The Goods and Service Tax Network (GSTN) has been notified to implement the 3rd phase of mandatory mentioning of Harmonised System of Nomenclature(HSN) codes in GSTR-1 and GSTR 1A.
After successful implementation of Phase-I & Phase-II now Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from the return period February 2025. In this phase manual entry of HSN has been replaced by choosing the correct HSN from the given Drop down.
Also, Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately. Further, validation regarding values of the supplies and tax amounts involved in the same, have also been introduced for both the tabs of Table-12.
However, in the initial period these validations have been kept in warning mode only, which means failing the validation will not be a blocker for filling of GSTR-1 & 1A.
In phase 3 in Table-12 validation with regards to value of the supplies have also been introduced.
These validations will validate the value of B2B supplies shown indifferent Tables viz: 4A, 4B, 6B, 6C, 8 (recipient registered), 9A, 9B (registered), 9C (registered), 15 (recipient registered), 15A (recipient registered) with the value of B2B supplies shown in table-12.
Similarly, validations will validate the value of B2C supplies shown in different tables viz: 5A, 6A, 7A, 7B, 8 (recipient unregistered), 9A (export), 9A (B2CL), 9B (unregistered), 9C (unregistered), 10, 15 (recipient unregistered), 15A (recipient unregistered) with the value of B2C supplies shown in Table-12.
In case of amendments, only the differential value will be taken for the purpose of validation.
However, initially these validations have been kept in warning mode only, that means a warning or alert message shall be shown in case of mismatch in values, whereas taxpayers will be able to file GSTR-1 in such cases. Further, in case B2B supplies are reported in other tables of GSTR-1, in that case B2B tab of Table-12 cannot be left empty.
Various additional enhancement have been made in Table-12 of GSTR- 1/1A.
Firstly, Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” & “B2C Supplies”. Taxpayers need to enter HSN summary details of B2B Supplies and B2C Supplies separately under the respective tab.
Secondly, a new button has been introduced in Table 12, “Download HSN Codes List”. Upon clicking of this button, taxpayer would be able to download an excel file with the updated list of HSN & SAC codes for goods and services along with their description.
Thirdly, the button for “Product Name as in My Master” has now been made searchable. Taxpayers can search the description provided by them in My HSN Master and upon selection of the same, the HSN code, Description as per HSN Code, UQC & Quantity shall be auto-populated. This is an optional functionality.
