GST

GSTR-1 – Return Filing, Format, Eligibility and Rules

GSTR-1

To comply with the new GST Regime, all those eligible under it must file GST Returns, which specify income details for clarity and calculate the amount of tax liability liable to be paid. Thus, it has become important to have GST-compliant invoices for sales and purchases in order to be able to file GST Returns. When it comes to filing GST Returns, GSTR-1 is one of the most important forms because the information filed under GSTR-1 is used as the foundation for all other forms. In this article, we will first take a look at what GSTR-1 is and then try to understand the technicalities revolving around this form, which a taxpayer must keep in mind while filing this form.

GSTR-1

Before we delve straight into the technicalities, let us first try to understand what GSTR-1 is. Any person involved in the supply of goods needs to specify the supply and purchase details. GSTR-1 is a crucial filing requirement for registered taxpayers. It needs to be submitted on a monthly or quarterly basis, depending upon the specific category of the taxpayer. This return serves as a comprehensive record of a taxpayer’s sales and outward supplies, and it is imperative to accurately mention all the relevant details in the GSTR-1 sales return. Thus, GSTR-1 must encompass all the transactions related to sales and supplies conducted by the taxpayer within the specified tax period.

What is Outward Supply?

‘Outward Supply’ refers to the retailing of goods or services or both. This may be done by sale, transfer, exchange, license, rental or disposal, or any other mode or agreed to be made by such person in the course of business.

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Who is required to file GSTR-1?

Every registered taxpayer is required to file the GST return and thus GSTR-1, which is a record of the outward supplies made during that tax period; however, there are certain entities that have been exempted from this mandatory requirement. These are as follows:

  • Input Service Distributor (ISD)
  • Non-Resident Taxable Persons
  • Taxpayers who have opted for the composition in the given financial year
  • Persons obligated to Deduct Tax at Source
  • Persons obligated to Collect Tax at Source
  • Suppliers of OIDAR (Online Information and Database Access or Retrieval Services)

Due Date for filing GSTR-1

Form GSTR-1 may be filed monthly or quarterly. In case the taxpayer opts to file it monthly, it shall be filed on or before the 11th of the subsequent month, and in case it is filed quarterly, the same shall be filed on or before the 13th of the month following the relevant quarter.

Repercussions for delay in filing GSTR-1

In case the registered taxpayer under the GST fails to comply with the due date, a penalty would be attracted in such a case, which is as follows:

ActCGSTSGSTTotal
Late fee for per-day delayRs.25Rs.25Rs.50
Maximum late fee  when the annual turnover in the previous financial year is up to Rs.1.5 croreRs.1,000/-Rs.1,000/-Rs. 2,000/-
Maximum late fee in case the annual turnover is between Rs.1.5 crore – Rs.5 croreRs.2500/-Rs.2500/-Rs.5,000/-
Maximum late fee In case the turnover is more than Rs.5 croreRs.5,000/-Rs.5,000/-Rs.10,000/-

Nil GSTR-1

As discussed, every registered taxpayer is required to file GSTR-1, and this is regardless of whether there have been any business transactions during the taxation period or not. In such a case, a Nil GSTR-1 is to be filed compulsorily when there are no sales or supplies recorded during a particular period.

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A late fee in case of Nil GSTR-1

ActCGSTSGSTTotal late fees to be paid
Late Fees for per-day delayRs. 10/-Rs. 10/-Rs.20/-
Maximum Late feeRs. 250/-Rs. 250/-Rs. 500/-

Revision of GSTR-1

GSTR-1, once filed, cannot be changed or revised under the GST regime. However, any mistake or error made can be rectified in the GSTR-1 filed for the next tax period, month, or quarter, as the case may be. Therefore, the taxpayer must be extremely careful and diligent while filing the GSTR-1 Form. Otherwise, the opportunity to rectify any inadvertent error will only be made available in the next return.

Mode of filing GSTR-1

There are two modes to file GSTR-1:

  1. Online: This method is preferably used by taxpayers for small transactions.
  2. Offline: This method is preferred for bulk transactions and is filed with the help of Excel.

Essential requirements before filing GSTR-1

In order to file GSTR-1, you are required to have access to the following essential documents and information:

  • PAN-based GSTIN (Goods and Services Tax Identification Number)
  • Log-in credentials for GST Portal
  • Valid DSC (Digital Signature Certificate) unless you can E-sign as per your categorization.
  • Aadhar Number
  • Registered Mobile Number

Other documents that the taxpayer must have access to while filing the GSTR-1 form are:

  • All detailed invoices
  • Details pertaining to B2B, B2C Sales
  • Details pertaining to Inter-State and Intra-State Transactions
  • Details relating to non-GST supplies, exempted supplies, etc.

How to file GSTR-1?

