The Goods and Services Tax Network (GSTN) has recently issued an advisory regarding significant changes to Table-12 of GSTR-1 and GSTR-1A, effective from the tax period of April 2025. These updates are part of the Phase-III rollout aimed at streamlining GST return filings and enhancing data accuracy. Here's a detailed breakdown of the changes and their implications for taxpayers.
What is Table -12 of GSTR-1 and GSTR-1A?
Table-12 is a section in the GST return forms where taxpayers report the summary of their supplies based on Harmonized System of Nomenclature (HSN) codes. This table plays a crucial role in ensuring uniformity and transparency in tax reporting.
Key Changes in Table -12
1. Split reporting for B2B and B2C Transaction:
Table-12 has been bifurcated into two separate sections:
* Business to Business (B2B) Transactions
* Business to Consumer (B2C) Transactions
Taxpayers must now report the summary of their supplies HSN wise in the respective sections.
2. Mandatory HSN Code Section Transaction:
- Manual entry of HSN codes is no longer permitted.
- Taxpayers are required to select the appropriate HSN code from a pre-defined dropdown list provided within the GSTR-1 or GSTR-1A forms.
Benefits of the Changes
- Improved Accuracy: The dropdown-based HSN selection minimizes the risk of errors in reporting.
- Enhanced Compliance: Clear segregation of B2B and B2C transactions simplifies compliance for taxpayers.
- Streamlined Audits: Accurate HSN data facilitates smoother audits and analytics.
Steps to Ensure Compliance
- Familiarize Yourself with the Changes:
- Review the detailed advisory issued by GSTN on January 22, 2025, available on the GST Portal.
- Understand the new format and filing requirements.
- Update Your Systems:
- Ensure that your accounting and GST filing software is updated to accommodate the new changes.
- Train Your Team:
- Educate your team about the new reporting requirements to avoid errors and delays.
Conclusion
The changes to Table-12 of GSTR-1 and GSTR-1A are a step towards a more efficient and transparent GST ecosystem. Taxpayers are encouraged to adapt to these updates promptly to ensure seamless compliance. For detailed guidance, refer to the advisory available on the GST Portal.
