GSTR-1 is a return that is mandatory for every certified trader to file. This return contains details of outward supplies by that trader. The term ‘outward supply’ has been defined in the Central Goods and Services Tax Act, 2017. It implies all sales of either goods or services or of both, by methods of,
“…sale, transfer, barter, exchange, license, rental, lease or disposal or any other mode…”;
Depending on the agreement entered or promised to be entered by the taxable person in due course of his business transaction.
Thus, in simple terms the GSTR-1 return would include details of all such transaction in which a supply of goods/services/both, has taken place by any of the above-mentioned means. Here the ‘taxable person’ is the trader himself. He is the supplier, therefore, the point of initiation of the transaction. He will have to, in this category of return, give details of the good/services of the supply transaction, and also, the details of the person who is in receipt of the supply. Thus, this becomes the proof of the ‘inward supply’ of the receiver of the supply. Therefore, this particular return is often referred to as the base document which holds the foundation of the compliance to GST in India. The supply details include both within the state and outside the state sale transactions. Other required details include:
- Other than the registered persons, details of the outward supplies made to end customers.
- Compulsorily those supplies of which the value exceeds 2.5 lacs.
- All outward supplies valued below 2.5 lacs made to the end customers totaled together.
- Credit notes details.
- Debit note details.
- Amendments made to GST invoice.
- Changes made to the earlier done outward supplies.
- Details of Non-GST supplies.
- Details of Nil- Rated Supplies.
- Details of exempted supplies.
- Export sales details along with the HSN Code of the goods supplied.
- Details of paid tax and the remaining liabilities that have arisen from the advance receipts.
The GSTR-1 is a return which is either filled monthly or quarterly, depending on the turnover of the trader. If the trader has sales up to 1.5 crores, he shall have to file his returns quarterly. Whereas, if his sales are more than 1.5 crores it shall be mandatory for him to file returns every month. This rule applies even when there are no transactions made in a particular month.
Recently, the deadline for filling this return has been extended by the government. Therefore, the deadline to file the returns when filled on a monthly basis is:
- For the month of April – 31st May;
- For the month of May -10th June; and,
- For the month of June -10th July.
For when the returns are to be filled quarterly, for the term of April-June, is July 31st.
It is also important to know who are and are not to file this particular return. It has already been mentioned that all registered traders have to file it compulsorily. Although there are some registered persons who are exempted from the GSTR-1 returns. These include: Non- resident taxable person, taxpayers who are liable to collect TCS and deduct TDS, OIDR Suppliers, Input Supply Distributors, dealers registered under the Composition scheme or small taxpayers, Input Service Distributors.
Another question that comes to mind here is what is to be done in case there is any error in filling the return. The errors generally made in filling out the details are rectifiable at the point when the receiver of the supplies receives an invoice of all details. If, due to any reasons, the errors have been rectified at that point, the next option is to report the error to the Judicial Authority. They can, if are convinced of the existence of the error, can rectify the same.
A system has been designed which asks for the details of the taxable registered person like the GSTIN, unique combination of the financial year and the invoice, which rectifies the error of double filling, if made.
An error in the invoice that has been uploaded with the return can be rectified only till the point the receiver has not accepted the erroneous invoice. If the receiver has accepted the wrong document, no changes can be made. At this point, the only option is to file a supplementary invoice or credit note to rectify the previous document.
On errors in transactions which are inter-state category and have been filled as intra-state categories, the registered payer who has made the error will have to firstly pay the IGST amount to the ministry and secondly apply to claim back the excess amount (CGST/SGST).
Are you facing difficulty in filing GSTR-1? Don’t worry! This is your one-stop guide to finally understanding GSTR for what it is, and how is it to be filed.
We recently marked the first anniversary of the implementation of Goods and Sales Tax (GST), yet despite its tremendous success, there have been many setbacks. The historical amalgamation of 17 taxes and cesses implemented by the Central Government and State Government has caused a lot of confusion, and many are unable to file their GST Returns properly.
