Recently, in India, the Goods and Services Tax Network (GSTN) introduced a key update on the GST portal aimed at improving data accuracy and facilitating tax compliance for businesses. Specifically, Table 12 of GSTR-1/1A has been divided into two distinct sections, requiring separate HSN-wise reporting for Business-to-Business (B2B) and Business-to-Consumer (B2C) outward supplies. This change is intended to enhance clarity and ensure more accurate reporting of different transaction types.
Starting May 2025, a structural change in tax regulations will come into effect, impacting GSTR-1/1A filings. Consequently, the revised filing will be due in June 2025.
Important Update Highlights
* Table 12 Revised: Now requires clear segregation of Business-to-Business (B2B) and Business-to-Consumer (B2C) transactions. These must be reported in separate sections to ensure clarity, accurate reporting, and effective data analysis.
* Applicability Period: This applies to returns filed starting in May 2025 and onward.
* Applicable Across All Filing Methods: Multiple options are available for managing GST filings, such as using the GST Portal, offline utilities, or third-party software. Each method provides unique benefits to suit various user preferences.
* Mandatory Regulations: Failure to comply may result in discrepancies or potential audit challenges.
Actions Required by Businesses
- Make sure to update your ERP or accounting software so it can properly manage separate HSN reporting for both B2B and B2C transactions. This update will improve accuracy and help maintain compliance.
- It is crucial to keep internal teams well-informed and properly prepared for the rollout of the new format.
- Conducting a thorough data validation before submission is essential to avoid any errors.
The Goods and Services Tax Network (GSTN) urges all taxpayers to organize their data carefully to ensure accurate and timely compliance with tax regulations. For more information, please consult the detailed advisory on the official GST portal.
In India, the GST department has introduced a significant update on the GST Portal regarding the GSTR-1/1A Table 12 split for B2B and B2C HSN data. Businesses seeking effective solutions can consider SAG Infotech’s Gen GST Software. This software enables users to generate a JSON file with either blank input or a 2- to 4-digit HSN code. Additionally, it supports data import from Excel templates compatible with government formats, SAG, Tally, or Busy. Users can also copy and paste HSN codes directly during the e-filing process using our Gen GST compliance software.