GSTR-1 is the monthly GST return to be filed by taxable person registered under GST. GSTR-1 will include the details of all outward supplies made in the given period. As such, all registered taxable persons are required to file GSTR-1 by the 10th of the following month (Example: GSTR-1 for the transaction month of April has to be filed before 10th May). It is the first or the starting point for passing input tax credits to the dealers.

Who need to file GSTR-1?

GSTR-1 has to be filed by “all” taxable registered persons under GST. However, there are certain dealers who are not required to file GSTR-1, instead, are required to file other different GST returns as the case may be. These dealers are E-Commerce Operators, Input Service Distributors, dealers registered under the composition scheme, Non-Resident dealers and Tax deductors. It has to be filed even in cases where there is no business conducted during the reporting month.

Process of filing GSTR-1

  • Step 1 : A taxpayer is required to login at GST Portal by using his user ID & Password
  • Step 2 : After Successfully login, user can see his dashboard
  • Step 3 : Now click on “Service Menu” and then click on Returns and you will reach at GST Return Page. This section shows all the services available on the GST portal. We can select one to proceed further

B2B invoice

Sales from a registered seller to a registered buyer

B2C (small) invoice

Sales from a registered seller to a unregistered buyers

B2C (large) invoice

Sales from a registered seller to a unregistered buyer > 2.5 lakh

Credit/ Debit notes

Sales return will be classified under credit note and vice versa

Export Invoices

Sales to countries outside India

Tax Liability (Advance payment)

Advance payments received from customers

Tax already paid on invoices

Invoices on which on advance was received and tax has already been paid

HSN/SAC summary of sales

Summary of all the sales by HSN (Goods) and SAC (Services)

To access the rules & formats of GSTR-1, please click on the link below: 

Form GSTR-1

GSTR-1 has 13 different heads that need to be filled in. The major ones are:-

  • GSTIN of the taxable person filing the return
  • Name of the taxable person
  • Total Turnover in Last Financial Year
  • Details of Taxable outward supplies made to registered persons – CGST and SGST shall be filled in case of intra-state movement whereas IGST shall be filled only in the case of inter-state movement. Details of exempted sales or sales at nil rate of tax shall also be mentioned here
  • Details of Outward Supplies made to end customer, where the value exceeds Rs. 2.5 lakhs – Other than mentioned, all such supplies are optional in nature
  • The total of all outward supplies made to end consumers, where the value does not exceed Rs. 2.5 lakhs
  • Details of Debit Notes or Credit Notes
  • Amendments to outward supplies of previous periods – Apart from these two, any changes made to a GST invoice has to be mentioned in this section
  • Exempted, Nil-Rated and Non-GST Supplies – If nothing was mentioned in the above sections, then complete details of such supplies have to be declared.
  • Details of Export Sales made – In addition to the sales figures, HSN codes of the goods supplied have to be mentioned as well
  • Tax Liability arising out of advance receipts
  • Tax Paid during the reporting period – it can also include taxes paid for earlier periods.

The form has to be digitally signed in case of a Company or an LLP, whereas in the case of a proprietorship concern, the same can be signed physically.

Common mistakes while filing GSTR-1

The mistakes can be as puny as mentioning incorrect HSN codes, Service Accounting Codes and can extend up to mentioning incorrect GSTIN, charging incorrect rates of tax, treating a sale as an intra-state sale instead of inter-state sale or vice versa, mentioning a tax invoice twice and the like. The supplier while filing the GSTR-1 can make these common mistakes. Apart from the above, situations may arise that ship to address of the customer can change. This common change can be witnessed while filing GSTR-1.

How to amend GSTR-1?

There may be cases wherein details mentioned by the supplier are incorrect. In these cases, there is a possibility for the dealers to amend the errors or omissions after filing GSTR-1. In a normal scenario, the details filed by the supplier is rejected by the recipient of the goods or services, then the supplier will receive an intimation to that effect, wherein he can amend the same. Where the recipient inadvertently accepts the invoice, oblivious of the error, then the supplier has to report the same to the Jurisdictional Authority citing such error and its rectification. The Jurisdictional Authority will have to option to make good such error, after ascertaining the facts of the case.

Where an inter-state sale is treated as an intra-state sale and subsequently

IGST is charged instead of CGST and SGST, then the supplier has to pay the amount of IGST separately to the Ministry and claim for a refund of the excess CGST or SGST. Again, he also has the option to claim input tax credit on the CGST / SGST amount inadvertently paid by him against CGST, SGST or IGST output liability, as per the prescribed rules.

In case, the supplier needs to change information in a tax invoice, which has been already uploaded in GSTR-1.

 It has to be noted that if the recipient accepts the details of the supplier as mentioned in the GSTR-1, then the supplier will have no option to amend or make any changes whatsoever in the invoice document. The supplier has to issue a supplementary invoice or a credit note against the invoice in which he wants to make any changes.

To negate the effects of the double claim of input tax credits, suppliers shall install a system, which derives a unique combination of financial year, invoice number, and the GSTIN. The system will automatically display the error in case there is a duplicate invoice being punched in.

In case of change in Point of Supply in an invoice over a reasonable period of time

This new point of supply can happen to be in a different state. In that case, SGST part charged will be reversed and passed on to the new state.

The requirements before filing Form GSTR-1

The first and foremost requirement is having a valid Goods and Services Tax Identification Number (GSTIN). The supplier will be notified with a User ID and Password that will enable the user to file returns.

Next, the supplier will be required to have a valid digital signature certificate (DSC). This DSC is obligatory for companies, LLPs (Limited Liability Partnerships) and FLLPs (Foreign Limited Liability Partnerships). Other suppliers, i.e. Proprietors, partnership concerns, HUF, etc. have the option to “E-sign” the form. In that case, a valid Aadhar Card Number is required. An OTP for verification shall be sent across on the registered mobile number as mentioned in the Aadhar Card.

Due date of filing GSTR-1

The due date for filing GSTR-1 is 10th of the following month. If the dealer does not file GSTR-1 where it is mandatory to do so, then a late fee will be charged to the dealer.

The late fee is an amount of Rs. 100 / act / day, that is Rs. 300 shall be charged on account of IGST, CGST and SGST per day. Moreover, this late fee is calculated automatically after filing of GSTR-1.

blog comments powered by Disqus