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by sanjay gupta,
What is GSTR-1, in full form?
Form GSTR-1 return under the GST regime
presents all outward supplies of goods and services made by a registered
taxpayer. Such details include both taxable sales, exempt supplies, and
zero-rated supplies. Filing this return is, therefore, obligatory for most
businesses to provide the system of GST tracking of the sale made by the
supplier to facilitate the claim of Input Tax Credit for buyers.
This return is very crucial for ensuring
compliance, data reconciliation between suppliers and buyers, and transparency
in tax filings.
1. GSTR-1 Filing: Due Dates
The due date for filing GSTR-1 would be based
on whether the taxpayer is a monthly or quarterly filer. Here is a look:
A. Monthly Filers
- Who is eligible?
Taxpayers whose turnover exceeds ₹5 crores in
the previous financial year or who have opted for a monthly filing.
- Due Date:11th of the next month. So, GSTR-1 of January 2024 to be filed by 11th February 2024.
B. Quarterly Filers (Under QRMP Scheme)
- Who is it for?
Taxpayers with a turnover of up to ₹5 crore can use quarterly filing under the Quarterly Return Monthly Payment (QRMP) scheme
- Due Date: The 13th of the month following the quarter.
For example, the GSTR-1 for January-March 2024 should be filed by 13th April 2024.
2. Format of GSTR-1
GSTR-1 is broadly divided into several sections, which are in fact designed to capture outward supply details in a very meticulous manner. Understanding these will help in filing accurately:
GSTR-1 is a return for furnishing outward supplies. In brief, it would contain the following:
1.Table 3: B2B sales-GSTIN of buyers, invoice details, and tax amounts.
2.Table 4: B2C Large - Sales to consumers exceeding Rs. 2.5 lakh, along with tax details.
3.Table 5: B2C Small - Sales to consumers up to Rs. 2.5 lakh, state-wise.
4.Table 6: Exports/SEZ - Export details (zero-rated or IGST).
5.Table 7: Credit/Debit Notes – Particulars of notes issued.
6.Table 8: Advances – Advance received against sales.
7.Table 9: Nil-rated/Exempt – Supplies nil-rated or exempt.
8.Table 10: Summary – Total taxable value and tax payable.
9.Table 11: HSN Summary – Summary of goods by code.
10.Table 12: Tax Summary – Summary of taxes payable: CGST, SGST, IGST.
Each of the above sections is designed to calculate the amount of tax payable that will be used in GSTR-3B.
3. Late Fees for GSTR-1 Filing
Filing GSTR-1 after the due date attracts penalties. The format for late fees is given below:
a. Late Fee Calculation
In the case of a regular taxpayer:
₹ 50 per day of delay (₹ 25 for CGST + ₹ 25
for SGST).
For Nil filer:
₹ 20 per day of delay (₹ 10 for CGST + ₹ 10
for SGST).
b. Maximum Late Fee Cap
The late fees are capped at ₹10,000 per return (₹ 5,000 for CGST and ₹ 5,000 for SGST).
Impact of Late Filing
Cannot file GSTR-3B unless GSTR-1 is filed,
and hence will lose eligibility to file it. Buyer's ITC claim will create
issues on account of mismatch.
4. Eligibility for Filing GSTR-1
Who is required to file GSTR-1?
Every taxpayer who has taken GST registration,
except:
Taxpayers under the composition scheme.
Input Service Distributors.
Non-resident taxable persons.
Persons deducting TDS under GST.
OIDAR service providers-exemption in some
cases.
QRMP Scheme and Eligibility
Taxpayers whose annual aggregate turnover does not exceed ₹5 crores can opt for the QRMP scheme.
They need to file GSTR-1 quarterly, but they
can use the Invoice Furnishing Facility to upload invoice particulars for the
first two months of a quarter.
5. Rules and Key Points for GSTR-1 Filing
a. Revisions and Amendments
No Revisions Allowed: GSTR-1, once filed, cannot be revised. Any corrections are to be carried out in subsequent returns under Table 9.
b. Auto-Population of Data
Particulars filed in GSTR-1 will auto-populate
in the following:
Recipient's GSTR-2A and GSTR-2B.
GSTR-3B of the supplier, thus making the ITC
claiming process seamless.
c. E-Invoicing Mandate
Taxpayers with an annual turnover exceeding
₹10 crore must issue e-invoices. These are automatically reflected in GSTR-1,
reducing manual errors.
d. HSN Code Reporting
Reporting of HSN codes for outward supplies is
mandatory:
Businesses with turnover above ₹5 crore:
6-digit HSN required.
Businesses with turnover below ₹5 crore:
4-digit HSN required.
6. Step-by-Step Guide to Filing GSTR-1
Step 1: Log In to GST Portal
Visit GST Portal and log in using your
credentials.
Step 2: Navigate to GSTR-1
Go to the Services tab, select Returns >
Returns Dashboard, and choose the relevant tax period.
Step 3: Fill Out the Form
Enter details in the respective tables,
including invoice-wise data for B2B and B2C supplies, nil-rated supplies, and
amendments.
Step 4: Save and Review
Save the data periodically to avoid losing
progress. Review all details before submission.
Step 5: Submit and File
Submit the return and file it using a Digital
Signature Certificate (DSC) or an e-signature. Ensure you complete the process
by paying any applicable late fees.
7. Common Challenges in GSTR-1 Filing
Data Errors:
Mistakes in invoice numbers or GSTINs can lead to mismatches in GSTR-2A and 2B.
Reconciliation Issues:
The discrepancies will be avoided if the regular reconciliation of GSTR-3B is made with books of accounts.
ITC Denials:
There is a loss of Input Tax Credit for the period by buyers due to delay in filing of GSTR-1.
System Downtime:
Heavy traffic on due dates affects the GST portal, making it suffer from technical glitches.
8. Benefits of Timely and Accurate Filing of GSTR 1
Ensures adequate flow of ITC to recipients.
Late fees and penalties can be avoided.
Keeps a transparent relationship with vendors
and buyers.
Reduces the chances of notices or audits from
GST authorities.
Conclusion
GSTR-1 filing is among the most crucial
compliance issues under the GST regime in India. Timely and correct filing will
not only save penalties but will also keep the tax credit mechanism smooth for
your business partners. By understanding the due dates, format, and rules of
2024, one can make the filing process quite easy and keep oneself at the
forefront in one's GST compliance.
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