GSTN Advisory | Dropdown HSN & Mandatory Table 13 in GSTR-1 from May 2025

GSTN Advisory dated 01-05-2025

The Goods and Services Tax Network (GSTN) has issued an advisory announcing the commencement of Phase-III of changes to Form GSTR-1 and Form GSTR-1A, applicable from the return period of May 2025 onwards. These changes are part of a broader initiative to streamline compliance, enhance data accuracy, and standardise return filing practices for taxpayers.

1. Table 12 – Dropdown for HSN Code & Segregation of Supply Types

In this phase, significant modifications have been introduced to Table 12, which captures the HSN-wise summary of outward supplies –

• Manual HSN Code Entry Discontinued –
  Taxpayers will no longer be able to enter HSN codes manually. Instead, a dropdown menu will be provided to select the applicable HSN code, ensuring uniformity and minimising data entry errors.
• Bifurcation into B2B and B2C –
  Table 12 will now be segmented into two parts –

1. 1. B2B (Business-to-Business) supplies
   2. B2C (Business-to-Consumer) supplies
      This division aims to improve clarity in reporting and allow for better classification of transactions based on the nature of the recipient.

These changes are intended to strengthen the reconciliation process between the supplier’s outward supplies and the recipient’s inward supplies, ultimately supporting improved compliance monitoring.

2. Table 13 – Now Mandatory for All Taxpayers

In addition to changes in Table 12, Table 13 of Form GSTR-1/1A is being made mandatory from the May 2025 return period.

• Purpose of Table 13 – This table pertains to the summary of documents issued during the tax period, including –

1. 1. Invoices
   2. Revised invoices
   3. Debit and credit notes
   4. Receipt vouchers
   5. Delivery challans, etc.

• Why It Matters – Making Table 13 mandatory enhances transparency by providing a complete audit trail of transactional documents issued by the taxpayer. This will assist in better cross-verification by the authorities and ensure consistency in return data.

3. Compliance and System Preparedness

Taxpayers and GST return preparers are advised to –

• Familiarise themselves with the updated format of GSTR-1 and GSTR-1A,
• Ensure that internal accounting or ERP systems are reconfigured to align with the dropdown-based HSN reporting,
• Begin capturing document-wise data to ensure seamless completion of Table 13 from May 2025 onwards.

These upgrades by GSTN are in line with its objective of digitizing compliance, improving data quality, and facilitating faster refunds, reduced mismatches, and enhanced analytics for tax administrators.