Every GSTR-1 filed on the GST portal includes Table 12: HSN-wise summary of outward supplies. It is not an optional section — it is mandatory, and from May 2024 it enforces strict B2B/B2C bifurcation with no manual HSN entry allowed. Getting Table 12 right is critical to filing GSTR-1 successfully and ensuring your buyers can claim ITC without reconciliation problems.
This guide covers everything: what Table 12 is, the digit requirements that changed in FY 2025-26, the Phase III reforms from May 2024, common HSN codes across Indian industries, and how LekhaBooks auto-populates Table 12 from your invoice data.
What is Table 12 in GSTR-1?
Table 12 in GSTR-1 is the HSN/SAC-wise summary of all outward supplies made during the tax period. Rather than listing individual invoices, Table 12 aggregates your sales at the HSN code level — summing up the total quantity, total value, taxable value, and the GST components (IGST, CGST, SGST, and Cess) for every unique HSN or SAC code in your invoices.
Think of it as a pivot table of your sales by product/service classification. If you sold 500 units under HSN 6109 (T-shirts) and 200 units under HSN 6203 (men's trousers), Table 12 shows two rows — one for each HSN — with aggregated quantities, values, and GST for each.
Auto-populated from invoice data: Table 12 does not need to be filled manually. The GST portal auto-aggregates HSN data from invoices entered in Tables 4 (B2B), 5 (B2C Large), 6 (exports), 7 (B2C Small), and other tables. From May 2024, manual HSN entry in Table 12 has been completely disabled.
Table 12 must be completed in every GSTR-1 filing — monthly for taxpayers with turnover above Rs. 5 crore, and quarterly (QRMP) for taxpayers below that threshold. Leaving Table 12 incomplete or filing incorrect HSN codes can block your GSTR-1 submission.
Why HSN Reporting in GSTR-1 Became Mandatory
HSN codes were made mandatory in GST filings as part of a phased approach by the GST Council, implemented in stages from FY 2021-22 onwards. The mandate was driven by several policy objectives:
- Supply chain traceability: HSN codes allow the government to track the movement of specific goods through the supply chain and cross-verify consistent classification across suppliers.
- ITC verification: When a buyer claims ITC, the tax authority can verify that the HSN code on the seller's GSTR-1 matches the HSN code on the buyer's purchase invoice. Mismatches flag potential fraudulent ITC claims.
- Rate correctness: GST rates are HSN-specific. Mandatory reporting ensures taxpayers are charging the correct rate, reducing underreporting through deliberate misclassification.
- Anti-evasion analytics: The government's AI-driven GST analytics system uses HSN-level data to identify anomalies — sudden classification changes, HSN mix inconsistent with industry profile, and similar signals.
Phase I (FY 2021-22) made HSN mandatory for B2B supplies for businesses above Rs. 5 crore. Phase II extended to smaller taxpayers. Phase III (May 2024) introduced B2B/B2C bifurcation in Table 12 and disabled manual HSN entry entirely.
Current HSN Digit Requirements for FY 2025-26
The number of HSN digits you must report depends on your aggregate turnover in the preceding financial year and the type of supply (B2B or B2C).
| Turnover (previous FY) | HSN Digits Required (B2B) | HSN Digits Required (B2C) |
|---|---|---|
| Up to Rs. 5 crore | 4 digits (mandatory) | Optional (4 digits if provided) |
| Above Rs. 5 crore | 6 digits (mandatory) | 4 digits (mandatory) |
For most large businesses, this means 6-digit HSN codes on every B2B tax invoice and in every GSTR-1 Table 12 entry. The 6-digit requirement is strictly enforced — a 4-digit code will not be accepted for B2B supplies if your turnover is above Rs. 5 crore.
FY boundary check: Digit requirements are based on your previous financial year turnover. If you crossed Rs. 5 crore for the first time in FY 2024-25, you must use 6-digit HSN for B2B from April 2025, even if current year turnover is tracking lower.
What is an HSN Code?
HSN stands for Harmonised System of Nomenclature — an international classification system developed by the World Customs Organization (WCO) to create a standardised coding structure for traded goods. India adopted HSN in 1986 and incorporated it into GST from day one in 2017.
How HSN Codes are Structured
- 2 digits — Chapter: Broadest classification. Chapter 61 covers articles of apparel, knitted or crocheted.
- 4 digits — Heading: Narrows within the chapter. 6109 = T-shirts, singlets and other vests, knitted or crocheted.
- 6 digits — Sub-heading: Further narrows by material. 610910 = T-shirts of cotton. 610990 = T-shirts of other materials.
- 8 digits — Item: Most granular level, used for customs tariff and trade purposes.
SAC Codes for Services
Services are classified under SAC (Service Accounting Codes), specific to India's GST. All SAC codes begin with 99 and are always 6 digits long. For example: 998314 = Legal services, 998421 = IT development, 996311 = Restaurant services.
In GSTR-1 Table 12, you report HSN codes for goods invoices and SAC codes for service invoices — both in the same table format.
