B2C HSN Summary table inserted in GSTR 1 by Infosys GSTN

B2C HSN Summary table inserted in GSTR 1 by Infosys GSTN

The Goods and Services Tax Network (GSTN), which is powered by Infosys, has implemented significant changes to the GSTR-1 filing process, particularly concerning the HSN (Harmonized System of Nomenclature) summary table.

Key Changes to B2C HSN Summary in GSTR-1:

• Bifurcation of Table 12: Effective from the May 2025 return period, Table 12 of GSTR-1 (which deals with HSN-wise summary of outward supplies) has been bifurcated into two distinct sections: “B2B Supplies” and “B2C Supplies.” This means taxpayers must now report HSN summary details for B2B and B2C transactions separately under their respective tabs.
• Mandatory HSN Selection from Dropdown: Manual entry of HSN codes is no longer allowed. Taxpayers are required to select the correct HSN code from a predefined dropdown list. This aims to reduce errors and ensure uniformity in reporting.
• Auto-population of Description: When an HSN code is selected from the dropdown, a customized description from the HSN master will auto-populate in a new field called “Description as per HSN Code.
• Value Validations: The system now performs validations that compare the value of B2C supplies reported in Table 12 with the values reported in other relevant B2C tables of GSTR-1 (e.g., Table 5A, 6A, 7A, 7B, 8 (unregistered), 9A (export/B2CL), 9B (unregistered), 9C (unregistered), 10, 15, and 15A (unregistered)). Initially, these validations are in “warning mode,” meaning taxpayers can still file even if mismatches occur, but they will receive an alert.
• Downloadable HSN Code List: A “Download HSN Codes List” button has been introduced on the GST portal, allowing taxpayers to download an Excel file with the updated list of HSN & SAC codes.
• Searchable “Product Name as in My Master”: This optional functionality allows taxpayers to search for their custom product descriptions, which will then auto-populate the corresponding HSN code, description, UQC (Unit Quantity Code), and quantity.

Why these changes?

These changes, implemented in phases, aim to:

• Enhance the accuracy and clarity of GST filings.
• Reduce manual errors and discrepancies.
• Streamline the validation process on the GST Portal.
• Improve data for better reconciliation.

Taxpayers need to adapt their accounting and return filing processes to comply with these new requirements, ensuring accurate segregation of B2B and B2C transactions and correct HSN reporting.