Those looking to file GSTR-1 must follow the following steps:

  • Log in to the GST Portal 1 using your credentials.
  • Direct to the “Services” tab and select “Returns Dashboard”.
  • Select the relevant month and the financial year for which the returns are to be filed and enter “search”.
  • Choose to select the “GSTR-1 Prepare Online” option.
  • Enter the required details on the page “GSTR-1.”
  • Click on the “Summary” Option to generate the summary of the return filed.
  • Confirm the details entered and “Submit.”
  • Select the name of the authorized person for filing purposes.
  • Click on the “File with EVC” Option. Enter the OTP (Time Password) received to complete the verification process.
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Details filed in GSTR-1

GSTR-1 captures all the outward supplies made during the month to the registered businesses (B2B). These details are captured either at the invoice level or at the rate-wise level. Form GSTR-1 encompasses 13 tables that are required to be filled with the relevant data. However, not all tables are applicable to every registered taxpayer. These details are as follows:

TableDetails to be provided
Part 1-GSTINYou are required to enter the PAN-based GSTIN.
Part 2- Name of the TaxpayerEnter the name of the taxpayer if not already auto-filled.
Part 3-Gross TurnoverThe detail pertaining to the gross turnover of the previous financial year is to be provided here.
Part 4- Taxable Outward Supplies that are made to Registered PersonsThe details pertaining to the taxable supplies made to the registered persons, including the normal taxable supplies, all supplies subject to reverse charge, and all supplies made by E-commerce operators, are to be mentioned here.
Part 5 –Details Regarding Outward Inter-State SuppliesThe details relating to all the taxable supplies made to the unregistered individuals in other states in which the invoice value exceeds Rs. 2.5 Lakhs are to be highlighted here.
Part 6 – Details of all the Zero-Rated Supplies and all Deemed Exports SuppliesAll zero-rated supplies and deemed exports (supply made to EOUs, SEZs, etc.) are to be mentioned here, along with the details of the supplies made outside India. These details are to be mentioned along with the shipping bill number and the Date of export, and in case these are not available, then the same can be updated in the return filed next month.
Part 6A-Exporters Claiming GST RefundsThese details are required to be furnished by the exporters claiming GST refunds. It is the statement of the outward supplies of the exporter, required to be filed by every registered taxpayer who wants to claim a refund on taxes paid on exports.
Part 7 – Taxable Supplies Made to Unregistered Persons (Net of Debit and Credit Note)The details pertaining to the items in taxable supply accountability sold to an unregistered dealer are to be furnished here.
Part 8- Details of all the NIL Rated, Exempted, and Non-GST Outward SuppliesThe details relating to supplies that are exempted, nil-rated, or non-GST, which have not been included in the above-mentioned tables, are to be furnished here.
Part 9 – Details of all the Amendments to the Taxable Outward Supplies to an Unregistered IndividualThe details pertaining to the amendments made to the details of outward taxable supplies have to be mentioned here, including the amendments made in debit and credit notes.
Part 10 – Details of all the Amendments to the Taxable Outward Supplies to an Unregistered Individual FurnishedThe details pertaining to the amendments made to any taxable outward supplies made to an unregistered individual from an earlier tax period are required to be furnished here.  
Part 11 – Consolidated Statement of Advance ReceivedAll the details pertaining to the advances received are to be included here. This may increase or reduce the overall GST Liability.
Part 12 – Outwards Supplies HSN Wise SummaryThe taxpayer must classify and consolidate all the taxable supplies with the help of HSN Codes, along with the description of the goods and services.
Part 13 – Documents Released in the Tax PeriodAll the details relating to the invoice and the issues connected thereto, revised invoices, credit and debit notes, etc., are to be inserted here.

On submission of the GSTR-1 Form, the particulars of outward supplies supplied by the supplier will be automatically made available to the corresponding recipient mentioned in the invoice to facilitate the symmetry of records in Form GSTR-2A, GSTR-4A and GSTR-6A.

Conclusion

Since GST has been rolled out, many favourable changes have been introduced in our tax systems that have paved the way for a simple and unified tax structure. The new system mandates periodic return filing, which has helped not only the government in the calculation of tax liabilities but also the taxpayers by reducing the possibilities of any errors and mistakes on their part while filing their returns. To accomplish this high degree of monitoring, the government has introduced form-based reporting for registered taxpayers, which has simplified the entire process. One such form is the GSTR-1, which is a crucial filing requirement for registered taxpayers, and it needs to be submitted on a monthly or quarterly basis, depending upon the specific category of the taxpayer. This form serves as a comprehensive record of a taxpayer’s sales and outward supplies, and thus, it is imperative to accurately mention all the relevant details in the GSTR-1 sales return. With auto-population and categorization of data in tabular forms, the government has attempted to make the return filing process seamless for taxpayers. However, if you are still caught in the web of intricate web taxation, you may take expert advice or hire professional help.

If you wish to know anything regarding GST Returns, then you may contact Enterslice.

FAQs:

  1. Is Form GSTR-1 filing mandatory?

    Yes, filing of GSTR-1 is mandatory even if no business transaction has taken place during the taxation period.

  2. When can I Opt-in for the Quarterly Return option for filing Form GSTR-1 return?

    Quarterly filing of Form GSTR-1 can be opted for under the following conditions:
    – If your turnover during the preceding financial year was up to Rs. 5 Crore or
    – If you are registered during the current financial year and presume your aggregate turnover to be up to Rs. 5 Crores

  3. Does a person opting for a composition scheme should file the GSTR-1 form?

    No, a person opting for a composition scheme should not file GSTR-1. Rather, he is required to file GSTR-4.

  4. What is the difference between GSTR-1 and GSTR-3B?

    GSTR-3B is a summarized return, whereas GSTR-1 is a report for all output invoices and taxes levied on them. After the filing of GSTR-1, no payment relating to tax is to be made. Tax Payment is made only at the time of filing of GSTR-3B.

  5. Can I file GSTR-1 without filing GSTR-3B?

    GSTR-1 cannot be filed if GSTR-3B for the previous period has not been filed, as the tax liability declared in GSTR-1 is paid in GSTR-3B.

References

  1. https://www.gst.gov.in/

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