GSTN's Stance on Table 12 Validations

Infosys_GSTN, through a recent tweet, highlighted a key distinction in the validation process for Table 12 of GSTR-1. As per the current system design, only the values in the "B2B Supplies" tab of Table 12 are subject to mandatory validation. This implies that businesses are required to accurately declare HSN summary details for their B2B transactions.

In contrast, the GST system permits greater flexibility for the "B2C Supplies" tab of Table 12. Taxpayers can enter any numerical value, or even leave the field empty, as this particular field is not mandatory. This design consideration is crucial for understanding the different compliance requirements for B2B and B2C transactions.

CBIC Clarifies HSN Code Mandate and System Updates

CBIC_India's tweets provided further context and explained the rationale behind these design choices, drawing from existing notifications and recent advisories.

Optional HSN for Small Businesses in B2C Supplies:

CBIC reiterated that Notification No. 12/2017-Central Tax dated June 28, 2017 (as amended) grants an important concession. Registered persons with an aggregate turnover up to five crore rupees in the previous financial year have the option not to mention the number of digits of the HSN Code in tax invoices issued for supplies made to unregistered persons (i.e., B2C supplies). This means that for such taxpayers, providing an HSN code for B2C transactions in their invoices is optional.

Bifurcation and Validations in GSTR-1 Table 12:

CBIC also referred to a significant update from GSTN's advisory dated May 1, 2025. This advisory informed taxpayers that Table 12 of GSTR-1/1A has been bifurcated into two distinct tabs: "B2B Supplies" and "B2C Supplies." Taxpayers are now required to enter HSN summary details for each type of supply separately under their respective tabs.

To enhance data accuracy and consistency, certain validations have been introduced to match the HSN-wise value declared in Table 12 with values declared in other tables of the return. This is a critical development for ensuring comprehensive and accurate reporting.

Rationale for B2C Flexibility in Table 12:

Aligning with Infosys_GSTN's observation, CBIC clarified that in the case of B2C supplies, since the HSN code is optional (as per Notification No. 12/2017-Central Tax as amended), the system has not made the "B2C Supplies" tab in Table 12 mandatory. Consequently, the system allows taxpayers with an aggregate turnover up to Rs. 5 crore in the previous financial year to enter any value or leave the HSN summary for B2C supplies blank.

Key Takeaways for Taxpayers:

• B2B HSN Summary is Mandatory: Ensure accurate and complete HSN summary details for all B2B supplies in Table 12 of GSTR-1. System validations are in place to cross-check these values.
• B2C HSN Summary is Optional for Small Businesses: If your aggregate turnover in the previous financial year was up to Rs. 5 crore, you have the flexibility to either provide HSN summary details for B2C supplies in Table 12 or leave it blank.
• Understand the Bifurcation: Familiarize yourself with the new "B2B Supplies" and "B2C Supplies" tabs in Table 12 and ensure you are reporting HSN details under the correct category.
• Stay Updated: Regularly refer to advisories from GSTN and notifications from CBIC for any further changes or clarifications regarding GST compliance.

These clarifications provide much-needed guidance to businesses, ensuring they accurately understand and comply with the HSN reporting requirements under GST.

**

Extract of Tweets

@Infosys_GSTN Twitted as follows

•  As per the current implemented design GST system is only validating the values in Table -12 of GSTR-1 concerning the B2B table which is mandatory. Whereas the GST system is allowing any numerical value to be entered in B2C table of Table-12 of GSTR-1, even it could be left empty as the said field is not mandatory.

@cbic_india Twitted as follows

• Vide notification No. 12/2017-Central Tax dated 28th June, 2017 (as amended), a registered person having aggregate turnover up to five crores rupees in the previous financial year may not mention the number of digits of HSN Code, in a tax invoice issued by him under the said rules in respect of supplies made to unregistered persons. So, B2C supplies by a taxpayer whose turnover is upto Rs. 5 crore in the previous financial year has the option not to mention HSN code in his invoice.
• GSTN vide advisory dated 01st May 2025 has informed taxpayers that Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, "B2B Supplies" & "B2C Supplies". Taxpayers need to enter HSN summary details of B2B Supplies and B2C Supplies separately under respective tab. Certain validations have been introduced to match the HSN wise value declared in Table 12 with the values declared in other tables of the return. In case of B2B supplies, the HSN summary is mandatory.
• In case of B2C supplies, as the HSN code is optional (vide Notification No. 12/2017-Central Tax as amended), the system has not made the B2C table mandatory i.e., system allows the HSN summary to be entered any value/ can be left blank by a taxpayer having aggregate turnover upto Rs. 5 crore in the previous Financial Year.