Attention B2C GST filers who are facing problem with GSTR-1: GSTN issues new advisory, here’s what experts say

The Goods and Service Tax Network (GSTN) has issued an advisory tweet mentioning that in table 12 of GSTR-1 return, B2B supplies information is mandatory, but B2C is optional. This means those Goods and Services Tax (GST) registered taxpayers who have to file GSTR-1 return on or before June 11, 2025 for June 2025 tax period need to mandatorily give their B2B sales information and HSN code, otherwise the system won’t allow filing it.

However, this has created another problem namely for those GST registered taxpayers who are selling their services or products to end consumers i.e. those with only B2C sales and no B2B sales.

What did GSTN say about this problem?

In a tweet dated June 7, 2025, GSTN said: As per the current implemented design, the 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.”

Chartered Accountant Deep Koradia says: “GSTN has changed the GSTR-1 form and now separate reporting B2B supply and B2C Supply in HSN summary is required. It's mandatory to report GSTR-1 B2B supply invoice details and its corresponding HSN codes from the May 2025 tax period. B2C supply details are optional for now. But the problem is for those GST registered taxpayers who don’t have any B2B supplies. The system is not letting these taxpayers file their GSTR-1 return as their B2B supply HSN code column is blank, the deadline for which is June 11, 2025.”

The image below shows how GSTR-1 filers can’t file GSTR-1 due to absence of B2B sales.
Source: CA Deep Koradia

Buyers GST input tax credit may be delayed if sellers can’t file GSTR-1 on time

Koradia explains: “Ideally GSTN should make both B2C and B2B supply reporting mandatory ONLY IF there is such supply in their respective tab, but instead of solving this problem, GSTN issued a clarification that B2B is mandatory, and B2C is optional. As a direct impact of sellers being unable to file their GSTR-1 return, buyers will not be able to claim their input tax credit for May 2025 tax period as their GSTR-3B will not get auto-populated with this detail. The reason for this is that the seller's GSTR-1 return feeds information into the buyer's GSTR-3B”

What is the solution to this problem?

Koradia says: “Till the time GSTN comes out with a solution for this problem, we have found a makeshift solution. Sellers with no B2B sales should write 0 (zero) in the HSN column of B2B and then fill up the B2C data. This will enable them to file GSTR-1 returns successfully.”

Chartered Accountant Bimal Jain, founder, A2Z Taxcorp says: "Taxpayers engaged exclusively in B2C supplies might encounter Table 12 (HSN Summary for B2B Supplies) prompting for data while filing GSTR-1. If you're facing this issue:

• Simply enter "0" (zero) in Table 12A. This workaround enables the GST portal to validate and let you proceed with the return filing.
• If the issue persists, don't hesitate to raise a ticket or contact the GSTN helpdesk for support."

What is table 12 of GSTR-1 return?

In an advisory GSTN said: In Table-12 validation with regards to value of the supplies have also been introduced.

• These validations will validate the value of B2B supplies shown in different Tables viz: 4A, 4B, 6B, 6C, 8 (recipient registered), 9A, 9B (registered), 9C (registered), 15 (recipient registered), 15A (recipient registered) with the value of B2B supplies shown in table-12)
• Similarly, validations will validate the value of B2C supplies shown in different tablesviz: 5A, 6A, 7A, 7B, 8 (recipient unregistered), 9A (export), 9A (B2CL), 9B(unregistered), 9C (unregistered), 10, 15 (recipient unregistered), 15A (recipientunregistered) with the value of B2C supplies shown in Table-12.
• In case of amendments, only the differential value will be taken for the purpose of validation.

Chartered Accountant Mandar Telang, Secretary - Bombay Chartered Accountants' Society (BCAS), says: Government has implemented Phase-3 of HSN Code Reporting in GSTR-1/1A:

Key updates include:

• Bifurcation of Table 12: GSTR-1/1A now separates B2B Supplies and B2C Supplies, requiring taxpayers to enter HSN summary details separately.
• New Offline Tool (V.3.2.2): Introduced to facilitate compliance.
• B2B Validation Checks: The system will match values reported in various B2B tables with Table 12. Any mismatch will trigger an alert, ensuring consistency in reporting.
• B2C Validation: Reports suggest that validation checks for B2C supplies are not yet operational for the May 2025 return.

"There are some concerns regarding filing challenges for taxpayers dealing only in B2C supplies, as they lack B2B data. However, this issue remains unverified," says Telang from BCAS.