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Changes in GSTR1 from 01.04.2025 / Changes in GST Return / Reporting of HSN codes in Table 12 of GSTR-1/1A

Introduction

The GST Portal is constantly upgrading to help taxpayers report their returns accurately. One such area is Table 12 of GSTR-1, where HSN codes for goods and services are to be reported. To ensure proper classification of goods and services under GST, the government is now strictly validating HSN codes reported in GSTR-1.

What is Table 12 of GSTR-1?

Table 12 of GSTR-1 is used to provide a summary of outward supplies (sales) based on HSN codes.

You need to mention:

• The HSN/SAC code
• Description of goods or services
• UQC (Unit Quantity Code)
• Quantity, Total value, Taxable value
• Rate of tax, IGST/CGST/SGST/UTGST/Cess

This table is important because it helps tax authorities to monitor the classification and taxation of goods and services.

What is an HSN Code?

HSN (Harmonized System of Nomenclature) is a global system for classifying goods. For services, we use SAC (Services Accounting Code). These codes help in uniform taxation across India and the world.

Background: How HSN Reporting Has Changed Over Time

The government made HSN reporting mandatory through Notification No. 78/2020 – Central Tax dated 15 October 2020. It required businesses to report:

• 4-digit HSN if turnover ≤ ₹5 crore
• 6-digit HSN if turnover > ₹5 crore

This requirement is being implemented in phases:

In Phase 3, reporting becomes stricter. Let’s understand this in detail.

What’s New in Phase 3?

Ø Strict HSN Code Validation (No Manual Entry Allowed)

From Phase 3 onwards:

·        You cannot manually type the HSN code.

·        You must select the correct HSN code from a dropdown list on the portal.

·        The official description of the product/service (from HSN master) will be auto-filled in a new column called “Description as per HSN Code.”

Ø Value Validation – What You Enter Must Match!

The system will check whether the values you enter in Table 12 match with other tables in GSTR-1:

Ø For B2B Supplies (Business to Business):

The portal will compare values in the following tables:

·        4A, 4B, 6B, 6C, 8 (for registered recipients)

·        9A, 9B (registered), 9C (registered)

·        15 and 15A (registered)

Ø For B2C Supplies (Business to Customer):

Values will be checked against:

·        5A, 6A, 7A, 7B, 8 (for unregistered recipients)

·        9A (Exports/B2CL), 9B, 9C (unregistered)

·        10, 15 and 15A (unregistered)

If the values do not match, the portal will show a warning, but you’ll still be able to file GSTR-1 (for now). However, such mismatches may be questioned during assessments later.

Note: If you’ve entered B2B invoices in other tables, you cannot leave the B2B section of Table 12 blank.

What Happens in Amendments?

When you amend previously filed invoices:

• The portal will only validate the changed (differential) values.
• The original values will not be considered again.

This makes sure that only new or corrected information is re-checked.

Additional Enhancements in Table 12: The GSTN has also added useful features to Table 12 to improve usability:

1. Two Separate Tabs: B2B & B2C

Now Table 12 is divided into:

• B2B Supplies tab (for sales to registered businesses)
• B2C Supplies tab (for sales to consumers)

You must enter the HSN summary in the right tab.

2.  “Download HSN Code List” Button

There’s a new button that lets you download an Excel file containing:

• Latest HSN & SAC codes
• Descriptions

This helps you find the correct code before filing returns.

3. Search Product in “My HSN Master”

If you have created a product master in GST Portal:

• You can now search by product name.
• On selecting it, the portal will auto-fill the HSN code, description, quantity, and UQC.

This is an optional feature, but it saves time and avoids mistakes.

Quick Summary of Rules to Follow

Tips for Filing Table 12 Correctly

1.    Download the latest HSN list before filing.

2.    Make sure your product master is updated.

3.    Double-check quantities, UQC, and taxable values.

4.    Match values with other tables like 4A, 5A, 6B, etc.

5.    Do NOT enter incorrect or fake HSN codes.

6.    Do NOT leave the Table-12 B2B section blank if you've issued B2B invoices elsewhere.

What’s Coming Next?

• Phase 4 of HSN validation will be introduced in the future.
• More checks and possibly stricter validation may be applied later.
• Currently, mismatches only give warnings, but later they may block the return filing or attract notices.

Conclusion

This new advisory is a big step toward making GST return filing more accurate and transparent. Taxpayers must now be more careful while reporting HSN codes in GSTR-1, especially in Table 12.

The system is moving toward automation, real-time validation, and less manual error. If you follow the rules mentioned above, return filing will become smoother, and you can avoid legal troubles later.

Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.