GSTR-1: Portal updates to Table 12 due to changes in HSN code

The GST Network (GSTN) has introduced an important change for all the regular taxpayers to note. Table 12 of GSTR-1 has been reformatted on the government portal or the GST portal. This table requires the reporting of an HSN-wise summary of outward supplies. 

The update was posted on the “GST Tech” official Twitter handle, managed by the GSTN. As per the update, the field “Total Value” in column (6) of Table 12 of GSTR-1 stands removed from 1st April 2021. Instead, a new entry has been made in the same column. The taxpayers must select the “Rate of Tax” from the dropdown in column (6) of Table 12 from FY 2021-22. It means the taxpayers must henceforth report HSN details GST rate-wise mandatorily.  

The change has been introduced in relation to the mandatory reporting of HSN codes while preparing the GSTR-1 return from 1st April 2021. According to the revised declaration, taxpayers with an annual aggregate turnover of more than Rs.5 crore must compulsorily declare six digits of the HSN code on all the tax invoices. The turnover must be referred to the previous financial year, i.e. for reporting an invoice in FY 2021-22, one must refer to the turnover of FY 2020-21.

On the other hand, those taxpayers who have an annual turnover of up to Rs.5 crore must report four digits of the HSN code on B2B invoices. In contrast, this rule of minimum reporting is made optional on B2C invoices.

The respective notifications for the above changes have already been issued by the Central Board of Indirect Taxes and Customs (CBIC) on 15th October 2020. The Central Tax notification number 78/2020 deals with the length of the HSN code to be reported from 1st April 2021. Whereas the Central Tax notification number 79/2020 notifies the change in the format of Form GSTR-1.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in