To improve accuracy and standardization in HSN reporting, the Goods and Services Tax Network (GSTN) has introduced Phase-III of changes to Table 12 of GSTR-1 and GSTR-1A, effective from the April 2025 tax period onwards. These changes are part of a phased rollout aimed at improving the quality and consistency of HSN-wise summary reporting in GST returns.
📌 What’s Changing in Phase-III?
GSTN has made the following enhancements in Table-12 under Phase-III:
- Separation of B2B and B2C Supplies
- The previous single Table-12 has now been split into two separate tables:
- B2B: For reporting business-to-business supplies.
- B2C: For reporting business-to-consumer supplies.
- HSN-wise summary of these supplies must now be entered separately in their respective tables.
- HSN Code Entry via Dropdown Only
- Manual typing of HSN codes has been disabled.
- Taxpayers must now select the appropriate HSN from a predefined dropdown list, ensuring greater standardization and minimizing data entry errors.
 Why These Changes Matter
These updates aim to:
- Improve data uniformity in return filings.
- Minimize errors in HSN classification.
- Enable better data analytics and cross-verification by GST authorities.
- Facilitate faster reconciliation between GSTR-1 and GSTR-3B.
Where to Learn More?
GSTN has issued a detailed advisory dated January 22nd, 2025, outlining these changes. Taxpayers and tax professionals are advised to read this advisory carefully to stay compliant.
Final Thoughts
These structured improvements by GSTN reflect a broader push toward streamlined tax filing and compliance under GST. Businesses should gear up to adapt their filing systems to the new format from April 2025 onwards. Proper awareness and preparation can prevent errors, notices, or mismatches during scrutiny.
 Notification Reference: GSTN
 11/04/2025