GSTR-1 Filing : Due Dates, Rules, Format, Amendments & Error Prevention

GSTR-1 is a fundamental return under the Goods and Services Tax (GST) regime in India.

It mandates the reporting of outward supplies of goods and services by registered taxpayers.

Accurate and timely filing of GSTR-1 is crucial for GST compliance and for ensuring the seamless flow of Input Tax Credit (ITC) to recipients.

DisyTax provides an in-depth guide to GSTR-1, detailing its purpose, structure, filing process, table-wise analysis, and common errors to avoid.

GSTR-1 is a return that every registered taxable person (with some exceptions) must file.

It provides a detailed account of all outward supplies of goods and services made by the taxpayer.

This includes:

• B2B (Business-to-Business) supplies
• B2C (Business-to-Consumer) large supplies
• Exports
• Credit/Debit Notes
• Nil-rated, Exempt, and Non-GST supplies

The information reported in GSTR-1 is critical because it enables the recipients of these supplies to claim Input Tax Credit (ITC).

Generally, every registered taxable person is required to file GSTR-1.

However, the following are not required to file GSTR-1:

• Input Service Distributors (ISD)
• Composition Scheme taxpayers
• Non-resident foreign taxpayers
• Taxpayers liable to collect TCS (Tax Collected at Source)
• Taxpayers liable to deduct TDS (Tax Deducted at Source)

GSTR-1 is usually filed monthly.

• For taxpayers with an annual aggregate turnover exceeding ₹5 crore or those who have not opted for the QRMP scheme: The due date is the 11th of the succeeding month.
• For taxpayers with an annual aggregate turnover up to ₹5 crore who have opted for the QRMP (Quarterly Return Monthly Payment) scheme: The due date is the 13th of the month succeeding the end of the quarter.

It is essential to adhere strictly to the prescribed due dates to avoid penalties and interest.

1. Login to the GST Portal: Go to the GST portal (www.gst.gov.in) and log in using your credentials.
2. Navigate to Returns Dashboard: Go to the “Returns Dashboard” section.
3. Select the Period: Choose the relevant period (month or quarter) for which you are filing GSTR-1.
4. Prepare GSTR-1 Details: You can prepare GSTR-1 details online on the GST portal or use offline tools.
5. The information to be provided includes:

• Details of B2B invoices
• Details of B2C supplies
• Export details
• Details of credit and debit notes
• Details of nil-rated, exempt, and non-GST supplies

• Upload Invoice Details: Upload the invoice details.
• File GSTR-1: Submit your GSTR-1 using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

GSTR-1 is a crucial return that captures details of outward supplies made by a registered taxpayer.

It is structured into various tables, each designed to capture specific types of information.

Here’s a detailed breakdown of the key tables and the information they require:

4A, 4B, 4C – B2B Invoices:

Details of taxable outward supplies made to registered persons.

This includes:

• GSTIN of the recipient
• Invoice details (number, date)
• Taxable value
• Applicable tax rates (CGST, SGST, IGST)
• Tax amount

This is a core section for B2B transactions.

Accurate reporting here is crucial for the recipient to claim Input Tax Credit (ITC).

Errors in GSTIN or invoice details can lead to ITC mismatches and disputes.

5A, 5B – B2C Large Invoices:

Details of taxable outward supplies made to unregistered persons (consumers), where the invoice value exceeds ₹2.5 lakh.

This includes:

• Invoice details
• Taxable value
• Applicable tax rates
• Tax amount

This section captures high-value B2C transactions.

It helps in analyzing consumption patterns and revenue from larger consumer sales.

The threshold of ₹2.5 lakh is significant for reporting requirements.

6A, 6B – Export Invoices:

Details of exports of goods and services.

This includes:

• Invoice details
• Shipping bill details
• Port code
• Type of export (with or without payment of IGST)

This is essential for reporting export transactions, which are zero-rated supplies.

Accurate reporting is necessary for claiming any refunds or complying with export regulations.

Details like shipping bill and port code are crucial for customs and export-related processes.

9 – Credit Notes, Debit Notes:

Details of credit notes and debit notes issued to both registered and unregistered persons.

This includes:

• Details of the original invoice
• Value of the credit/debit note
• Tax impact of the credit/debit note

Credit/debit notes are important for adjusting tax liability in case of sales returns, price variations, or service deficiencies.

