In accordance with Notification No. 78/2020 – Central Tax dated 15th October 2020, the GST Network (GSTN) has been gradually implementing mandatory reporting of HSN codes in Table 12 of GSTR-1 returns, based on the taxpayer’s Aggregate Annual Turnover (AATO) in the preceding financial year.
What’s New from May 2025 Onwards?
Beginning with the GSTR-1 return for May 2025, which is to be filed in June 2025, the following changes are now live on the GST portal:
1. Table 12 Segregated into B2B and B2C
Table 12, which captures HSN-wise summary of outward supplies, has now been segregated into two distinct sections:
- B2B (Business-to-Business) Supplies
- B2C (Business-to-Consumer) Supplies
This change is aimed at increasing the granularity and clarity in the reporting of HSN details for different transaction types. The portal interface now requires you to enter HSN-wise details separately for B2B and B2C invoices.
🔍 [See attached screenshot of the updated Table 12 interface]
2. Mandatory Reporting in Table 13 – List of Documents Issued
Alongside the changes in Table 12, Table 13 of GSTR-1/1A is now mandatory from the May 2025 return period onwards. This table captures a summary of documents issued (like invoices, credit notes, debit notes, etc.), and its mandatory reporting will help improve audit trails and data consistency.
Background on HSN Code Reporting
Under Notification No. 78/2020:
- Taxpayers with AATO above ₹5 crore must report 6-digit HSN codes.
- Taxpayers with AATO up to ₹5 crore must report 4-digit HSN codes, if involved in notified supplies.
This requirement has been introduced in phases, with Phase 1 and Phase 2 already implemented, and Phase 3 now becoming applicable from May 2025.
Action Required for Taxpayers
- Ensure your ERP/accounting software is updated to reflect separate HSN reporting for B2B and B2C transactions.
- Report all HSN details accurately as per your turnover category.
- Don’t miss reporting details in Table 13, as it is now compulsory.
Conclusion
These updates are intended to bring greater transparency and precision in GST return filings. Taxpayers are advised to comply with the revised format starting from May 2025 return to avoid errors or notices.
For the detailed official advisory and instructions, visit the GST portal.
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