HSN summary below 5Crore

For taxpayers with an Aggregate Annual Turnover (AATO) of up to ₹5 crore, the requirements for HSN summary reporting in GSTR-1 are as follows:

HSN Reporting Requirements (AATO up to ₹5 crore)

• Mandatory HSN Digits: You are required to report a minimum of 4-digit HSN codes in the HSN summary table (Table 12) of GSTR-1.

• B2B Supplies: Reporting the HSN summary for B2B supplies is mandatory.

• B2C Supplies: HSN reporting for B2C supplies is generally considered optional or flexible for smaller taxpayers (up to ₹5 crore). In practice, you may leave the B2C section of Table 12 blank or report it, as the system does not enforce strict validation for B2C HSN summaries for this turnover bracket.

• Documentation (Table 13): As of May 2025, reporting the Document Summary in Table 13 of GSTR-1 is mandatory for all taxpayers, regardless of turnover.

Key Compliance Tips

• Dropdown Selection: As of the latest system updates (Phase 3), manual entry of HSN codes is no longer allowed. You must select the appropriate HSN code from the dropdown menu provided on the GST portal.

• Record Keeping: Even if your books are not computerized, it is recommended to maintain a simple register or ledger that categorizes your sales by HSN code and tax rate to ensure that when you file your GSTR-1, you have the necessary data to comply with the mandatory 4-digit requirement for B2B transactions.

• Consistency: While B2C HSN reporting is flexible, maintaining a consistent HSN classification in your internal records helps in accurately determining the tax liability and simplifies the filing process for your GSTR-1.

Summary: For businesses with a turnover up to ₹5 crore, you must report at least 4-digit HSN codes for B2B supplies in Table 12 of GSTR-1. Reporting HSN for B2C supplies is optional and can generally be left blank. Ensure you select HSN codes from the GST portal's dropdown menu and complete the mandatory Document Summary in Table 13.

GSTR-1 HSN & Document Rules Explained

This video provides a helpful overview of the recent changes to GSTR-1 filings, including the new HSN and document summary requirements. GSTR-1 Table 12 and 13 Updates