Key Indian GST Compliance Updates for B2B Exporters in June 2025
Indian businesses, particularly those engaged in B2B exports, are facing significant changes in their Goods and Services Tax (GST) GSTR-1 filing procedures. These new mandates are effective from the May 2025 returns, which are due to be filed in June 2025. The Goods and Services Tax Network (GSTN) has introduced several crucial updates that will directly impact how businesses report HSN (Harmonized System of Nomenclature) codes and manage associated document details for their sales. Staying abreast of these changes is absolutely paramount for maintaining seamless operations and avoiding potential compliance pitfalls.
A major update requires the mandatory separate reporting of HSN codes for both B2B (Business-to-Business) and B2C (Business-to-Consumer) sales within Table 12 of the GSTR-1 form. The level of detail required for HSN codes has also been refined: businesses with an aggregate turnover of up to ₹5 Crore must now report 4-digit HSN codes, while those exceeding ₹5 Crore in turnover will be required to report 6-digit codes. A critical procedural change is that manual HSN entry is no longer permitted; businesses must select the appropriate HSN code from a predefined dropdown list. Once selected, the corresponding description will be auto-filled in a new field labeled “Description as per HSN Code,” aiming to enhance accuracy and standardization across filings. Furthermore, new validations are now firmly in place to cross-check the values reported in Table 12 with the values declared in other relevant parts of the GSTR-1, ensuring data consistency. In addition, Table 13, which pertains to “Documents Issued,” has become mandatory for all B2B and B2C sales, meaning it cannot be left blank during the filing process.
For businesses involved in cross-border trade, these updated GST regulations are directly relevant to export operations. Ensuring strict and timely compliance with these new rules is critical to avoid errors, processing delays, and potential financial penalties. It necessitates a thorough review of internal accounting systems and compliance processes. Teams responsible for GST filings must be fully familiar with the new HSN reporting format, understand the mandatory dropdown selection process, and ensure the proper and complete filling of both Table 12 and Table 13. Leveraging new features recently introduced by the GST portal, such as the HSN code list download button and the product name search options, can significantly help streamline these data entry and verification processes, making compliance easier and more efficient. Accurate and timely GST filings are a foundational requirement for maintaining smooth export operations and are crucial for claiming eligible refunds and benefits, such as those under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Notably, RoDTEP benefits have been reinstated for exporters under Advance Authorization, Export Oriented Units (EOUs), and Special Economic Zones (SEZs) as of June 1, 2025, further emphasizing the importance of precise and compliant documentation.
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