Summary: In May 2025, the Goods and Services Tax Network (GSTN) issued several advisories focused on enhancing taxpayer compliance through portal updates and new validations. Key changes include mandatory HSN code reporting in GSTR-1/1A Table 12 based on turnover, with dropdown selection replacing manual entry. Table 13, covering document details, is now compulsory. New validations ensure consistency of B2B and B2C supply values across different tables in GSTR-1/1A. Table 12 enhancements include separate tabs for B2B and B2C summaries, downloadable HSN lists, and a searchable product master. Aadhaar-based biometric verification has been launched nationwide for new GST registrations to curb fraud, requiring applicants to book slots and verify identities at designated centers. Invoice-wise reporting in GSTR-7, earlier scheduled for implementation in January 2025, has been postponed. Refund process updates allow invoice-based claims without linking to specific tax periods for categories such as deemed exports, SEZ supplies, and export of services. Applicants must ensure all due returns are filed, and invoices used in refund applications are locked to prevent reuse. Appeal withdrawal under the Section 128A waiver scheme has been streamlined. If withdrawal is initiated before the issuance of acknowledgment, it is processed automatically; otherwise, it requires approval. Taxpayers are advised to upload supporting screenshots showing the appeal status. Lastly, while auto-populated values in Table 3.2 of GSTR-3B were expected to become non-editable from April 2025, GSTN has deferred this change, allowing taxpayers to manually adjust the data for now. Taxpayers will be notified before final implementation. These updates aim to simplify compliance and improve accuracy in GST return filing.
During the month of May, 2025, the following advisories have been issued so far in relation to the various compliances by GSTN:
- Advisory on HSN Codes and documents
- GSTN’s new validation in GSTR-1 /1A
- Enhancements in Table 12 of GSTR 1/1A
- Table 13 of GSTR 1/1A
- Biometric Aadhaar Verification Goes LIVE Pan-India
- Invoice-wise Reporting Functionality in Form GSTR-7
- Advisory on refund filing process for recipients of deemed exports
- Updates in Refund Filing Process for various refund categories
- Appeal withdrawal under GST Waiver Scheme
- Advisory on reporting values in Table 3.2 of GSTR-3B
The gist of these advisories is summarized below:
Advisory on HSN Codes and documents
- GSTN has issued an advisory on reporting of HSN codes in Table 12 and list of documents in table 13 of GSTR-1/1A.
- As per Notification No. 78/2020 – Central Tax dated 15th October 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in table-12 of GSTR-1 on the basis of Aggregate Annual Turnover (AATO) in the preceding Financial Year.
- This is being implemented in phased manner, phase -3 of which will be implemented now.
- Phase-3 of reporting of HSN codes in Table 12 of GSTR-1 & 1A shall be implemented from May, 2025 return period. Further, table 13 of GSTR-1/1A has also been made mandatory for the taxpayers from the said tax period.
- For mandatorily reporting 4-digit HSN codes for goods & services and Mandatorily reporting 6-digit HSN codes for goods & services, it may be noted that:
- Manual user entry of HSN will not be allowed.
- HSN code can be selected from drop down only.
- A customized description mentioned in HSN m aster w ill auto-populate in a new filed called “Description as per HSN Code”.
GSTN’s new validation in GSTR-1 /1A
- GSTN has issued an Advisory on new validation in Table 12 of GSTR-1 /1A in relation to value of supplies as follows:
- 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 tables viz: 5A, 6A, 7A, 7B, 8 (recipient unregistered), 9A (export), 9A (B2CL), 9B (unregistered), 9C (unregistered), 10, 15 (recipient unregistered), 15A (recipient unregistered) 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.
- It may be noted that n case B2B supplies are reported in other tables of GSTR-1, in that case B2B tab of Table-12 cannot be left empty.
