GST Filing Update: GSTR‑1 Table 12 Segregated into B2B and B2C Sections

Introduction

In a significant move for GST compliance, the Goods and Services Tax Network (GSTN) has reorganised Table 12 of the GSTR‑1 form. From the May 2025 filing period, businesses must file separate HSN-wise summaries for B2B and B2C supplies, along with mandatory disclosures in Table 13. This update brings much-needed clarity and precision to GST data reporting. In this blog post by Manika FinTax Solutions, we’ll break down what’s changed, why it matters, and how to prepare your filings effortlessly.

What’s New in GSTR‑1 Table 12?

1. Split into Two Tabs

• Table 12A (B2B Supplies): Now captures HSN-wise summaries for business-to-business transactions.

• Table 12B (B2C Supplies): Dedicated to business-to-consumer sales .

2. HSN Reporting Rules

• Businesses with AATO ≤ ₹5 crore must report 4-digit HSN codes.

• Those with AATO > ₹5 crore must use 6-digit HSN codes 

• Manual HSN entry is no longer allowed—only dropdown selection .

3. Enhanced Portal Features

• Dropdown for HSN selection and downloadable HSN lists.

• Auto-fill features pulling from product master data .

What’s Changed in Table 13?

• Mandatory Summary of all documents: invoices, credit/debit notes, revised invoices, and delivery challans.

• Validation checks now block filing if Table 13 is left blank 

• Aimed at improving data accuracy and audit trails.

Why These Updates Matter

1. Improved Data Accuracy
   The clear B2B/B2C separation helps GSTN and businesses better track HSN compliance and transaction types.

2. Reduced Errors
   Built-in validation reduces classification mistakes and unintentional omissions.

3. Easier Reconciliation
   HSN-wise and tax-type-wise separation simplifies invoice reconciliation.

4. Faster Input Tax Credit (ITC)
   Accurate filing ensures buyers get timely ITC—delays can disrupt cash flows 

5. Data-Driven Tax Policy
   Granular data helps policymakers identify patterns and make informed decisions 

Who Is Affected?

• All registered taxpayers must comply:

  • B2B entries in Table 12A are mandatory.

  • B2C entries in Table 12B are:

    • Mandatory for entities with AATO > ₹5 crore.

    • Optional (warning mode) for AATO ≤ ₹5 crore 

• All taxpayers must fill Table 13, regardless of turnover.

How to Implement These Changes: Actionable Checklist

1. Update Accounting Systems

   • Ensure HSN details are captured, categorised, and synced.

   • Allow HSN dropdown in invoice entry flow.

2. Export Transaction Data

   • Prepare HSN-wise summaries for B2B and B2C.

3. Validate Before Upload

   • Cross-check HSN codes, supply values, and document counts.

4. Filing on GST Portal

   • Complete Tables 12A/B and 13 using dropdowns and summary formats.

   • Monitor system alerts regarding missing data or errors.

5. Review and Submit

   • Resolve any validation issues.

   • File return before due date to ensure smooth ITC flow.

Real Examples

Scenario	AATO	HSN Reporting	B2C Entry
Small Trader	₹3 crore	4-digit required for B2B	Optional
Manufacturer	₹8 crore	6-digit required for both	Mandatory
B2B-only Seller	Any turnover	B2B mandatory	B2C blank

Tip: If you have no B2B supplies, enter zero values in Table 12A fields to satisfy portal validations .

Practical Tips for a Smooth Filing

• Download HSN master list from the portal for reference.

• Batch invoices with identical HSN codes using “product master” features.

• Run mock validations before actual filing.

• Keep documentation ready, especially for credit/debit notes.

• Train your team on the new bifurcation to avoid last-minute mistakes.

Final Thoughts

This GSTN update marks a step towards greater transparency and precision in India's GST ecosystem. While the changes bring compliance complexity, they also present opportunities for cleaner records and faster credit processing. With the right preparation and tools, these reforms can work to your advantage.

For businesses seeking support with implementing this update or full-service compliance, Manika FinTax Solutions offers expert guidance and seamless filing assistance.

Frequently Asked Questions (FAQs)

Q1. Can small taxpayers skip filling Table 12B?
Yes, taxpayers with AATO ≤ ₹5 crore may leave Table 12B blank, but risk warnings.

Q2. What if I enter wrong HSN codes?
The portal triggers validation errors—correction is mandatory before filing.

Q3. Is Table 13 required even if no invoices issued?
Yes. If no invoices were issued, enter '0' or appropriate doc counts to validate.

Q4. Do exports need to be in Table 12B?
Exports fall under B2C and must adhere to the turnover-based HSN rule.

Q5. What if I miss the filing deadline?
Delays may lead to ITC disruptions, interest penalties, and notices. File timely.

Q6. How can I simplify compliance?
Use updated GST softwares with dropdown HSN and Table 12A/B segregation.

Call to Action

Need help navigating the new GSTR‑1 format? Contact Manika FinTax Solutions for precise and reliable GST filing assistance. Let our experts help you stay compliant and penalty-free—reach out today for paid support!

Keywords: GSTR-1 update, Table 12 split, B2B B2C HSN reporting, GST filing changes, Manika FinTax Solutions