GST Update May 2025: Mandatory HSN Code & Document Reporting in GSTR-1

 GST Update May 2025: Mandatory Reporting of HSN Codes in Table 12 and Documents in Table 13 of GSTR-1/1A

What’s New?

The Goods and Services Tax Network (GSTN) has announced the Phase-3 implementation of mandatory reporting of HSN codes in Table 12 and document details in Table 13 of GSTR-1/1A, effective from the May 2025 return period. This move aims to streamline tax data, improve compliance, and enhance transparency in the filing process.

Background

As per Notification No. 78/2020 – Central Tax dated 15th October 2020, businesses are required to report either 4-digit or 6-digit HSN (Harmonized System of Nomenclature) codes in GSTR-1, depending on their Aggregate Annual Turnover (AATO) in the preceding financial year.

This requirement has been rolled out in phases:

  • ✅ Phase 1: Initial roll-out
  • ✅ Phase 2: Implemented from 1st November 2022
  • ✅ Phase 3: Now live from May 2025 return period

Key Highlights of Phase-3

1️ ⃣ HSN Code Reporting – Table 12

  • Mandatory 4/6-digit HSN code reporting continues for all taxpayers.
  • The level of detail (4 or 6 digits) is determined based on the taxpayer’s turnover.
  • Table 12 of GSTR-1 must now be filled with accurate product classifications, ensuring proper tax applicability and compliance.

2️ ⃣ Document Reporting – Table 13

  • Table 13, previously optional, is now mandatory from the May 2025 return onwards.
  • Taxpayers must provide a summary of issued documents (invoices, debit/credit notes, etc.).
  • This table helps the GST department reconcile issued documents with tax liabilities.

Compliance Checklist for Taxpayers

? Identify your AATO to determine the applicable level of HSN digit reporting 
? Ensure your ERP or billing system is updated to reflect correct HSN codes 
? Prepare a list of all outward supply documents for inclusion in Table 13 
? Train your finance and GST team on the new mandatory requirements 
? Avoid non-compliance penalties by ensuring accurate reporting

Why This Matters

This change enhances:

  • Data accuracy for tax audits and departmental assessments
  • Interoperability between systems (invoice matching, e-invoicing, etc.)
  • Ease of input tax credit (ITC) validation for recipients
  • Better analytics and fraud detection capabilities for GSTN

Final Words

The Phase-3 rollout is a crucial milestone in India's GST framework. Taxpayers must embrace these changes proactively and ensure that their systems and teams are fully aligned. Early action can prevent future penalties and foster smoother compliance.