Enhancements in Table 12 of GSTR 1/1A
- GSTN has advised that the following additional enhancement have been made in Table-12 of GSTR- 1/1A:
- Table 12 of GSTR-1/1A is now bifurcated into two tabs, namely, “B2B Supplies” & “B2C Supplies”. Taxpayers need to enter HSN summary details of B2B Supplies and B2C Supplies separately under respective tab.
- A new button has been introduced in Table 12, “Download HSN Codes List”. Upon clicking of this button, taxpayer would be able to download an excel file with the updated list of HSN & SAC codes for goods and services along with their description.
- The button for “Product Name as in My Master” has now been made searchable. Taxpayer can search the description provided by them in My HSN Master and upon selection of the same, the HSN code, Description as per HSN Code, UQC & Quantity shall be auto-populated. This is an optional functionality.
Table 13 of GSTR 1/1A
- In Table 13 of GSTR 1/1A, which requires taxpayers to provide details of documents issued, is now mandatory from May 2025 return period.
- Taxpayers will no longer be able to leave this table blank and proceed with filing their return.
- If B2B or B2C supplies are reported in any table of GSTR-1 or GSTR-1A, an error message will appear if Table 13 has not been filled.
(Source: GSTN Advisory Dated 01/05/2025)
Biometric Aadhaar Verification Goes LIVE Pan-India
> The Goods and Services Tax Network (GSTN) has officially launched its Biometric-Based Aadhaar Authentication facility on pan-India basis across all states and Union Territories of India. The process involves:
-
- Booking a biometric verification slot via the GST portal
- Visiting designated GST Seva Kendras or facilitation centres
- Capturing fingerprints and facial data linked to Aadhaar for final authentication
> The key highlights of the new feature are:
-
- Slot booking is now open on the official GST portal: https://www.gst.gov.in
- The system applies to new GST applicants selected based on risk parameters
- Designed to curb fake or fraudulent GST registrations using Aadhaar spoofing
- Verification process typically takes 15–30 minutes
- Integrated with real-time UIDAI authentication mechanisms.
Invoice-wise Reporting Functionality in Form GSTR-7
- The Goods and Services Tax Network (GSTN) has issued an update in relation to invoice wise reporting in form GSTR-7.
- GSTIN had earlier amended Form GSTR-7 vide Notification No. 09/2025 – Central Tax dated 22.02.2025 to mandate invoice-wise reporting of tax deducted at source under Section 51 of the CGST Act, 2017 which was effective from 01.01.2025.
- As per the advisory, the rollout has been postponed until further notice, and deductors may continue filing Form GSTR-7 as per the existing system.
(Source: GSTN Advisory Dated 06/05/2025)
Advisory on refund filing process for recipients of deemed exports
The GSTN has issued an update in relation to changes in refund filing process under the category “on account of refund by recipient of deemed export”.
- Refund applications under this category no longer needs to be filed in chronological order of Tax Period which means taxpayers are not required to select “From Period” and “To Period” while filing refund application.
- However, taxpayers must ensure that all the returns (GSTR-1, GSTR-3B etc) due till the date of refund application, are filed.
- Under this category, the table “Amount Eligible for Refund” has been modified. The columns of the revised table are explained hereunder:
- 1 ‘Balance in ECL at the time of filing of refund application’. This column will reflect the balance available under various Head in Electronic Credit Ledger at the time of filing of application. It will be auto populated.
- 2 ‘Net Input Tax Credit (ITC) of Deemed Exports (as per uploaded invoices)’,in this column the amount of claimed ITC, under respective major Heads will be auto populated based on invoices furnished in Statement 5B.
- 3 ‘Refund amount as per the uploaded invoices’ reflects the sum of the amount of ITC claimed under all major Heads (IGST/CGST/SGST/UT) as per the invoices uploaded by the taxpayer in Statement 5B and shall be downward editable.
- 4 ‘Eligible Refund Amount’. In this column, maximum amount of ITC which is available for refund claim will be auto populated. It will be auto-calculated based on the order of debit specified in Circular No. 125/44/2019-GST dated 18.11.2019.
