As India’s GST regime continues its evolution into a more transparent and technology-driven framework, May 2025 brings critical updates that businesses must not overlook. These updates reflect the government’s ongoing push for accuracy in reporting and a faster, more standardized tax dispute resolution mechanism.

CHANGES TO GSTR-1/1A REPORTING (Effective from May 2025 Return Period)

GSTR-1 is a monthly or quarterly return form that taxpayers registered under the Goods and Services Tax (GST) regime in India must file to report outward supplies of goods or services. Whereas GSTR-1A is a document containing the changes made to sales invoice reported in GSTR-1.

• From the May 2025 return period, taxpayers must now report HSN codes in Table 12 of GSTR-1/1A based on their Aggregate Annual Turnover (AATO).
  
  

  Turnover (AATO)	HSN Code Requirement
  Up to ₹5 Crore	4 digit HSN Codes
  Above ₹5 Crore	6 digit HSN Codes

• This move ensures greater standardization and accuracy in item classification and tax determination.
• Manual entry of HSN codes is no longer allowed. Taxpayers must select HSN codes from a dropdown list on the GST portal. The system will auto-populate the corresponding product description. This step minimizes human error and enforces compliance with official HSN classifications.
• Table 12 is now segregated for B2B (Business to business transactions) and B2C (Business to consumer transactions) supplies. This clear segregation enhances data validation and simplifies reconciliations for input tax credit and audit purposes.
• The GST system will automatically cross-validate the HSN summary in Table 12 with other key tables like table 4 and table 7 to ensure consistency.

2. MANDATORY LISTING OF DOCUMENTS IN TABLE 13

Table 13, which captures all documents issued during a tax period, is now compulsory for all taxpayers filing outward supplies in GSTR-1/1A.

Filing Restrictions Enforced by GST Portal:

• Outward supplies + Blank Table 13 = No filing allowed
  
• The system will prompt the user to fill in Table 13 before submission can proceed
  
• This ensures traceability of all financial documents and strengthens audit mechanisms.
  
  

GST APPELLATE TRIBUNAL (GSTAT) IS NOW OPERATIONAL

In a long-awaited reform, the Goods and Services Tax Appellate Tribunal (GSTAT) is now officially functional following the notification of the GSTAT (Procedure) Rules, 2025 on April 24, 2025, by the Ministry of Finance.

This development marks a major leap forward in GST dispute resolution—introducing digital efficiency, regional accessibility, and procedural uniformity.

1. Electronic Filing & Documentation

• All appeals must be filed electronically on the GSTAT Portal
  
• Forms GSTAT-01 to GSTAT-08 will be used for various types of appeals and applications
  
• Language: English only, or must be accompanied by certified translations
  

2. Mandatory fields to be included in the Appeal:

• GSTIN
  
• Appellant and respondent details
  
• Grounds of appeal
  
• Certified copies of original orders
  
• Supporting documentation
  

3. SCRUTINY, REGISTRATION & CAUSE LIST MANAGEMENT

• The Registrar will scrutinize appeals for completeness and accuracy
  
• If defects are found, appellants must rectify them before the appeal is registered
  
• Daily and weekly cause lists will be published online to maintain transparent scheduling
  
  

4. HEARINGS AND COURTROOM PROTOCOL

• Hybrid Format: Hearings may be held physically or virtually
  
• Public Access: Proceedings are open unless restricted by order
  
• Working hours: Tribunal functions from 10:30 AM to 1:30 PM and 2:30 PM to 4:30 PM on working days.
  
• Ex Parte Proceedings: The Tribunal may proceed in the absence of a party
  
• Courtroom etiquette: Dress codes, and member decorum are clearly prescribed for representations.
  
  

5. SPECIAL APPLICATIONS & INTERLOCUTORY MATTERS

Procedures are defined for:
- Stay of recovery
- Condonation of delay
- Submission of additional evidence
Any new evidence or affidavits require Tribunal permission

6. TRIBUNAL POWERS & PROCEDURAL SAFEGUARDS

• Recall dismissals
  
• Correct clerical errors
  
• Grant exemptions for procedural lapses
  
• Empowered to issue summons and demand production of relevant documents or records
  

7. PRE-DEPOSIT AND FEE STRUCTURE

• Uniformity and Predictability
  With standardized digital filing, GSTAT ensures more consistent rulings and faster resolution of disputes.
• Transparency in Publicly available cause lists, Digitally signed orders & Open courtrooms, unless otherwise ordered
• Decongested High Courts
  By handling indirect tax appeals, GSTAT will relieve burden on High Courts, expediting tax jurisprudence.
  

FINAL THOUGHTS

May 2025 is a turning point in India’s GST journey. The new compliance mandates under GSTR-1/1A and the operationalization of GSTAT both signal a move toward greater digital rigor, legal clarity, and taxpayer accountability.

At TaxOSmart, we’re committed to helping businesses stay compliant, informed, and future-ready. Whether you need help filing your returns, managing HSN classifications, or preparing for a GST appeal, our experts are here to guide you every step of the way.