This notification explains a new update to the GST filing process, specifically about reporting HSN (Harmonised System of Nomenclature) codes in the GSTR-1 and GSTR-1A forms. Here’s a simple explanation: 

What Changed? 

1. HSN Dropdown: Instead of manually typing HSN codes in Table 12, taxpayers now need to select the correct HSN code from a dropdown menu provided in the filing system. 
2. Separate Tabs: Table 12 is split into two sections: one for Business-to-Business (B2B) transactions and another for Business-to-Consumer (B2C) transactions. This makes it easier to report them separately. 
3. Validations: The system will check whether the values and tax amounts reported in these tabs are accurate. For now, these checks will only display warnings and won’t block the filing process if errors are detected. 

Effective Date: 

These changes are applicable for GST returns filed for the February 2025 return period onwards. 

Why is This Important?  

This update aims to improve data accuracy and compliance in GST returns by reducing errors, ensuring correct classification of goods and services, and standardising the reporting process. 

Essentially, this makes the GST filing system more streamlined and robust, ensuring better compliance without making it too rigid initially.