Gstr1 delay

Hi Adarsh! Here’s what happens if GSTR-1 for FY 2019-20 was not filed, but GSTR-3B was filed correctly:

1. Impact of Not Filing GSTR-1:

• GSTR-1 contains details of outward supplies (sales). Not filing GSTR-1 means the department and buyers don’t get the invoice details.

• This can cause mismatch issues in ITC (Input Tax Credit) claims by your buyers since they rely on GSTR-1 for matching.

• It may also lead to notices or penalties from GST authorities for non-filing of GSTR-1.

2. Penalty & Late Fee:

• Late fee for non-filing of GSTR-1 is ₹50 per day (₹25 CGST + ₹25 SGST) up to a maximum of 5% of the turnover in the state.

• Since this is for FY 2019-20, late fees will have accumulated, and the client needs to pay them.

3. Possible Actions:

• File the pending GSTR-1 as soon as possible (late filing is allowed with payment of late fees).

• Reconcile GSTR-1 with the GSTR-3B already filed to ensure no discrepancies.

• Be prepared to pay the late fees for delay.

• Keep records and be ready to respond to any GST notices.

4. Effect on Monthly Returns Going Forward:

• If the client continues filing GSTR-3B timely, the impact will mainly be on the mismatch of ITC for the past period.

• However, not filing GSTR-1 regularly can invite scrutiny and penalties.

Summary:
File the pending GSTR-1 immediately with applicable late fees. Correct filing of GSTR-3B is good, but GSTR-1 filing is mandatory and needs compliance to avoid issues.