Streamlining GST Compliance: Phase-III Updates for Table 12 of GSTR-1

The Goods and Services Tax Network (GSTN) has introduced Phase-III enhancements for Table 12 of GSTR-1 and GSTR-1A, effective from January 2025. These changes simplify reporting, improve accuracy, and ensure better compliance with GST regulations. This article highlights the key updates, making it easier for taxpayers to understand and implement them.

What’s New in Table 12 Reporting?

1. Dropdown Selection for HSN Codes
   Taxpayers must now select HSN (Harmonized System of Nomenclature) codes from a dropdown list instead of manually entering them. This feature reduces the chances of errors. Additionally, the system auto-fills the description for the selected HSN code in a field called “Description as per HSN Code.”
2. Separate Tabs for B2B and B2C Supplies
   Table 12 is now divided into two sections:
   • B2B Supplies (Business-to-Business)
   • B2C Supplies (Business-to-Consumer)
     Taxpayers must report these supplies in their respective tabs. This separation brings clarity and helps organize data more effectively.
3. Automatic Validations for Accuracy
   The system now checks that the values and tax amounts in Table 12 align with entries in other tables of GSTR-1. For instance:
   • The system compares values in the B2B Supplies tab with those in tables like 4A and 6B.
   • Similarly, it validates data in the B2C Supplies tab against tables such as 5A and 7A.
     These validations currently work in warning mode, which means discrepancies will not prevent filing. However, resolving warnings early can help avoid future issues when validations become stricter.
4. Improved Tools for Users
   • A new “Download HSN Codes List” button allows users to download a complete list of updated HSN and SAC (Services Accounting Codes).
   • The search functionality for “Product Name as in My Master” has been enhanced. Taxpayers can now quickly find and auto-populate fields using this feature.

Why These Changes Matter

These updates make GST filing simpler, more accurate, and compliant with regulatory requirements. By using dropdown menus for HSN codes and reporting B2B and B2C supplies separately, businesses can reduce errors and save time. Moreover, early adaptation to validations ensures a smoother transition when stricter rules take effect.

Transition Period: What to Expect

For now, validations will only trigger warnings if discrepancies exist. Taxpayers can still file their returns even if their data fails these checks. However, addressing these issues during the warning phase will prepare businesses for stricter enforcement in the future.

Final Thoughts

Phase-III improvements are a step forward in modernizing GST compliance. Businesses should adapt to these changes and take advantage of the new features to simplify their filing process.

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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

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