GST Returns

All you need to know about GSTR 1

This article will focus on the meaning, applicability, benefits of GSTR 1 and the recent amendments made.

What is GSTR 1?

GSTR 1 form is a GST return form for the taxpayers to file the details of outward supplies every 11^th of the following month for those who cross the turnover of more than 1.5 crores.

The taxpayers, whose turnover is less than 1.5 crores, will have to file quarterly returns.

Contents of GSTR 1

The following are the contents of GSTR 1:

• Business’s GSTIN;
• The legal name of the business;
• Aggregate turnover in the last Financial year;
• Taxable supplies or sales made to registered persons;
• Taxable supplies or sales made to unregistered persons (exceeding 2.5 lakhs);
• Amendments made in taxable supplies or sales made to the registered business in the previous months;
• Amendments made in taxable supplies or sales made to an unregistered business in the earlier months;
• Details of advances received by the customer during that month;
• Zero-rated & deemed export sales;
• Sales not covered under section 5 to an unregistered person:
  • all sales made through an e-commerce operator
  • inter-state sales upto Rs. 2.5 lakhs to unregistered persons
• Supplies that are exempted;
• HSN – wise summary of outward supplies; and
• The documents issued in the month that contain the serial number of the debit, credit notes).

How to file GSTR 1?

The GSTR 1 form contains 13 sections in total displayed in the tabular form:

Table 1, 2 & 3	It contains the details of GSTIN & the aggregate turnover in the preceding year.
Table 4	It contains the details of the taxable outward sales or supplies made to registered persons except for the zero-rated supplies and deemed exports.
Table 5	It contains the details of taxable outward sales or supplies made to unregistered persons not more than the value of Rs. 2.5 lakhs.
Table 6	It contains the details of zero-rate supply & deemed exports.
Table 7	It contains the details of taxable supplies to an unregistered person, excluding the supplies covered.
Table 8	It contains the details of exempted, non- GST & nil rated outward supplies.
Table 9	It contains the details of the debit & credit notes, refund vouchers issued during the period & any amendments to the taxable outward supply for the earlier taxable period.
Table 10	It contains the details of debit 7 credit notes to unregistered persons.
Table 11	It contains the details of advances received or adjusted in the current tax period or any amendment in the information in the earlier tax period.
Table 12	It contains the HSN- wise summary of outward supplies.
Table 13	It entails the documents issued during the tax period.

Who should file GSTR 1?

GSTR 1 return must be filed by every taxpayer who is registered. When there was no transaction made in the month, then also GSTR 1 is to be filed. For this purpose (since the first week of July 2020), there is a way to file GSTR 1 through an SMS.

The taxpayers who are registered and do not have to file this form are:

• The taxpayer who is liable to collect TDS & TCS.
• Non-resident taxable persons.
• Input Service Distributors (ISDs).
• Taxpayers registered under the GST composition scheme.
• OIDAR (Suppliers of Online Information Database Access and Retrieval Services) under section 14 of the IGST Act.

How can the taxpayers file GSTR 1?

The following steps are to be followed by the taxpayers to file GSTR 1:

Step 1 – Visit the GST portal^[1] & login using the credentials.

Step 2 – Click on the service tab.

Step 3 – Select returns & then go to the returns dashboard.

Step 4 – Select the applicable FY & Return Filing Period.

Step 5 – Click on search. 

Step 6 – Under the first search result – “Details of outward supplies of goods or services”, select “Prepare Online”.

Step 7 – Select “Prepare Offline” if your number of invoices is more than 500.

Step 8 – Fill in the sections (the taxpayers have to fill only the relevant sections). 

What is the due date of filing GSTR 1?

The following are the due dates of filing a GSTR 1 return:

GSTR 1 filing	Due date
Monthly (to be filed if the turnover is above 1.5 crores)	11th of the subsequent month
Quarterly (to be filed if the turnover is below 1.5 crores)	The last date of the month following the end of the quarter

How can GSTR 1 be revised?

It is important to note that once GSTR 1 has been filed, it cannot be revised. However, any mistake made can be in the next month’s or quarter’s GSTR returns.

Late fees & Penalty

Before the notification issued on 16^th February 2021, the Penalty for not filing return was Rs. 200 per day of the delay, i.e., Rs. 100 as per the CGST Act and Rs. 100 as per the SGST Act. The late fee is charged after the due date.

However, after the notification issued on 16^th February 2021, the late fees or the Penalty for not filing the GSTR 1 is Rs. 50 per day, and in case of no returns, Rs. 20 per day, from the date after the due date.

It is important to note that the late fees are currently not demanded as a part of the payment challan in the form PMT-06 at the time of filing GSTR 3B. However, the officer may demand the late fee or Penalty for the period delayed when assessing returns.

Conclusion

GSTR 1 is a return form filed monthly or quarterly by the taxpayer declaring their outward sales or supplies. It includes the details based on invoice, rate, and state of outward supplies or sales made during the month.

Read our article:Govt. Allows Taxpayers to File GSTR-3B Returns in a Staggered Manner