Mandatory Reporting of HSN Codes in GSTR-1/1A (Phase-3): Key Changes You Must Know

📢 Mandatory Reporting of HSN Codes in GSTR-1/1A (Phase-3): Key Changes You Must Know

As per the latest GSTN advisory dated 11th April 2025, major changes have been introduced under Phase-III of the GSTR-1 & GSTR-1A filing process, effective from the April 2025 tax period. These updates are focused on enhancing data accuracy, standardizing HSN (Harmonized System of Nomenclature) reporting, and minimizing manual errors.

If you’re a registered taxpayer under GST, here’s everything you need to know about mandatory HSN code reporting and the document requirements in the latest update.

📌 Subject: GSTN Implements Phase-3 Changes in GSTR-1 & GSTR-1A from April 2025

🔍 Key Highlights of Phase-3 Changes

✅ 1. Segregation of Table-12: B2B and B2C

1. Table-12 of GSTR-1 and GSTR-1A is now split into two sections:
2. B2B (Business-to-Business)
3. B2C (Business-to-Consumer)
4. Each section requires HSN-wise summary reporting of outward supplies.

✅ 2. Mandatory HSN Code Selection from Dropdown

1. Manual entry of HSN codes is no longer permitted.
2. Taxpayers must now select HSN codes from a system-generated dropdown list, ensuring standardization and reducing discrepancies.

✅ 3. Purpose of This Change

1. Improve data accuracy and interoperability across GST systems.
2. Enable better analytics and fraud detection by GST authorities.
3. Simplify reconciliation for both suppliers and recipients.

📋 Document List for Accurate Reporting

To ensure correct filing under the new structure, keep the following documents and data ready:

🗂️ Essential Data:

1. Product-wise HSN codes as per turnover criteria.
2. Tax rates associated with each product/service.

📄 Required Documents:

1. Invoice details for all outward supplies

2. Debit and credit notes

3. B2B and B2C sales data segregated appropriately

4. HSN Summary Reports from your accounting system

5. GST-compliant accounting software outputs (if applicable)

🚀 ThinkBizFilings Pro Tip:

1. Update your accounting software with the correct HSN code mapping.
2. Verify your product master to match the GSTN dropdown options.
3. Refer to the GSTN advisory dated 22nd January 2025 for detailed implementation guidelines.

📅 Effective Date: From April 2025 Tax Period Onwards

Ensure compliance starting with your GSTR-1 filing due in May 2025 for the April period.

📝 Need Help?

At ThinkBizFilings, our GST experts can help you:

1. Map HSN codes accurately
2. Prepare and file GSTR-1/1A with 100% compliance
3. Avoid common errors that may lead to mismatches or notices

📢 Stay compliant and file with confidence!
📞 Connect with ThinkBizFilings today for smooth and error-free GST filing.