New Rules for Filing GSTR-1 from January 2025, How to File

New Rules for Filing GSTR-1 from January 2025, How to File

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New Rules for Filing GSTR-1 from January 2025: The Goods and Services Tax Network (GSTN) has introduced several changes to the GSTR-1 filing process since January 2025. These changes aim to streamline the filing process, improve accuracy, and ensure compliance. This article will provide an overview of the new rules and how they impact GST-registered suppliers.

Table of contents

Key Changes in GSTR-1 Filing

  1. HSN Code Reporting: One of the significant changes is the mandatory use of HSN codes. Manual entry of HSN codes is no longer allowed. Instead, taxpayers must select the correct HSN code from a dropdown list. This change aims to reduce errors and ensure consistency in reporting.
  2. Bifurcation of Table-12: Table-12 of GSTR-1 has been bifurcated into two tabs: B2B (Business-to-Business) and B2C (Business-to-Consumer). This separation allows for more accurate reporting of supplies and helps in better validation of data.
  3. Validation of Supply Values: New validations have been introduced to ensure the accuracy of supply values reported in different tables. These validations will check the values of B2B and B2C supplies against their respective sections in GSTR-1. Initially, these validations will be in warning mode, meaning discrepancies will not block the filing of GSTR-1.
  4. Customized Descriptions: A new field called “Description as per HSN Code” has been introduced. This field will auto-populate with a personalised description based on the selected HSN code, reducing the chances of errors.

Impact on Taxpayers

The new rules for filing GSTR-1 are expected to have several impacts on taxpayers:

  1. Improved Accuracy: The mandatory use of HSN codes and the introduction of validations will improve the accuracy of GSTR-1 filings. This will help in reducing discrepancies and ensuring that the data reported is consistent and reliable.
  2. Simplified Process: The bifurcation of Table 12 into B2B and B2C tabs simplifies the reporting process. Taxpayers can now report their supplies more accurately, reducing the chances of errors and making the filing process more straightforward.
  3. Compliance: The new rules ensure better compliance with GST regulations. By reducing errors and improving accuracy, taxpayers can avoid penalties and ensure that their filings are compliant with the latest regulations.

How to File GSTR-1 Under the New Rules

To file GSTR-1 under the new rules, taxpayers need to follow these steps:

  1. Login to the GST Portal: Access the GST portal using your credentials.
  2. Navigate to GSTR-1: Go to the GSTR-1 section and select the return period (January 2025).
  3. Enter Details: Enter the details of your supplies in the respective sections (B2B and B2C).
  4. Select HSN Codes: Use the dropdown list to select the correct HSN codes for your supplies.
  5. Review and Validate: Review the entered details and ensure that there are no discrepancies. The system will provide warnings if there are any validation issues.
  6. Submit and File: Once you have reviewed and validated the details, submit and file your GSTR-1 return.

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