GSTR-1 HSN Summary Clarified What B2B and B2C Suppliers Must Know
In a recent clarification, GSTN and CBIC have updated the GSTR-1 HSN summary requirements. The update mandates reporting HSN details for B2B supplies in Table 12, while offering relief to small B2C suppliers. Here’s a simplified breakdown of what these changes mean for taxpayers.
What Is Table 12 in GSTR-1?
Table 12 of GSTR-1 captures the HSN-wise summary of outward supplies. This helps tax authorities track goods and services via their classification codes (HSNs/SACs).
Starting April 2025, the CBIC and GSTN have enforced validation rules distinguishing B2B and B2C reporting.
GSTR-1 HSN Summary: Key Updates by CBIC & GSTN
| Category | Turnover Threshold | Table 12 Requirement | HSN Entry Rule |
|---|---|---|---|
| B2B Supplies | All registered persons | Mandatory | Validation enforced |
| B2C Supplies | Up to ₹5 crore | Optional | Can be left blank |
| B2C Supplies | Above ₹5 crore | Mandatory | Validation enforced |
📌 Separate tabs for B2B and B2C entries are now active in the GSTR-1 online form.
What Goes Where? HSN Summary Rules
B2B HSN Reporting (Compulsory)
Includes outward supplies to:
- Registered recipients (4A, 4B, 6B, 6C, 8)
- Debit/credit notes for registered recipients (9A, 9B, 9C)
- Nil-rated, exempted, or non-GST registered recipient supplies (15, 15A)
B2C HSN Reporting (Optional or Mandatory)
Includes:
- Exports (6A) – Treated as B2C
- Unregistered outward supplies (7A, 7B, 8)
- B2CL (interstate supplies > ₹2.5L to unregistered) – 9A, 9B, 9C
- Nil-rated or exempt unregistered supplies (10, 15, 15A)
Expert View: What Taxpayers Should Do
CA Ramesh Patel, GST Practitioner:
“Small businesses with turnover below ₹5 crore should verify if they’ve been wrongly flagged for HSN errors in B2C reporting. This update now clarifies they can skip it without system errors.”
Legal Reference & Source Links
- CBIC GST Portal Advisory – March 2025
- CBIC Circular No. 248/05/2025-GST
- GSTR-1 User Manual on gst.gov.in
Why This Matters
- Reduces filing errors for small suppliers.
- Enables accurate HSN validation for B2B compliance.
- Simplifies GSTR-1 filing with separate tabs.
- Enhances GSTN data analytics using validated HSN codes.
Step-by-Step: How to File GSTR-1 HSN Summary
- Log in to www.gst.gov.in
- Go to Returns → GSTR-1 → Table 12
- Use the new separate tabs for B2B and B2C
- Fill HSN summary based on your turnover & supply type
- Validate and save
- Submit and file the return
FAQ on GSTR-1 HSN Summary
Q1. Is HSN mandatory for exports in GSTR-1?
Yes. Even though exports are treated as B2C, HSN is mandatory under Table 12 if turnover exceeds ₹5 crore.
Q2. Can I leave B2C HSN blank if my turnover is under ₹5 crore?
Yes, as per CBIC’s advisory, it is optional and can be left blank.
Q3. What happens if I enter HSN incorrectly in B2B?
The system will trigger an error. HSN validation is now strictly enforced.
Conclusion: File GSTR-1 Right, Stay Compliant
With new clarifications on GSTR-1 HSN summary, the CBIC has made it easier for businesses to distinguish between mandatory and optional fields. If you’re unsure how these rules apply to you, our experts at Efiletax are here to help.
📞 Contact Efiletax today for professional GST return filing and compliance support.
Summary
GSTR-1 HSN summary rules clarified: B2B HSN entry in Table 12 is now mandatory and validated by GSTN. For B2C, taxpayers with turnover up to ₹5 crore can leave HSN blank. Separate tabs for B2B and B2C simplify filing and reduce errors.