| codes for goods & services. | services. | ||
| Manual user entry is allowed for | Manual user entry is allowed for | ||
| entering HSN or description and | entering HSN or description and | ||
| Part I | warning or alert message shall be shown in case of manual HSN. | warning or alert message shall be shown in case of incorrect HSN code. | |
| Phase 1 | However, taxpayers will be able to file GSTR-1 after manual entry. | However, taxpayers will be able to file GSTR-1 after manual entry. | |
| Part II | Same as above | Taxpayers will now have to mandatory report 6-digit HSN code. | |
| No change in other conditions | |||
| Phase 2 | Mandatory reporting of HSN at 4-digits; | No change | |
| Phase 3-4 | To be communicated in due course. |
3. Part I & Part II of Phase 1 has already been implemented from 01st April 2022 & 01st August 2022 respectively and is currently live on GST Portal. From 01st November, 2022, Phase-2 would be implemented on GST Portal and the taxpayers would need to report HSN in table 12 of GSTR-1 as per below mentioned scheme.
| Taxpayers with AATO of up-to 5 cr | Taxpayers with AATO of more than 5 cr. |
| (i) Taxpayers would be required to mandatorily report 4-digit HSN code. (ii) Manual user entry would be allowed for entering HSN or description and in case of a wrong HSN reported a warning or alert message will be shown. However, taxpayers will still be able to file GSTR-1 | To continue as it is. |
4. The taxpayers are advised to correct the HSN details where there is an error and a warning message is shown. However, it is not a mandatory validation for filing GSTR-1.
5. Further phases would be implemented on GST Portal shortly and respective dates of implementation and nature of change would be updated from time to time.
