{"id":9169,"date":"2025-06-15T19:23:46","date_gmt":"2025-06-15T19:23:46","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=9169"},"modified":"2026-01-11T05:22:59","modified_gmt":"2026-01-11T05:22:59","slug":"hsn-code-requirements-based-on-annual-turnover","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/hsn-code-requirements-based-on-annual-turnover\/","title":{"rendered":"HSN Code Requirements Based on Annual Turnover"},"content":{"rendered":"<h2 data-start=\"180\" data-end=\"236\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-9910\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/HSN.jpeg\" alt=\"HSN\" width=\"1150\" height=\"641\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/HSN.jpeg 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/HSN-300x167.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/HSN-768x428.jpeg 768w\" sizes=\"(max-width: 1150px) 100vw, 1150px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dac01c5ba60\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dac01c5ba60\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/hsn-code-requirements-based-on-annual-turnover\/#HSN_Code_Requirements_Based_on_Annual_Turnover\" title=\"HSN Code Requirements Based on Annual Turnover\">HSN Code Requirements Based on Annual Turnover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/hsn-code-requirements-based-on-annual-turnover\/#GSTR-1_Table_12_Bifurcation_Validation_Rules_Effective_May_2025\" title=\"GSTR-1 Table 12: Bifurcation &amp; Validation Rules (Effective May 2025)\">GSTR-1 Table 12: Bifurcation &amp; Validation Rules (Effective May 2025)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/hsn-code-requirements-based-on-annual-turnover\/#Clarification_on_Table_12_HSN_of_GSTR-1\" title=\"Clarification on Table 12 (HSN) of GSTR-1\">Clarification on Table 12 (HSN) of GSTR-1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/hsn-code-requirements-based-on-annual-turnover\/#Key_Update_Bifurcation_of_Table_12\" title=\"Key Update: Bifurcation of Table 12\">Key Update: Bifurcation of Table 12<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/hsn-code-requirements-based-on-annual-turnover\/#HSN_Summary_Reporting_Rules_Post-Bifurcation\" title=\"HSN Summary Reporting Rules Post-Bifurcation\">HSN Summary Reporting Rules Post-Bifurcation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/hsn-code-requirements-based-on-annual-turnover\/#Key_Takeaways_for_Taxpayers\" title=\"Key Takeaways for Taxpayers\">Key Takeaways for Taxpayers<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"180\" data-end=\"236\"><span class=\"ez-toc-section\" id=\"HSN_Code_Requirements_Based_on_Annual_Turnover\"><\/span><span style=\"color: #000080;\"><strong data-start=\"186\" data-end=\"236\">HSN Code Requirements Based on Annual Turnover<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Below Summary table showing the requirement of HSN code reporting under GST based on a taxpayer\u2019s annual turnover<\/p>\n<div class=\"_tableContainer_16hzy_1\">\n<div class=\"_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" style=\"height: 224px;\" width=\"1076\" data-start=\"238\" data-end=\"798\">\n<thead data-start=\"238\" data-end=\"328\">\n<tr data-start=\"238\" data-end=\"328\">\n<th data-start=\"238\" data-end=\"282\" data-col-size=\"sm\"><span style=\"color: #000080;\"><strong data-start=\"240\" data-end=\"271\">Annual Turnover of Taxpayer<\/strong><\/span><\/th>\n<th data-start=\"282\" data-end=\"328\" data-col-size=\"md\"><span style=\"color: #000080;\"><strong data-start=\"284\" data-end=\"308\">HSN Code Requirement<\/strong><\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"421\" data-end=\"798\">\n<tr data-start=\"421\" data-end=\"516\">\n<td data-start=\"421\" data-end=\"465\" data-col-size=\"sm\">Up to INR 1.50 crore<\/td>\n<td data-col-size=\"md\" data-start=\"465\" data-end=\"516\">Optional\u2014HSN