Government relaxes annual return compliance by removing mandatory item code reporting for inward supplies

The government has introduced a compliance relaxation by making the HSN-wise reporting of inward supplies in Table 18 of GSTR-9 optional. This change applies starting from the financial year 2025-26. The measure is intended to simplify annual return filings for registered taxpayers across various business sectors. Annual GST filings typically require detailed aggregation of outward and inward supplies categorized by Harmonised System of Nomenclature codes.

Compiling inward supply codes often involves extensive data reconciliation across enterprise resource planning systems. Relaxing this requirement reduces administrative overhead for businesses managing complex supply chains and numerous vendor transactions. Tax professionals should update their annual compliance checklists and client advisory guidelines for the 2025-26 financial year reporting cycle.

Businesses can reallocate internal accounting resources previously dedicated to mapping inward supply HSN codes. Bottom line: this operational relief simplifies annual return preparation while maintaining core tax reporting standards.