- 5 “Refund amount not eligible as insufficient balance in the ECL (5)”. This column reflects the difference between the total amount of claimed ITC and the total amount of ITC available in Electronic credit Ledger under various major heads.
- This functionality has been improved to maximize the amount of refund a taxpayer can claim in terms of uploaded invoices, irrespective of the fact that sufficient balance is available in the respective Head of electronic credit ledger or not. Here, the total amount of claim under various Heads (IGST, CGST,SGST) will be compared with total amount of ITC available under various heads in electronic credit ledger, simplifying the refund process.
(Source: GSTN Advisory Dated 08/05/2025)
Updates in Refund Filing Process for various refund categories
- The Goods and Services Tax Network (GSTN) has issued an advisory updating relation refund filing process for following three specific categories:
- Export of services with payment of tax
- Supplies made to SEZ Unit/SEZ Developer with payment of tax,
- Refund by supplier of deemed exports
- The requirement to select a specific tax period while filing refund applications under these categories has been removed, and the process has been shifted from tax period-based filing to invoice-based filing. The taxpayers can now directly proceed with selecting the refund category as above and clicking on “Create Refund Application”
- Further, the taxpayers can now upload eligible invoices and claim refund in the following statements:
- Export of Services with payment of Tax (Statement 2)
- SEZ Supplies with payment of Tax (Statement 4)
- In case of Deemed Exports, the application by Supplier (Statement 5B)
- Taxpayers should ensure that all the returns (GSTR-1, GSTR-3B etc.) due till the date of refund application, are filed.
- Invoices uploaded with a refund application will be locked and cannot be amended or reused for subsequent claims. They will only be unlocked if the refund application is withdrawn or a deficiency memo is issued.
(Source: GSTN Advisory Dated 08/05/2025)
Appeal withdrawal under GST Waiver Scheme
- GSTN has issued an advisory on Appeal withdrawal with respect to Waiver scheme under section 128A of CGST Act, 2017
- Waiver scheme under Section 128A mandates that any appeal against the requisite demand order should not remain pending with Appellate authority.
- In the GST system, when Appeal Withdrawal Application (APL 01W) for appeal is filed before issuance of final acknowledgment (APL 02) by the Appellate authority, then the system automatically withdraws the Appeal Application (APL 01). In such cases, the status of the appeal application will automatically change from “Appeal submitted” to “Appeal withdrawn”.
- However, if withdrawal application is filed after issuance of final acknowledgment, then the withdrawal of such appeal is subjected to the approval of the Appellate authority. Once the Appellate authority approves the withdrawal application, the status of the Appeal application changes from “Appeal submitted” to “Appeal withdrawn”.
- In both the above-mentioned cases, the status of the Appeal application is changed to “Appeal Withdrawn” which essentially fulfilled the requirement.
- It is advised by GSTN that while filing waiver application or in the already filed waiver application, taxpayers need to upload the screenshot of the appeal case folder showing status as “Appeal withdrawn”.
(Source: GSTN Advisory Dated 14/05/2025)
Advisory on reporting values in Table 3.2 of GSTR-3B
GSTN has issued an advisory on reporting values in Table 3.2 of GSTR-3B
- Vide Advisory dated April 11, 2025, it was informed that the auto-populated values in Table 3.2 of Form GSTR-3B would be made non-editable starting from the April 2025 tax period (i.e., for the return to be filed in May 2025).
- Based on the experience and in the interest of taxpayer convenience and to facilitate smooth filing, it has now been decided that Table 3.2 shall remain editable for the time being.
- Taxpayers are advised to report or amend the auto populated entries, if required and furnish their returns accurately, ensuring the correctness of the disclosed information.
- Further, taxpayers will be duly informed through a separate communication once the proposed changes are implemented on the GST Portal.
(Source: GSTN Advisory Dated 16/05/2025)
Author Bio