code reporting not mandatory<\/td>\n<\/tr>\n<tr data-start=\"517\" data-end=\"610\">\n<td data-start=\"517\" data-end=\"561\" data-col-size=\"sm\">INR 1.50 crore to INR 5.00 crore<\/td>\n<td data-col-size=\"md\" data-start=\"561\" data-end=\"610\">2-digit HSN code must be mentioned<\/td>\n<\/tr>\n<tr data-start=\"611\" data-end=\"704\">\n<td data-start=\"611\" data-end=\"655\" data-col-size=\"sm\">Above \u20b95.00 crore<\/td>\n<td data-col-size=\"md\" data-start=\"655\" data-end=\"704\">4-digit HSN code must be mentioned<\/td>\n<\/tr>\n<tr data-start=\"705\" data-end=\"798\">\n<td data-start=\"705\" data-end=\"749\" data-col-size=\"sm\">Dealers of imports or exports<\/td>\n<td data-col-size=\"md\" data-start=\"749\" data-end=\"798\">8-digit HSN code is mandatory<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"sticky end-(--thread-content-margin) h-0 self-end select-none\">\n<div class=\"absolute end-0 flex items-end\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<ul>\n<li data-start=\"821\" data-end=\"885\">Phase-3 of HSN Code reporting in Table 12 of GSTR-1\/1A begins May 2025, based on AATO (4\/6 digits mandatory). Table 13 (document-wise details) is also now mandatory from the same period. These changes are part of the ongoing phased implementation for better compliance and data accuracy.<\/li>\n<li data-start=\"821\" data-end=\"885\">These rules apply to GSTR-1 filing and invoice issuance.\u00a0Even if optional for smaller taxpayers, reporting HSN codes can reduce mismatches and aid buyers in ITC claims.\u00a0For export\/import transactions, 8-digit HSN is required to align with customs classification.<\/li>\n<li data-start=\"821\" data-end=\"885\">GST taxpayers must ensure correct classification of services &amp; goods and applicable GST tax rates.<\/li>\n<\/ul>\n<h2 data-start=\"203\" data-end=\"281\"><span class=\"ez-toc-section\" id=\"GSTR-1_Table_12_Bifurcation_Validation_Rules_Effective_May_2025\"><\/span><span style=\"color: #000080;\"><strong data-start=\"209\" data-end=\"281\">GSTR-1 Table 12: Bifurcation &amp; Validation Rules (Effective May 2025)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9171\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-23-41.jpg\" alt=\"CBIC Clarifications on Understanding HSN Code Reporting in GSTR-1\" width=\"1219\" height=\"2131\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-23-41.jpg 732w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-23-41-172x300.jpg 172w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-23-41-586x1024.jpg 586w\" sizes=\"(max-width: 1219px) 100vw, 1219px\" \/><\/p>\n<h3 data-start=\"249\" data-end=\"296\"><span class=\"ez-toc-section\" id=\"Clarification_on_Table_12_HSN_of_GSTR-1\"><\/span><span style=\"color: #000080;\">Clarification on Table 12 (HSN) of GSTR-1<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Official clarification by GST Tech regarding Table 12 (HSN Summary) of GSTR-1, specifically addressing issues faced by taxpayers with only B2C supplies.\u00a0GSTN clarified that Table 12B (B2C HSN Summary) is <em data-start=\"357\" data-end=\"372\">not mandatory<\/em>. It can be left blank or filled with any value.<\/li>\n<li data-start=\"443\" data-end=\"470\"><span style=\"color: #000080;\"><strong>Issue Identified:<\/strong>\u00a0<\/span><span style=\"font-size: 16px;\">GST Taxpayers with <\/span>only B2C sales<span style=\"font-size: 16px;\"> face system issues <\/span>if Table 12A (B2B HSN Summary)<span style=\"font-size: 16px;\"> is <\/span>left blank<span style=\"font-size: 16px;\">. <\/span><span style=\"font-size: 16px;\">This happens <\/span>when there is an entry in Table 8<span style=\"font-size: 16px;\"> (i.e., the system expects something in 12A if Table 8 has data).