HSN- Business to Consumer (B2C)

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From May 2024, all businesses must report HSN codes for Business-to-Consumer (B2C) supplies in their GSTR1 returns. The previous exemption for businesses with a turnover under £5 crore has been removed. Now, businesses with a turnover up to £5 crore must report a 4-digit HSN, while those above £5 crore require a 6-digit HSN.

Pooja Mehta

Pooja Mehta (Querist)
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21 May 2025 Dear Members,

HSN for B2C supplies have to be reported in GSTR1 from May period. My query is that earlier there was an exemption that who had turnover below 5 crore, it was optional to report HSN in B2C, after the advisory in Feb 2025 is it removed or the new change to report HSN for B2C is only for turnover above 5 crore? It is not clearly mentioned
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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 May 2025 Key Changes Effective from May 2024 GST Return (GSTR-1):
Mandatory HSN Reporting for B2C Supplies
All taxpayers, regardless of turnover, must report at least 4-digit HSN codes for B2C supplies in GSTR-1.
Earlier, businesses with turnover below ₹5 crore were exempt from reporting HSN for B2C invoices, but this exemption has been withdrawn.

Turnover-Based HSN Digit Requirement
Up to ₹5 crore turnover: 4-digit HSN is mandatory.
Above ₹5 crore turnover: 6-digit HSN is required.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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