GST Update May 2025: New Rules for HSN Code Reporting and Document Details in GSTR-1

Introduction

The Goods and Services Tax Network (GSTN) has released an important advisory regarding changes in Table 12 and Table 13 of GSTR-1 and GSTR-1A, effective from the return period May 2025. These updates are part of the ongoing phase-wise implementation of stricter compliance and validation mechanisms related to HSN code reporting and document tracking.

 Background: HSN Code Reporting Mandate

The requirement to report minimum 4-digit or 6-digit HSN Codes in Table 12 of GSTR-1 is not new. It was first introduced through Notification No. 78/2020 – Central Tax dated 15th October 2020, and gradually rolled out through phases on the GST portal.

Now, with Phase-3, new validations and restrictions will become applicable from the May 2025 return period onwards.

 Key Highlights of the Latest Advisory:-

 1. Mandatory Selection of HSN Codes from Dropdown

• Manual entry of HSN codes will no longer be allowed.
• Taxpayers must select the HSN code from a dropdown list only.
• Once selected, the system will auto-fill the description as per the official HSN Master.

 2. Turnover-Based HSN Reporting Rules (Continued from Phase-2)

 3. Validation of Supply Values Across Tables

The portal will now cross-verify the values of B2B and B2C supplies reported in Table 12 with other relevant tables like 4A, 6B, 9B, 5A, 7A, etc.

Key Points:

• Validation will check for mismatch in values between Table 12 and other supply tables.
• Currently, these validations are in warning mode—returns can still be filed despite warnings.
• B2B tab in Table 12 cannot be left empty if B2B supplies are reported elsewhere.

4. Enhancements in Table 12 Interface

• Table 12 is now split into two tabs:
  • B2B Supplies
  • B2C Supplies
• New “Download HSN Code List” Button: Allows downloading an Excel list of all updated HSN/SAC codes.
• Enhanced “My Master” Functionality:
  • Taxpayers can search for product names in their HSN Master.
  • On selection, details like HSN Code, UQC, Quantity, and Description will auto-fill.
  • This remains an optional feature.

 Table 13 Becomes Mandatory!

From May 2025, filing of Table 13 of GSTR-1/1A is compulsory. This table contains details of documents issued (like invoices, credit notes, etc.).

Important Notes:

• If B2B or B2C supplies are reported anywhere in the return but Table 13 is left blank, an error will occur, and the return cannot be filed.
• Ensure Table 13 is filled before submission of the return.

Summary of Impact for Taxpayers

 Action Points for Taxpayers

1. Update your invoicing systems to match the HSN code structure and description as per the GST portal.
2. Review Table 12 and 13 carefully before filing your GSTR-1 from May 2025 onwards.
3. Train your staff/accountants to avoid manual errors and understand the new dropdown and validation rules.
4. Use the “Download HSN List” feature to stay updated on valid codes.
5. Start maintaining document records in a structured format for seamless entry in Table 13.

 Conclusion

This advisory aims to enhance data consistency, compliance, and automation in GST filings. While the current validations are in warning mode, stricter enforcement can be expected in future phases.

Staying compliant and well-prepared for these changes will help avoid return filing errors and possible scrutiny.