Starting May 2025, a major update is coming to the GST return filing system (GSTR-1). The Goods and Services Tax Network (GSTN) has made an important change by splitting Table 12—which contains HSN-wise supply details—into two separate sections:
- Table 12A – for Business-to-Business (B2B) sales
- Table 12B – for Business-to-Consumer (B2C) sales
This move is aimed at improving the accuracy of data, simplifying return filing, and helping the government track transactions more effectively. It’s a step toward better compliance and reduced errors, especially in ITC (Input Tax Credit) matching.
What’s Changing and Why It Matters
Earlier, all HSN-wise sales data—whether made to businesses or consumers—was clubbed under one table in GSTR-1. This led to confusion, data mismatches, and compliance issues.
The new format addresses this by clearly separating:
- B2B supplies in Table 12A – where the buyer is a registered business and claims ITC.
- B2C supplies in Table 12B – where the sale is to an end consumer who doesn’t claim ITC.
For now, Table 12A is mandatory but in “warning mode”, meaning your return will be accepted even if HSN details are incomplete—but not for long. Table 12B is optional for small businesses (turnover up to ₹5 crore).
What’s New in Reporting: A Quick Look
Table | Sales Type | HSN Details | Status |
12A | B2B (to registered businesses) | Mandatory (warning mode) | From May 2025 |
12B | B2C (to consumers) | Optional for turnover ≤ ₹5 crore | From May 2025 |
This change will also support future upgrades like auto-filling GSTR-1 from e-invoice data and better ITC reconciliation.
Why This Reform is Important
This isn’t just a cosmetic change—it’s a big step toward smarter tax governance. Here’s what it will help with:
- Better detection of fake invoices and ITC fraud
- Automated return preparation in the future
- Easier cross-verification of business claims
- Improved policymaking through detailed transaction data
It aligns with the government’s goal of making GST more digital, accurate, and taxpayer-friendly.
Benefits of Early Adoption
Businesses that get used to this new format early will enjoy:
- Fewer GST audits
- Quicker ITC processing
- Smoother return filing with fewer errors
GSTN is laying the groundwork for:
- Linking Table 12A with e-invoices
- Real-time HSN validations
- Automated GSTR-1 filing
- Accurate matching across GSTR-1, 2B, and 3B
How Expert Mantra Makes This Easy
If your business still depends on manual GST filing or outdated software, this change may feel challenging. That’s where Expert Mantra can help.
Expert Mantra is already updated to handle the May 2025 changes. Here’s how it simplifies GST compliance:
Feature | Benefit |
Auto-separates B2B & B2C invoices | Accurate entry in Tables 12A and 12B |
Built-in HSN Code Library | Reduces manual errors |
Real-time GSTR-1 validation | Catches issues before filing |
E-invoice sync | Ready for future auto-filing updates |
Smart reconciliation | Matches sales with GSTR-2B and flags mismatches |
With Expert Mantra, GST compliance becomes smooth, accurate, and future-ready.
Conclusion
The separation of B2B and B2C sales in GSTR-1’s Table-12 is a significant step towards a more transparent and efficient GST system. It ensures better classification, fewer errors, and more data-driven governance.
Businesses using tools like Expert Mantra will not only stay compliant but also save time, reduce audit risk, and enjoy faster ITC settlements.
