Since May 2025, the GST system in India has gotten a much-needed upgrade — and it's all about how businesses report HSN codes in GSTR-1 filings. If you’re a GST-registered business, this isn’t just another rule. It’s a shift towards smarter compliance, cleaner records, and fewer headaches.

At TAX360, we’ve got your back. Here’s what’s changing and how we make sure you stay ahead of the curve.

What’s New in HSN Code Reporting?

Dropdown Selection – No More Manual HSN Entry

From May 2025, manual entry of HSN codes in Table 12 of GSTR-1 is no longer allowed. Taxpayers must now select HSN codes from a predefined drop-down list.

• This change ensures standardized descriptions and avoids classification errors.
• Once selected, the "Description as per HSN Code" auto-fills based on the GSTN database.

Compliance made it easier.

Clearer Classification: Separate Tabs for B2B and B2C Supplies

Table 12 now splits your data into two separate tabs:

• B2B (Business-to-Business)
• B2C (Business-to-Consumer)

This change helps in better transaction classification and simplifies review and compliance.

Auto-Validation of Reported Data

A validation mechanism is now active (currently in warning mode). It cross-verifies Table 12 values with other key sections like Tables 4A, 4B, 6B, and 6C.

• Errors won’t stop filing for now, but warnings will flag inconsistencies to prevent future scrutiny or rejection.

Stay alert. Stay clean.

New Functionalities for Better Usability

GSTN has rolled out features to make your HSN filing easier:

• Download HSN List: Get an Excel file of all valid HSN/SAC codes with descriptions.
• Search via Product Name: Search your own item master data and auto-populate relevant HSN info, including Unit Quantity Code (UQC).



Who Must Report and How Much?

Here’s a simple chart to follow:

Why This Update Actually Helps You

These changes aren’t just about rules—they’re about relief:

• Fewer Errors: Standardized HSN ensures consistency.
• Stronger ITC Claims: Clean HSN reporting reduces mismatches in credit.
• Audit-Ready: Clear B2B/B2C classification makes your filings audit-proof.
• Faster Filing: With searchable and downloadable tools, you can file GSTR-1 quicker and with more accuracy.

A Note from TAX360

This update is a win for businesses that want to stay compliant without confusion. At TAX360, our systems are already optimized for these new rules. Whether you're new to GST or a seasoned filer, we make it seamless, accurate, and stress-free.

Need help adapting?

Our expert team is ready to guide you, automate your filings, and keep your business 100% compliant.

Explore GST Filing with TAX360 @SNC’s tax360.asncuniverse.com website.