Most businesses filing GSTR-1 with only B2C (Business-to-Consumer) outward supplies complete the process smoothly. However, a few taxpayers have recently come across a puzzling error during filing—even when their data appears entirely correct.
This issue arises in very specific cases, particularly when Table 8 (exempt, nil-rated, or non-GST supplies) is filled, but Table 12A is left blank. While this should be legally acceptable, the GSTN system currently applies a technical validation rule that does not reflect this legal position.
Here’s what causes the error, how to know if it applies to you, and what steps you can take—only if needed.
Decoding Table 12: What It Captures in GSTR-1
Table 12 is where taxpayers report the HSN-wise summary of outward supplies, and it comprises two sections:
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Table 12A – For B2B supplies (mandatory where applicable)
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Table 12B – For B2C supplies (optional)
If your outward supplies are entirely B2C, you're right to leave Table 12A blank. But when Table 8—which captures nil-rated, exempt, or non-GST supplies—is also filled, the system currently expects a value in Table 12A, even though no B2B supplies exist.
When and Why This Error Surfaces
Based on observed cases, this system-level error arises only when all of the following conditions are present:
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The taxpayer has only B2C outward supplies
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Table 8 is populated with nil-rated or exempt entries
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Table 12A is left blank, as there are no B2B transactions to report
In this scenario, the portal may prevent submission of the return unless at least one HSN entry is added in Table 12A—despite it not being legally mandatory.
The Workaround: A Safe, Zero-Impact Solution
If you encounter this validation error, here’s a safe and straightforward workaround:
Insert a single dummy entry in Table 12A, using the following format:
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HSN Code: Any valid code (e.g., 999999)
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UQC: ‘OTH’ (Others)
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Taxable Value: 0
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All Tax Fields (IGST, CGST, SGST, Cess): 0
This workaround has no impact on tax liability but allows the return to pass the system's validation checks and be filed successfully.
Advisory Note: This step is not generally required. Apply it only if the system prevents submission due to this specific validation.
Expected Correction from GSTN
GSTN has acknowledged this behavior and is expected to release a portal update addressing this validation mismatch. Once implemented, returns with only B2C supplies and valid entries in Table 8 will no longer be forced to populate Table 12A.
Until that correction is in place, this workaround remains a legally neutral and practically effective solution.
If you're filing GSTR-1 with only B2C supplies and face no errors, continue filing as usual—no action is required.
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If you encounter an error related to Table 12A and are also reporting Table 8 entries, use the dummy-entry method to resolve the issue efficiently.
For continued clarity, timely filing, and professional support, our team at Sandeep Ahuja & Co. is here to guide you based on real-world system behavior and statutory provisions.
