New modifications in GSTR-1 from April 2024

New modifications in GSTR-1 from April 2024

In this post, we will look at the all-new enhancement in GSTR-1: Simplifying HSN Data Entry for Taxpayers Generating E-Invoices.

The Goods and Services Tax Network (GSTN) has made major changes to the GSTR-1 return filing process to improve outward supply reporting. The most recent change is adding a new option in “Table 12 HSN wise summary of outward supplies” specifically tailored for taxpayers who generate e-invoices.

Taxpayers can import HSN (Harmonised System of Nomenclature) data directly into GSTR-1 from e-invoices created with this new feature. This innovation is set to transform how taxpayers manage their HSN data, providing improved efficiency and accuracy in compliance.

The key advantage of this new functionality is that it automates HSN data entry for taxpayers who generate electronic invoices. Previously, taxpayers had to manually enter HSN information for all outgoing shipments, which might be time-consuming and prone to errors. Importing HSN data from e-invoices allows taxpayers to decrease the human labour required for HSN reporting considerably.

This is how the new feature works:

  1. Automatic Importation: Taxpayers who create electronic invoices will find it easier to record HSN-specific information in GSTR-1. The system supports automatically importing HSN data from e-invoices into the correct return sections.
  2. Streamlined Data Entry: For HSN codes that have generated e-invoices, taxpayers must no longer manually enter the related information in GSTR-1. Instead, the system will construct the HSN-Wise summary depending on the information contained in the e-bills.
  3. Manual Entry for Non-E-Invoice Transactions: When e-invoices were not generated for specific transactions, taxpayers can manually enter the HSN data into GSTR-1. This ensures thorough reporting while reducing manual burden.
  4. Time Savings for B2B Suppliers: This change will greatly benefit taxpayers who mainly conduct business-to-business (B2B) transactions. They can save important time that would otherwise be spent manually importing HSN data from e-invoices.
  5. Enhanced Compliance and Accuracy: The new feature improves GST compliance and encourages higher accuracy in HSN reporting by decreasing manual interaction. This, in turn, helps create a more efficient and transparent tax filing system.

Taxpayers must use this new functionality to optimize their automation successfully. By utilizing technology, taxpayers may streamline compliance processes, reduce errors, and ensure prompt and correct reporting of external supplies.


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