The Goods and Services Tax Network ( GSTN ) has announced the implementation of Phase 3 for reporting Harmonized System of Nomenclature ( HSN ) codes in Table 12 of GSTR-1/1A, effective from the May 2025 return period. Simultaneously, Table 13 of the return form, which mandates the listing of supporting documents, will also become compulsory for all taxpayers. This move aims to streamline compliance and enhance transparency under the GST regime. As per Notification No. 78/2020 – Central Tax dated October 15, 2020, taxpayers are required to report a minimum of 4 or 6 digits of HSN codes in Table 12 of GSTR-1, depending on their Aggregate Annual Turnover (AATO) in the preceding financial year.

The mandate, introduced to standardize tax reporting and improve data accuracy, has been rolled out in phases. Phase 2, implemented on November 1, 2022, extended HSN requirements to smaller taxpayers. Analyzing the Law Behind the Tax – Click Here Under Phase 3, starting May 2025, the GST Portal will enforce stricter validations to ensure compliance. Taxpayers with an AATO above ₹5 crore must report 6-digit HSN codes, while those with turnover up to ₹5 crore must provide 4-digit codes. In a significant update, Table 13 of GSTR-1/1A, which lists invoices and related documents, will now be compulsory. Previously optional, this table requires taxpayers to provide detailed information on documents issued during the tax period, including invoices, credit/debit notes, and delivery challans. The GSTN stated that this change will improve audit trails and facilitate smoother inter-state transactions.

The GSTN has urged businesses to review their systems and update HSN codes in their accounting software to avoid filing errors. Taxpayers are advised to cross-verify turnover data from previous financial years to determine the applicable HSN digit requirement. GST Rulings Change Fast! Stay updated, stay compliant – Click Here For detailed guidelines, the GSTN has directed taxpayers to access the advisory document on the GST Portal here. Failure to comply with the updated reporting standards may attract scrutiny or penalties under GST laws. As the May 2025 deadline approaches, taxpayers must prioritize transitioning to the new requirements to ensure uninterrupted compliance and avoid operational disruptions.