Changes in GSTR-1 / GSTR-1A : Phase-III Changes to Table-12 

The Goods and Services Tax Network (GSTN) has announced the changes in GSTR-1 – Phase-III implementation of structural changes to Table-12 of GSTR-1 and GSTR-1A, effective from the April 2025 tax period onwards. These modifications aim to streamline HSN-wise reporting and enhance data accuracy. Here’s what taxpayers need to know:

Key Changes in GSTR-1 / GSTR-1A : Table-12 (Phase-III)

1. Bifurcation of Table-12

  • Table-12 is now split into two separate tables:
    • B2B Supplies: For business-to-business transactions.
    • B2C Supplies: For business-to-consumer transactions.
  • Rationale: Enables clearer segregation and analysis of supply patterns.

2. Mandatory HSN Selection from the Dropdown

  • Manual HSN entry is disabled. Taxpayers must:
    • Select the correct HSN code from a pre-populated dropdown menu.
    • Ensure alignment with invoices to avoid mismatches.
  • Impact: Reduces errors and improves GST data quality.

Action Points for Taxpayers

✔ Review HSN Codes: Verify your product/services’ HSN codes in advance.
✔ Update Accounting Systems: Ensure compatibility with the new dropdown-based entry.
✔ Refer to Past Advisories: For detailed guidance, check the GSTN Advisory dated January 22, 2025.

Why This Matters

  • Compliance Efficiency: Standardized HSN reporting minimizes reconciliation issues.
  • Fraud Prevention: Disabling manual entries curbs misclassification.
  • Seamless Transition: Phase-wise rollout ensures gradual adaptation.

How TaxPower GST is handling Changes in GSTR-1 / GSTR-1A : Table-12 (Phase-III)

TaxPowerGST is proactively preparing for the upcoming Phase-III changes in Table-12 of GSTR-1 and GSTR-1A, ensuring seamless adaptation for tax professionals and accountants. Leveraging its experience in successfully addressing past GST amendments, the software enhances its features to align with the latest compliance requirements. With a focus on accuracy and efficiency, it is refining automated HSN code selection, supply bifurcation, and real-time validation mechanisms to simplify tax filings. By continuously evolving and integrating solutions for regulatory updates, TaxPowerGST reaffirms its commitment to making GST compliance hassle-free while equipping users with robust tools to navigate changing tax landscapes effortlessly.

Try TaxPowerGST today with a free one-month trial and experience firsthand how it simplifies GST filing and compliance!

Team Taxpower

Blog Ref: GSTN Portal Advisory