<\/span><\/li>\n<li data-start=\"704\" data-end=\"745\"><span style=\"color: #000080;\"><strong>Temporary Solution:<\/strong><\/span> <span style=\"font-size: 16px;\">If you have <\/span><span style=\"font-size: 16px;\">no B2B supplies<\/span><span style=\"font-size: 16px;\">: GST taxpayers still need to <\/span><span style=\"font-size: 16px;\">enter at least one row<\/span><span style=\"font-size: 16px;\"> in <\/span><span style=\"font-size: 16px;\">Table 12A<\/span><span style=\"font-size: 16px;\">. For that Use <\/span><span style=\"font-size: 16px;\">any HSN code<\/span><span style=\"font-size: 16px;\"> and <\/span><span style=\"font-size: 16px;\">any UQC<\/span><span style=\"font-size: 16px;\">\u00a0required Fill <\/span><span style=\"font-size: 16px;\">all other values (e.g., quantity, taxable value, tax amount)<\/span><span style=\"font-size: 16px;\"> as <\/span><span style=\"font-size: 16px;\">\u201c0\u201d<\/span><span style=\"font-size: 16px;\">. <\/span><span style=\"font-size: 16px;\">This prevents errors and allows submission to proceed.<\/span><\/li>\n<\/ul>\n<p>GSTR-1 Table 12 bifurcation and validations, as per the CBIC clarification and GSTN advisory dated May 1, 2025<\/p>\n<h3 data-start=\"283\" data-end=\"329\"><span class=\"ez-toc-section\" id=\"Key_Update_Bifurcation_of_Table_12\"><\/span><span style=\"color: #000080;\"><strong data-start=\"290\" data-end=\"329\">Key Update: Bifurcation of Table 12<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"332\" data-end=\"398\">Table 12 of GSTR-1\/1A is now split into two distinct tabs B2B Supplies and B2C Supplies.<\/li>\n<li data-start=\"455\" data-end=\"491\">New Validations Introduced :\u00a0The system will match HSN-wise values reported in Table 12 with other tables in the return to Ensure data consistency. and Prevent under-reporting\/misreporting<\/li>\n<\/ul>\n<h3 data-start=\"676\" data-end=\"730\"><span class=\"ez-toc-section\" id=\"HSN_Summary_Reporting_Rules_Post-Bifurcation\"><\/span><span style=\"color: #000080;\"><strong data-start=\"682\" data-end=\"730\">HSN Summary Reporting Rules Post-Bifurcation<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"732\" data-end=\"779\">B2B Supplies (Table 12A) \u2013 Mandatory :\u00a0HSN summary is <em data-start=\"801\" data-end=\"812\">mandatory<\/em>. Taxpayer Ensure correct HSN code, unit of quantity (UQC), and value is reported for every B2B supply.\u00a0System validations are in place to cross-check with other tables.<\/li>\n<li data-start=\"1001\" data-end=\"1068\">B2C Supplies (Table 12B) \u2013 Optional for Small Businesses : HSN summary is optional for taxpayers with aggregate turnover up to INR 5 crore in the previous financial year. Based on Notification No. 12\/2017-Central Tax (as amended), GST taxpayer can enter any value or leave Table 12B blank. The system will not throw an error.<\/li>\n<li data-start=\"1001\" data-end=\"1068\">Rationale Behind B2C Flexibility :\u00a0As HSN reporting for B2C is not mandatory for smaller taxpayers, the system does not enforce Table 12B.\u00a0This aligns with practical challenges and simplifies compliance.<\/li>\n<\/ul>\n<h3 data-start=\"1596\" data-end=\"1633\"><span class=\"ez-toc-section\" id=\"Key_Takeaways_for_Taxpayers\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1602\" data-end=\"1633\">Key Takeaways for Taxpayers<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2 data-start=\"180\" data-end=\"236\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-9170\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-26-10.jpg\" alt=\"HSN Code\" width=\"1080\" height=\"789\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-26-10.jpg 1080w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-26-10-300x219.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-26-10-1024x748.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-26-10-768x561.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/06\/photo_2025-06-16_00-26-10-800x584.