GSTR-1/1A Table 12 Bifurcation: Separate Reporting of B2B and B2C HSN-wise Summary from May 2025

The Goods and Services Tax Network (GSTN) has notified a crucial change in the filing of GSTR-1/1A returns, effective from May 2025 onwards. Registered taxpayers will now be required to separately report HSN-wise summary of B2B and B2C outward supplies in Table 12 of GSTR-1 and 1A. This bifurcation seeks to enhance data analytics, improve accuracy in reporting, and facilitate better tax compliance monitoring.

This article explains the implications, legal basis, and practical steps for businesses and professionals to comply with the new requirement.

1. Legal Framework and Notification Reference

This change is brought under the powers conferred by Section 37 of the Central Goods and Services Tax Act, 2017 (CGST Act), which deals with the furnishing of details of outward supplies. The reporting format for GSTR-1 is prescribed under Rule 59 of the CGST Rules, 2017.

While the GST Council recommended this change earlier, the GSTN advisory dated 25 May 2025 formally notified that from the May 2025 tax period onwards (due in June 2025), taxpayers must report B2B and B2C supplies separately in Table 12 of GSTR-1/1A.

2. What is Table 12 of GSTR-1/1A?

Table 12 in GSTR-1 captures the HSN-wise summary of outward supplies, which includes:

• HSN Code

• Description of goods/services

• Total taxable value

• Applicable tax (IGST/CGST/SGST/UTGST/cess)

• Quantity (optional for services)

• Unit of measurement

Earlier, combined HSN data for all supplies (B2B + B2C) was reported. Now, this data must be segregated into:

• B2B Supplies (i.e., supplies made to registered persons)

• B2C Supplies (i.e., supplies made to unregistered persons)

3. Implications for Taxpayers

A. Data Segregation and ERP/System Changes

Taxpayers must update their billing and accounting systems to generate HSN summaries separately for B2B and B2C. This could involve:

• Modifications to ERP software

• Reconciliation routines to validate bifurcation

• Enhanced review of invoices before GSTR-1 filing

B. Impact on Large Taxpayers

Taxpayers with aggregate turnover above ₹5 crore are already mandated (per Notification No. 78/2020 – Central Tax) to report 6-digit HSN codes. Now, they must report such HSN-wise details separately for B2B and B2C, increasing compliance responsibility.

C. Improved Data Analytics for GSTN

This move supports the government's objective to:

• Match HSN data with Input Tax Credit (ITC) claims

• Identify tax evasion patterns

• Strengthen sectoral analysis of supply chains

4. Practical Compliance Steps

1. ERP Readiness: Configure systems to auto-classify supplies as B2B or B2C at the invoice level and generate HSN summaries accordingly.

2. Monthly Review: Implement a robust review mechanism before GSTR-1 filing to ensure accurate HSN-wise segregation.

3. Staff Training: Ensure the finance and accounts team understands the new classification and reporting requirement.

4. Reconciliation Process: Match HSN-level data between sales registers, GSTR-1, and books of accounts.

5. Consequences of Non-Compliance

Failure to comply with the updated format may lead to:

• Validation errors on the GST portal at the time of filing

• Mismatches in ITC reconciliation for B2B recipients

• Penal consequences under Section 125 (general penalty up to ₹25,000)

6. Conclusion

The bifurcation of Table 12 in GSTR-1/1A marks a significant step towards increased transparency and improved tax governance under GST. While it may initially require system upgrades and procedural changes, the long-term benefits include better compliance management and reduced litigation due to mismatched data.

Businesses must act promptly to align their reporting systems with the new requirement, effective from the May 2025 return period.