GSTR-1 Automation from Jan 2025 | New Table 12 | How to add HSN in GSTR 1

Summary

This video provides a detailed explanation about the upcoming changes to GST Table 12, particularly focusing on the automation of HSN-wise reporting. From January 2025, Table 12 will be split into two parts—B2B and B2C. The new changes emphasize automating data entry, eliminating manual inputs, and reducing errors with a dropdown list for selecting HSN codes. The GST portal will validate data for B2B and B2C supplies, providing warnings for discrepancies but still allowing users to file. The video also covers the importance of updating HSN codes in GST filings and invoices, with additional course offerings to help professionals stay updated with GST and taxation procedures.

Takeaways

• 😀 The new GST Table 12 changes will automate the reporting process, specifically the HSN-wise summary of supplies.
• 😀 The automation will split Table 12 into two parts: one for B2B (Business-to-Business) and one for B2C (Business-to-Consumer).
• 😀 From January 2025 onwards, businesses must report HSN codes using a drop-down list to reduce errors in the GST portal.
• 😀 The reporting requirements for HSN codes vary depending on the turnover, with businesses having a turnover of up to 5 crore reporting four-digit HSN codes and those above 5 crore reporting six-digit codes.
• 😀 The implementation of HSN-wise summary has been phased, with the third phase set to activate with the new changes to Table 12.
• 😀 Businesses will no longer manually enter data into Table 12; the system will auto-populate certain fields based on the HSN code selection.
• 😀 The new system will also validate the data entered in Table 12 against other GST returns (such as GSTR-1) to ensure consistency.
• 😀 Errors or mismatches in data will trigger a warning but will not block the filing of the GST return.
• 😀 A new validation feature will require businesses to ensure that the B2B supply data in Table 12 is not left empty if reported in GSTR-1.
• 😀 The HSN and SAC codes must now be reported in both invoices and GST returns, as it has become mandatory for compliance.

Q & A

What is the primary change in Table 12 of the GST filing process?

The primary change in Table 12 is the automation of the HSN-wise reporting system. The data will now be auto-populated, eliminating the need for manual data entry.

How will the data entry in Table 12 change starting from January 2025?

From January 2025, GST filers will no longer manually enter data into Table 12. Instead, the HSN code will be selected from a dropdown list to reduce errors, and the product descriptions will be auto-filled from the HSN master.

What is the new structure of Table 12?

Table 12 will now be split into two parts: one for B2B (business-to-business) transactions and another for B2C (business-to-consumer) transactions.

What happens when a mismatch occurs in the data entered in Table 12?

If there is a mismatch in the data entered, the system will show a warning message but will still allow the user to proceed. The validation will only function as an alert for now.

What is the significance of HSN code reporting for GST filers?

HSN code reporting is mandatory for GST filers to classify their goods and services accurately. Depending on turnover, four-digit or six-digit HSN codes must be used for B2B transactions.

Why has the government introduced the validation system for Table 12?

The validation system has been introduced to ensure that the data reported in Table 12 matches the details provided in the GST returns (like the 4A, 4B, 6B, etc.). This is to reduce errors and discrepancies.

Will GST filers face issues if they forget to fill out Table 12?

Starting in 2025, it will be mandatory to fill out Table 12, especially for B2B supplies. If B2B data is reported in other parts of the GST return but Table 12 is left empty, the system will generate a warning.

How will GST filers select the HSN code after the automation change?

GST filers will now select the appropriate HSN code from a dropdown list instead of entering it manually, minimizing errors and making the process more efficient.

What new features are expected in the future updates for Table 12?

The future updates for Table 12 will include more advanced validation checks and possibly more detailed automation for B2B and B2C transactions. Separate validation will be implemented for each section.

What kind of educational resources does the website 'c guruji.com' offer?

The website offers courses related to GST, income tax, accounting, and automation. These courses are designed to help individuals improve their job prospects, enhance their practice, or start their own business.