The Goods and Service Tax Network on 20th July 2022, has implemented, mandatory mentioning of 4 digits or 6 digits of HSN Code in a phase-wise manner on GST Portal. Part 1 of Phase I has already been implemented from 01st April 2022 and is currently live on GST Portal
In the First Phase, GSTN has mandated the taxpayers with Annual Aggregate Turnover (AATO) of upto 5 crores, shall report 2-digit HSN codes for goods & services. Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of manual HSN. However, taxpayers will be able to file GSTR-1 after manual entry.
Taxpayers with AATO more than 5 crores, shall report 4-digit HSN codes for goods & services. Manual user entry is allowed for entering HSN or description and warning or alert message shall be shown in case of incorrect HSN code. However, taxpayers will be able to file GSTR-1 after manual entry.
From 01st August 2022, Part-II of Phase-I 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 more than 5 crore, shall mandatorily report 6-digit HSN code. The Manual user entry would be allowed for entering HSN or description and in case of a wrong HSN reported warning or alert message will be shown. However, taxpayers will still be able to file GSTR-1. Taxpayers would be expected to correct HSN where there is an error and a warning message shown.
