Filing GST returns just got a little more interesting. GSTN has now rolled out the Phase III of their efforts to improve HSN-wise summary reporting. Under the new rule all businesses now will have to enter HSN summary details of B2B Supplies and B2C supplies separately in Table 12 of GSTR-1/1A.
GSTN will implement Phase-III of enhancing HSN reporting from April 2025 tax period onwards. This is aimed at reducing errors, misclassification and bringing more clarity to GST filings. Businesses will need to adapt their return process to align with the new change of reporting HSN data.
What is the change in GSTR-1?
The new change will reflect in Table 12 of GSTR-1. Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” and “B2C Supplies”. Taxpayers need to enter HSN summary details of B2B Supplies and B2C Supplies separately under respective tab.
The new change also mandates that the total of B2B HSN summary should match with total of B2B sections (4A, 4B, 6B, 6C, 8A, 8B, 9B and 9C) and the total of B2C HSN summary should match with total of B2C sections (5A, 6A, 7A, 7B, 8C, 8D, 9A, 9B and 9C).
What is the effective date of implementation?
Businesses will have to comply with the new requirement from April 2025 tax period onwards.
What should businesses do to prepare?
Here's what businesses need to do to stay compliant and file error-free returns under the new format:
- Businesses must now prepare to report their HSN summaries with a B2C and B2B breakup. Keep your accounting teams updated on all changes and prepare for the April return filing with a separate list of B2C and B2B supplies.
- Download the HSN Master using the "Download HSN Codes List" button to to view the applicable HSN/SAC codes along with their descriptions, UQC, and other relevant details for accurate reporting.
- Make sure that your accounting software is integrated with updated GSTN HSN dropdowns.
Sounds like a lot of work? It doesn’t have to be. TallyPrime’s got you covered with an add-on built just for this update.
How to enable and generate B2B and B2C HSN summary in TallyPrime?
The latest release of TallyPrime of is now enhanced to support the HSN summary changes in line with the advisory issued by the GSTIN. You can enable B2B and B2C HSN summary changes in few simple steps mentioned below:
- Press F11 for Company Features
- Enable ‘Set/Alter company GST rate and other details’
- Press Ctrl + I for ‘More details’ and select ‘Show More’
- Select ‘Separate B2B and B2C HSN Summary applicable from’
- Mention the applicable date as 1-4-2025
- Next, Open the GSTR-1 and Select ‘Yes’ for GST update
Now, HSN Summary shows the B2B and B2C and you can drill down for more details Once you export the report in JSON or upload it online directly from TallyPrime the HSN breakup will reflect automatically. Upgrade to the latest release of TallyPrime to comply with the new change.