Table 12 Columns Explained
| Column | What to Enter |
|---|---|
| HSN/SAC Code | The HSN code (goods) or SAC code (services) at the required digit level |
| Description | Brief description of the goods or services |
| UQC (Unit Quantity Code) | Standard unit: NOS (numbers), KGS (kilograms), MTR (metres), LTR (litres), BOX, PCS, etc. |
| Total Quantity | Aggregate quantity of all supplies under this HSN in the tax period |
| Total Value | Aggregate invoice value (including GST) for all supplies under this HSN |
| Taxable Value | Aggregate taxable value (excluding GST) for all supplies under this HSN |
| Integrated Tax (IGST) | Total IGST on inter-state supplies under this HSN |
| Central Tax (CGST) | Total CGST on intra-state supplies under this HSN |
| State/UT Tax (SGST/UTGST) | Total SGST or UTGST on intra-state supplies under this HSN |
| Cess | Total Cess on supplies under this HSN (applicable to luxury/demerit goods) |
UQC matters: The Unit Quantity Code must match the UQC used on the original invoice. Common errors: using "NOS" for a product that should use "KGS". Consistent UQC across all invoices for the same product is important.
B2B vs B2C Tab — The Phase III Change (May 2024)
The most significant recent change to GSTR-1 Table 12 came in May 2024 as part of Phase III GST portal upgrades.
Change 1: Mandatory B2B and B2C Bifurcation
Previously, Table 12 showed a single HSN summary of all outward supplies. From May 2024, Table 12 has two separate tabs:
- B2B Tab: HSN summary of supplies made to registered taxpayers (with GSTIN-based invoices from Tables 4 and 6B)
- B2C Tab: HSN summary of supplies made to unregistered persons (from Tables 5, 6C, 7, and 8)
This bifurcation allows the tax department to cross-match your B2B HSN summary with ITC claims made by your registered buyers more precisely.
Change 2: Manual HSN Entry Disabled
Before Phase III, taxpayers could type HSN codes directly into Table 12. That option is now completely removed. Table 12 auto-populates exclusively from the invoice-level HSN codes you entered in Tables 4 through 10. If an invoice was entered without an HSN code, or with an incorrect code, it will flow into Table 12 incorrectly.
Critical implication: You cannot fix Table 12 after the fact by editing it directly. To correct Table 12 data, you must amend the underlying invoice entry in the relevant table and let Table 12 re-populate. Always set the correct HSN at the invoice entry stage.
Auto-fill HSN codes and GSTR-1 Table 12 with LekhaBooks
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Try free for 14 days →Common HSN Codes by Industry
Below are the most frequently used HSN codes across Indian industries. Always verify via the official HSN search on the GST portal (gst.gov.in) or CBIC website for your specific product.
Apparel and Footwear
| HSN Code | Description | GST Rate |
|---|---|---|
| 6109 | T-shirts, singlets, vests (knitted) | 5% (up to Rs.1000), 12% (above) |
| 6203 | Men's suits, jackets, trousers (not knitted) | 5% / 12% |
| 6204 | Women's suits, jackets, dresses, skirts | 5% / 12% |
| 6402 | Footwear with rubber/plastic outer soles | 5% / 18% |
Electronics
| HSN Code | Description | GST Rate |
|---|---|---|
| 8471 | Laptops, computers, and data processing machines | 18% |
| 8517 | Mobile phones, telephones, smartphones | 12% |
| 8528 | Televisions and monitors | 28% |
| 8518 | Microphones, headphones, earphones | 18% |
FMCG and Food
| HSN Code | Description | GST Rate |
|---|---|---|
| 0901 | Coffee (roasted, ground, instant) | 5% |
| 0902 | Tea (including green tea) | 5% |
| 1905 | Bread, biscuits, cakes, pastry, rusks | 0% / 5% / 18% |
| 2106 | Food preparations not elsewhere specified | 12% / 18% |
Building Materials
| HSN Code | Description | GST Rate |
|---|---|---|
| 6907 | Ceramic tiles, flags, paving | 5% / 12% / 18% / 28% |
| 7308 | Steel structures, doors, windows, columns | 18% |
| 3208 | Paints and varnishes | 18% |
| 2523 | Portland cement | 28% |
Services (SAC Codes)
| SAC Code | Description | GST Rate |
|---|---|---|
| 998311 | Management consulting services | 18% |
| 998314 | Legal advisory and representation | 18% |
| 998361 | Accounting, bookkeeping, auditing | 18% |
| 998421 | IT design and development services | 18% |
| 996311 | Restaurant and food service | 5% (no ITC) |
| 999293 | Education services (school/university) | Exempt |
Consequences of Wrong or Missing HSN in GSTR-1
- GSTR-1 filing blocked: If mandatory HSN codes are missing or in the wrong format (e.g., 3-digit when 4 are required), the GSTR-1 submission fails.
- Scrutiny under Section 61: The GST officer may issue a scrutiny notice if Table 12 HSN data is inconsistent with your industry profile or if the taxable value by HSN does not match the rate applied in invoice tables.
- E-invoice HSN mismatch alerts: For e-invoice-applicable taxpayers, if your GSTR-1 Table 12 HSN differs from the e-invoice HSN, the system generates a mismatch alert that can trigger a department review.
