- Mandatory HSN Code Selection: Starting from the February 2025 return period (April 2025 onward), taxpayers must select HSN codes from a predefined dropdown list in Table-12 of GSTR-1 and GSTR-1A, eliminating manual entry to minimize errors. Descriptions will be auto-populated for consistency.
- Separate Reporting for B2B and B2C: Table-12 has been divided into two tabs for distinct reporting of B2B (business-to-business) and B2C (business-to-consumer) supplies, requiring separate HSN reporting for each category to enhance accuracy in GST filings.
- Auto-Validation and Future Preparations: An auto-validation feature has been introduced to check the consistency of HSN totals against other GSTR-1 tables, currently providing alerts for mismatches without blocking return filing. Businesses with annual turnover exceeding ₹5 crore must ensure compliance with these changes, update their accounting systems, and prepare for potential mandatory validations in future phases (Phase-IV).
Source Taxguru
