Mandatory HSN Code Declaration in GSTR-1 & GSTR-1A : A Step Towards Enhanced GST Compliance

Implementation of Phase-III for Table 12 in GSTR-1 & GSTR-1A: January 2025 Update

As part of the continuous improvements in GST compliance, the GST Portal has successfully implemented Phase-III for Table 12 of GSTR-1 & GSTR-1A, effective from the return period of January 2025. Key updates in this phase include:

1. HSN Code Selection: The manual entry of HSN codes has now been replaced with a dropdown menu, allowing taxpayers to select the correct HSN code, ensuring better accuracy and consistency.
2. Bifurcation of Table-12: Table-12 has been divided into two distinct tabs—B2B (Business to Business) and B2C (Business to Consumer)—to separately report supplies made under these categories.
3. Enhanced Validation: New validation checks have been introduced for both B2B and B2C tabs, ensuring that the values of supplies and tax amounts align correctly. During the initial phase, these validations will be in warning mode, meaning non-compliance with validation rules will not block the filing of GSTR-1 & GSTR-1A, but taxpayers are encouraged to adhere to the prescribed requirements.

This update is aimed at streamlining the filing process, improving data accuracy, and ensuring better compliance with GST reporting requirements.

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