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/h2>\n<div class=\"_tableContainer_16hzy_1\">\n<div class=\"_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"1635\" data-end=\"2784\">\n<thead data-start=\"1635\" data-end=\"1797\">\n<tr data-start=\"1635\" data-end=\"1797\">\n<th data-start=\"1635\" data-end=\"1678\" data-col-size=\"sm\"><span style=\"color: #000080;\"><strong data-start=\"1637\" data-end=\"1652\">Action Item<\/strong><\/span><\/th>\n<th data-start=\"1678\" data-end=\"1718\" data-col-size=\"sm\"><span style=\"color: #000080;\"><strong data-start=\"1680\" data-end=\"1694\">Applies to<\/strong><\/span><\/th>\n<th data-start=\"1718\" data-end=\"1797\" data-col-size=\"md\"><span style=\"color: #000080;\"><strong data-start=\"1720\" data-end=\"1731\">Details<\/strong><\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"1962\" data-end=\"2784\">\n<tr data-start=\"1962\" data-end=\"2125\">\n<td data-start=\"1962\" data-end=\"2005\" data-col-size=\"sm\">Report HSN in Table 12A<\/td>\n<td data-col-size=\"sm\" data-start=\"2005\" data-end=\"2045\">All B2B taxpayers<\/td>\n<td data-col-size=\"md\" data-start=\"2045\" data-end=\"2125\">Mandatory for every B2B supply<\/td>\n<\/tr>\n<tr data-start=\"2126\" data-end=\"2292\">\n<td data-start=\"2126\" data-end=\"2169\" data-col-size=\"sm\">Table 12B is optional<\/td>\n<td data-col-size=\"sm\" data-start=\"2169\" data-end=\"2212\">B2C-only taxpayers with turnover \u2264\u00a0 INR 5 Cr<\/td>\n<td data-col-size=\"md\" data-start=\"2212\" data-end=\"2292\">May leave blank or fill any value<\/td>\n<\/tr>\n<tr data-start=\"2293\" data-end=\"2456\">\n<td data-start=\"2293\" data-end=\"2336\" data-col-size=\"sm\">Understand bifurcation of Table 12<\/td>\n<td data-col-size=\"sm\" data-start=\"2336\" data-end=\"2376\">All taxpayers<\/td>\n<td data-col-size=\"md\" data-start=\"2376\" data-end=\"2456\">B2B and B2C now reported separately<\/td>\n<\/tr>\n<tr data-start=\"2457\" data-end=\"2620\">\n<td data-start=\"2457\" data-end=\"2500\" data-col-size=\"sm\">Use placeholder in 12A if needed<\/td>\n<td data-col-size=\"sm\" data-start=\"2500\" data-end=\"2540\">B2C-only filers<\/td>\n<td data-col-size=\"md\" data-start=\"2540\" data-end=\"2620\">Use dummy HSN + UQC + 0s to pass validation if Table 8 has entries<\/td>\n<\/tr>\n<tr data-start=\"2621\" data-end=\"2784\">\n<td data-start=\"2621\" data-end=\"2664\" data-col-size=\"sm\">Stay informed<\/td>\n<td data-col-size=\"sm\" data-start=\"2664\" data-end=\"2704\">All taxpayers<\/td>\n<td data-col-size=\"md\" data-start=\"2704\" data-end=\"2784\">Follow GSTN advisories and CBIC notifications for updates<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"absolute end-0 flex items-end\">\n<p>System Upgrade Notice: The GST system will be upgraded soon to simplify this. The aim is to remove the requirement for Table 12A entries when only B2C supplies are involved.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>HSN Code Requirements Based on Annual Turnover Below Summary table showing the requirement of HSN code reporting under GST based on a taxpayer\u2019s annual turnover Annual Turnover of Taxpayer HSN Code Requirement Up to INR 1.50 crore Optional\u2014HSN code reporting not mandatory INR 1.50 crore to INR 5.00 crore 2-digit HSN code must be mentioned &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[933],"tags":[1175],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9169"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=9169"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9169\/revisions"}],"predecessor-version":[{"id":9911,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9169\/revisions\/9911"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=9169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=9169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=9169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}