GST is applicable on ‘supply’ of goods or services, as against the previous model on the manufacture of goods or on sale of goods or services, and is a dual tax levied with the Centre and the States simultaneously levying tax on a common base.
Before understanding GSTR-1, you must apprehend what are GST Returns.
GST Return is a document which has to be filed compulsorily by all registered businesses, with the tax administrative authorities, in order to calculate their tax liability. It is filed monthly/quarterly and/or annually, based on the type of their business, and contains information pertaining to purchases, sales, input and output tax credit.
-What are the types of GST Returns?
Ordinarily, any regular business is required to file three types of returns monthly/quarterly stating details of their supplies for that period. As per the CGST Act, there are mainly 3 Forms which have to be tendered, being GSTR-1, GSTR-2 and GSTR-3.
|GST Form||Due Date||Particulars|
|GSTR-1||Before the 10th of every month||Outward supplies of taxable goods and/or services effected|
|GSTR-2||Before the 15th of every month||Inward supplies of taxable goods and/or services effected, claiming input tax credit|
|GSTR-3||Before the 20th of every month||Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax|
Therefore, GSTR-1 is a monthly return which reports the accumulated information of outward supplies of sale of goods/services effected, on whose basis the taxpayer’s GST Liability is generated. It has a total of 13 sections.
If the recipient feels that any information in any invoice entered on the GSTR-1 is pending, or missing, then he can update it by way of GSTR-1A. This form is auto-drafted and helps the taxpayer in revising and reconciling relevant information.
Thus the invoices uploaded by us in GSTR-1 will be auto-populated in the GSTR-2 of the receiver of the goods, and made available for viewing to him. It will help the receiver reconcile his purchases, and communicate any mistakes in GSTR-1.
-Who is required to file GSTR-1?
Every registered taxable person, other than an input service distributor/ composition taxpayer/persons liable to deduct tax u/s 51 / persons liable to collect tax u/s 52 is required to file GSTR declaring all outward supplies of the taxable period. GSTR-1 has to be filed even if no transaction was incurred during that period.
-How is GSTR-1 Form filed?
One can file GSTR-1 either through Online Mode or Offline Mode.
Returns can be filed by way of Online Mode, through the GST Portal, only when a taxpayer has less than 500 Business-to-Business invoices for that taxable period. If a business has more than 500 invoice receipts for that taxable period, then it is to be submitted through the Offline Mode.
One can file through Offline Mode, through various offline utilities, excel based utility and 3rd Party Software and through Goods and Service Provider. If a business has less than 500 B2B invoices, then also it can opt for offline mode.
-What categories of outward supplies are recognized by the GSTR-1?
B2B supplies are between business to business, i.e., which have GSTIN, whereas B2C supplies are between business to consumer, i.e., wherein supplies made to those recipients who don’t have GSTIN. B2C (Large) is a special category of supplies, available only in intra-state supply, for those supplies whose invoice value is more than Rs.2.5 Lakh.
B2B, B2C Large and Export Invoices are to be filed in invoice form, because the government wants to keep a check on them. On the other hand, B2C invoices are filed in a consolidated form.
-When is GSTR-1 due?
The due dates for GSTR-1 are based on your annual turnover. Until March 2018 the due dates for the return has been notified. Businesses with sales of up to Rs. 1.5 crore will file quarterly returns. Other taxpayers with sales above Rs. 1.5 crore have to file monthly return.
–What details have to be furnished in GSTR-1?
- Invoice level details of B2B supplies including those having UIN;
- Invoice level details of B2C Supplies
- Details of Credit/Debit Notes issued by the supplier against invoices;
- Details of export of goods and services
- Summarized state level details of supplies to consumers
- Summary Details of Advances received in relation to future supply and their adjustment
- Details of any amendments
- Nil- rated, exempted, and non-GST supplies; and
- HSN/SAC wise summary of outward supplies.
Therefore, one must fill in the GSTR-1 Form very carefully, as it lays down the foundation for GSTR-2. Moreover it is on the basis of which a taxpayer’s liability is generated and his input tax credit is formulated.