Table-12 of GSTR-1 and GSTR-1A captures HSN-wise summary of outward supplies. To improve the accuracy and automation of data entry, GSTN had announced a phased implementation plan to restructure Table-12. The first two phases focused on groundwork, such as system changes and taxpayer sensitisation. With Phase-III now scheduled for implementation from the April 2025 tax period onwards, this marks the final operational phase. 

Detailed Changes Introduced in Phase-III: 

Under Phase-III, GSTN is introducing the following critical modifications to Table-12: 

1. Split into B2B and B2C Tables: 
Table-12 has been bifurcated to separately report HSN-wise summary for-  

– B2B (Business-to-Business)  

– B2C (Business-to-Consumer) supplies.  

This segmentation allows for clearer reporting and better reconciliation. 

2. Restricted Manual Entry of HSN Codes: 
Taxpayers will no longer be allowed to enter HSN codes manually. Instead, they must select HSNs from a pre-defined drop-down list provided on the portal. This ensures standardisation and reduces errors due to incorrect HSN entries. 

These changes are mandatory for all taxpayers filing GSTR-1 or GSTR-1A for the April 2025 tax period and beyond. 

Amendments and Their Implementation: 

This change is being implemented as part of the GSTN’s digital compliance roadmap. Taxpayers must familiarise themselves with the new structure and updated user interface from the April 2025 return cycle onwards. The GSTN has also advised referring to the earlier detailed advisory dated January 22, 2025, available on the GST portal, for technical and practical insights. 

Advantages of the Amendments: 

• Enhances data accuracy by removing manual HSN input errors. 

• Improves clarity between B2B and B2C HSN summaries. 

• Facilitates better matching and analytics for tax administration. 

• Prepares the groundwork for future automation and AI-based compliance validation. 

Implications and Future Prospects: 

Taxpayers must ensure that their internal accounting systems and return-filing processes are updated to reflect the new reporting format. ERP/software vendors may need to release updates accordingly. It is expected that such structured reporting will help in better compliance monitoring and faster data processing in future. 

Conclusion: 

The implementation of Phase-III changes in Table-12 of GSTR-1 and GSTR-1A is a significant compliance update. From April 2025 onwards, taxpayers must report HSN-wise details separately for B2B and B2C and use system-generated drop-downs for HSN selection. This move towards structured and automated reporting aims to boost data integrity and streamline GST compliance.