GOODS AND SERVICE TAX - GSTR 1

In India’s Goods and Services Tax (GST) framework, GSTR-1 is one of the most fundamental compliance returns. Simply put, it is a monthly or quarterly statement of outward supplies.

If you sell goods or provide services as a registered GST taxpayer, GSTR-1 is where you report the details of those sales to the government.

1. What Exactly is GSTR-1?

GSTR-1 is not a tax payment return. It is purely an information return.

In it, you declare the details of all your sales invoices, debit notes, credit notes, and advanced receipts for a specific tax period. The data you file in GSTR-1 directly auto-populates your buyers' GSTR-2B, allowing them to claim their Input Tax Credit (ITC).

2. Who Must File GSTR-1?

Every registered GST taxpayer must file GSTR-1, even if there are zero sales during the tax period (in which case, a "Nil" GSTR-1 must be filed).

🚫 Who is Exempted?

The following registered persons do not file GSTR-1 (they have separate specialized returns):

• Composition Scheme Dealers (They file Form CMP-08 / GSTR-4)

• Input Service Distributors (ISD)

• Non-Resident Taxable Persons

• Tax Collectors at Source (TCS) or Tax Deductors at Source (TDS)

• Suppliers of OIDAR services (Online Information and Database Access or Retrieval)

3. Filing Frequency and Due Dates

The deadline to file GSTR-1 depends on your business's aggregate annual turnover. Taxpayers can opt into the QRMP (Quarterly Return Monthly Payment) scheme if eligible.

⚠️ The Invoice Furnishing Facility (IFF): Quarterly filers under the QRMP scheme can use the optional IFF between the 1st and 13th of the first two months of a quarter. This allows them to pass on Input Tax Credit (ITC) to their B2B buyers monthly without waiting for the quarter to end.

4. Key Structure: Structure of GSTR-1 Tables

When filing GSTR-1 on the GST Portal, the information is broken down into specific tables. Here is a simplified breakdown of the most critical tables you need to fill out:

💼 B2B Sales (Business-to-Business)

• Table 4A, 4B, 4C, 6B, 6C: Deals with taxable outward supplies made to registered GSTIN holders. Invoice-wise details must be uploaded here so your buyers can view them in their GSTR-2B.

🛒 B2C Sales (Business-to-Consumer)

• Table 5 (B2C Large): Inter-state sales to unregistered consumers where the total invoice value exceeds ₹2.5 Lakhs. These must be entered invoice-wise.

• Table 7 (B2C Small): Intra-state sales of any value, or inter-state sales under ₹2.5 Lakhs. These are reported as a consolidated net summary per state/tax rate, rather than invoice-by-invoice.

✈️ Exports & SEZ Supplies

• Table 6A: Details of all export supplies (with or without payment of IGST).

🔄 Adjustments (Credit/Debit Notes)

• Table 9B: Registered and unregistered Credit/Debit notes issued to alter an earlier invoice's value.

📦 HSN Summary & Document Details

• Table 12 (HSN Summary): Reporting the HSN (Harmonized System of Nomenclature) code summary of goods or services sold is mandatory. The required digit length (4 or 6 digits) depends on your turnover.

• Table 13 (Documents Issued): A summary statement showing the serial numbers of invoices, credit notes, and delivery challans issued during the month.

5. Sequential Filing Rules & Late Fees

The GST system enforces a strict sequential filing workflow to keep tax compliance tightly structured:

1. GSTR-1 Before GSTR-3B: You cannot file your monthly tax payment return (GSTR-3B) without filing your GSTR-1 first.

2. No Leaping: You cannot file GSTR-1 for the current tax period if the GSTR-1 for the previous tax period is pending.

💸 Late Fees & Interest

If you miss the deadline, late fees are automatically calculated and added to the next month's GSTR-3B:

• For Regular Returns: ₹50 per day of delay (₹25 CGST + ₹25 SGST).

• For Nil Returns: ₹20 per day of delay (₹10 CGST + ₹10 SGST).

• Note: The maximum late fee is capped based on your business turnover slab.

6. Amending a Filed GSTR-1

Once a GSTR-1 is submitted and filed, it cannot be edited or deleted.

If you make a mistake (like entering the wrong GSTIN or a typo in the tax amount), you can correct it in the subsequent month's GSTR-1 using the Amendment Tables (Tables 9A, 9C, 10). You simply input the original invoice details alongside the corrected details to update the government data.

CA LAKSHAY TOMAR