- Buyer's ITC reconciliation fails: If your HSN classification does not match what your buyer's purchase team recorded, their ITC reconciliation will flag a discrepancy and create compliance friction.
- Rate disputes: A wrong HSN classification can imply you charged the wrong GST rate. If the correct HSN has a higher rate, the department can demand the differential tax plus interest at 18% per annum.
How to Find the Correct HSN Code
1. GST Portal HSN Search
Log into gst.gov.in → Services → User Services → Search HSN/SAC. Type a keyword describing your product or service. The portal returns matching HSN codes with descriptions and applicable GST rates. This is the most authoritative source for GST purposes.
2. CBIC GST Rate Finder
The cbic-gst.gov.in portal has a rate finder tool where you can search by chapter, section, or description. It shows the complete GST rate schedule for each HSN, including Cess rates and conditional exemptions.
3. LekhaBooks HSN Finder
LekhaBooks has an integrated HSN Finder tool directly within your accounting software. When you add a new product, you can search for its HSN and set it once — every subsequent invoice for that product automatically carries the correct HSN without any manual lookup.
4. Advance Ruling
For high-value products where classification uncertainty could have significant tax implications, apply for an Advance Ruling from the Authority for Advance Rulings (AAR). The ruling is binding on the applicant and provides legal certainty on both HSN classification and applicable rate.
How LekhaBooks Handles GSTR-1 Table 12
- Set HSN once per product: When you create a product or service in LekhaBooks, you assign its HSN or SAC code at master data level. Every invoice for that product automatically carries the correct HSN — no repeated lookups required.
- Auto-validation of digit count: LekhaBooks checks your annual turnover slab and automatically enforces the correct HSN digit length — 4 digits for businesses below Rs. 5 crore, 6 digits for businesses above. Products with insufficient digits are flagged for upgrade.
- Monthly auto-aggregation: At month end, LekhaBooks aggregates all invoices by HSN code and computes the Table 12 summary automatically — total quantity, total value, taxable value, IGST, CGST, SGST, and Cess for each HSN group.
- Phase III B2B/B2C split: Since May 2024, LekhaBooks segregates Table 12 into the B2B tab (supplies with customer GSTIN) and B2C tab (supplies without GSTIN) automatically, in full compliance with Phase III requirements.
- Pre-filing HSN check: Before you finalise GSTR-1, LekhaBooks runs a pre-filing check that flags any invoices without HSN codes, any codes with wrong digit count, and any UQC inconsistencies across invoices for the same product.
- Integrated HSN Finder: Use the built-in HSN Finder to search for and assign codes to products, covering the full Indian HSN master with GST rates.
Frequently Asked Questions
What is Table 12 in GSTR-1?
Table 12 in GSTR-1 is the HSN/SAC-wise summary of outward supplies. It aggregates all your sales invoices by their HSN code (for goods) or SAC code (for services). From May 2024 (Phase III), Table 12 must separately report B2B supplies (to registered taxpayers) and B2C supplies (to unregistered persons) in distinct tabs. HSN data flows automatically from invoice details entered in Tables 4 through 10 and cannot be entered manually into Table 12 directly.
How many HSN digits are required in GSTR-1 for FY 2025-26?
For businesses with previous year turnover up to Rs. 5 crore: 4-digit HSN is mandatory for B2B supplies; B2C HSN reporting is optional (but must be 4 digits if provided). For businesses with previous year turnover above Rs. 5 crore: 6-digit HSN is mandatory for B2B supplies; 4-digit HSN is mandatory for B2C supplies. Requirements are based on aggregate turnover in the preceding financial year.
What happens if I enter a wrong HSN code in GSTR-1?
Wrong HSN codes can block GSTR-1 filing if the format does not meet the digit requirement. They may trigger scrutiny notices under Section 61 of the CGST Act. If your GSTR-1 HSN does not match the HSN in your e-invoice (for applicable taxpayers), the system generates mismatch alerts. Your buyers may also face ITC reconciliation issues if the HSN on their purchase invoice does not match your GSTR-1 data.
What is the difference between HSN and SAC codes?
HSN (Harmonised System of Nomenclature) codes classify goods with a hierarchical structure: 2-digit chapters, 4-digit headings, 6-digit sub-headings, and 8-digit items. SAC (Service Accounting Codes) classify services and are specific to India's GST framework. All SAC codes start with 99 and are 6 digits long — for example, 998311 for management consulting and 996311 for restaurant services. In GSTR-1 Table 12, you report HSN codes for goods invoices and SAC codes for service invoices in the same table format.
What is the Phase III change to GSTR-1 Table 12?
From May 2024, Phase III made two major changes. First, HSN summary must now be reported separately for B2B (registered taxpayers) and B2C (unregistered persons) supplies in two distinct tabs within Table 12. Second, manual HSN entry in Table 12 was completely disabled — all HSN data must flow automatically from invoice-level entries in Tables 4, 5, 6, 7, and other tables. You cannot correct Table 12 directly; you must amend the underlying invoice entries.