Quick Summary
Key Changes in Table 12 of GSTR-1
1. Mandatory Dropdown Selection for HSN Codes
- Manual entry of HSN codes is no longer permitted.
- Taxpayers must select the appropriate HSN code from a predefined dropdown list.
- Upon selection, a new field titled "Description as per HSN Code" auto-populates with the standardized description from the HSN master, ensuring consistency and reducing errors.
2. Bifurcation into B2B and B2C Tabs
Table 12 is now divided into two separate tabs:
- B2B (Business-to-Business) Supplies
- B2C (Business-to-Consumer) Supplies
This segregation facilitates clearer reporting and better classification of transactions based on the nature of the recipient.
3. Introduction of Auto-Validation Mechanism
- A validation system has been introduced to cross-verify the values of supplies and tax amounts reported in Table 12 against other relevant tables in GSTR-1, such as Tables 4A, 4B, 6B, and 6C.
- Currently, these validations operate in a "warning mode," meaning discrepancies will trigger alerts but will not prevent the filing of returns.
4. Enhanced Functionalities for User Convenience
- Download HSN Codes List: A new button allows taxpayers to download an Excel file containing the updated list of HSN and SAC codes along with their descriptions.
- Searchable "Product Name as in My Master": This feature enables users to search their custom product descriptions, which will auto-populate related HSN details, including Unit Quantity Code (UQC) and quantity.
Applicability Based on Aggregate Annual Turnover (AATO)
| Aggregate Annual Turnover (AATO) | HSN Code Digits Required | Manual Entry Allowed | Effective From |
|---|---|---|---|
| Up to ₹5 crore | 4 digits | No | May- 2025 |
| Above ₹5 crore | 6 digits | No | May-2025 |
These requirements align with Notification No. 78/2020 - Central Tax dated 15th October 2020.
Recommended Actions for Taxpayers
- Update Accounting Systems: Ensure that your accounting or billing software is configured to align with the new dropdown-based HSN reporting mechanism.
- Train Relevant Personnel: Educate your accounting and compliance teams about the new reporting requirements and functionalities.
- Utilize New Features: Leverage the "Download HSN Codes List" and "Product Name as in My Master" features for efficient and accurate reporting.
- Monitor Validation Warnings: Pay attention to any warnings triggered by the auto-validation system and address discrepancies promptly to maintain compliance.
- These enhancements to Table 12 of GSTR-1 and GSTR-1A are designed to streamline the GST return filing process, reduce errors, and improve data accuracy. Taxpayers are encouraged to adapt to these changes promptly to ensure seamless compliance and avoid potential issues in future filings
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To enable this change, in TallyPrime 6, follow these steps: • Navigate to F11 > Set/Alter GST Rate and Other Details - set to 'Yes'. • Go to More Details > Show More. • Select the option 'Separate B2B and B2C HSN Summary applicable from' and enter 1-5-2025.
Manual entry of HSN codes is no longer permitted. Taxpayers must now select HSN codes from a mandatory dropdown list, which automatically populates the description.
Table 12 is now divided into two separate tabs: one for B2B (Business-to-Business) supplies and another for B2C (Business-to-Consumer) supplies.
A system has been introduced to cross-verify supply and tax amounts in Table 12 against other relevant tables in GSTR-1. Currently, this functions as a warning system for discrepancies.
Yes, taxpayers can now download an Excel list of HSN and SAC codes, and use a 'Product Name as in My Master' search feature to auto-populate HSN details.
For an aggregate annual turnover up to ₹5 crore, 4 digits are required. For turnovers above ₹5 crore, 6 digits are required. Manual entry is not allowed for either.
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