Proper reporting ensures that tax is adjusted correctly and avoids disputes.

11 – Tax Liability (Advance Received):

Details of any advances received from customers for which tax is payable.

This includes:

• Amount of advance received
• Tax liability on the advance

This table captures tax liability arising from advance payments.

GST is payable at the time of receipt of advance in certain cases, and this table ensures its reporting.

Key Considerations:

• Accuracy is paramount.
• Reconciliation is essential.
• Timely filing is crucial.
• Technology utilization is important.
• IFF is important in QRMP.

4A, 4B, 4C – B2B Invoices:

ITC Flow Engine: This table is the engine that drives Input Tax Credit (ITC) flow.

Accurate reporting here is paramount.

Errors can lead to:

• ITC Mismatches: If the supplier reports incorrect GSTIN or invoice details, the recipient may face difficulties in claiming ITC.
• This can disrupt their cash flow.
• Reconciliation Challenges: Taxpayers need to reconcile this data with their purchase register meticulously.
• Mismatches can trigger notices from tax authorities.
• System-Level Validation: The GST system uses this data for auto-population in GSTR-2B.
• Therefore, accuracy impacts system-level validations and ITC matching.
• Place of Supply Relevance: Correct determination of the place of supply is critical, especially for IGST transactions, as it determines the state where the tax revenue will accrue.
• Amendment Implications: Changes to B2B invoices in subsequent GSTR-1 filings have a cascading effect on the recipient’s ITC, requiring careful tracking.

5A, 5B – B2C Large Invoices:

• Anti-Evasion Measure: This table acts as an anti-evasion measure by capturing high-value transactions with unregistered persons.
• It helps tax authorities monitor potential underreporting of sales.
• Data Analytics: The data from this table is valuable for tax authorities to analyze consumption patterns, particularly in specific sectors.
• Threshold Sensitivity: The ₹2.5 lakh threshold is a key determinant.
• Businesses need to have systems in place to identify and report these invoices accurately.
• Interplay with E-way Bill: These transactions often intersect with e-way bill requirements.
• Consistency between GSTR-1 reporting and e-way bill details is crucial.

6A, 6B – Export Invoices:

• Zero-Rated Supply Reporting: This table is critical for reporting zero-rated supplies (exports).
• Correct reporting is essential for:

• Refund Claims: Exporters claiming refunds of IGST paid on exports need accurate data in this table.
• LUT/Bond Compliance: For exports under Letter of Undertaking (LUT) or bond, this table is used to track the movement of goods or services without upfront tax payment.

• Foreign Exchange Implications: Export data also has implications for foreign exchange regulations and reporting.
• SEZ Supplies: Supplies to Special Economic Zones (SEZs) are also treated as zero-rated and reported in a similar manner, requiring careful differentiation.

9 – Credit Notes, Debit Notes:

• Post-Sale Adjustments: This table reflects post-sale adjustments to the original transaction.
• Key implications:

• ITC Reversal/Claim: Credit notes reduce the supplier’s output tax liability and require a corresponding reversal of ITC by the recipient (if applicable).
• Debit notes have the opposite effect.
• Impact on Tax Liability: These notes directly impact the tax liability of the supplier and need to be reported accurately to avoid discrepancies.
• Time Sensitivity: There are time limits for issuing credit notes, which businesses need to adhere to.
• Amendment Mechanism: Credit/debit notes often serve as a mechanism for amending previously reported invoices.

11 – Tax Liability (Advance Received):

• Time of Supply: This table is linked to the “time of supply” provisions under GST.
• Key considerations:

• Revenue Recognition: It affects the timing of revenue recognition for GST purposes.
• Contractual Terms: The terms of the contract determine when tax is payable on advances.
• Adjustment in Final Invoice: The tax paid on advances needs to be adjusted in the final invoice.
• Service Sector Relevance: This table is particularly relevant for the service sector, where advance payments are common.

Advanced Considerations:

• Technology Integration
• Data Analytics
• Legal Implications
• Dynamic Changes

Taxpayers opting for the QRMP scheme have the Invoice Furnishing Facility (IFF).

This facility allows them to declare their B2B invoices for the first two months of a quarter.

This ensures that the recipient taxpayers can avail of Input Tax Credit (ITC) in a timely manner.

Accurate GSTR-1 filing is crucial to avoid discrepancies and penalties.

Here are 10 common errors taxpayers make:

1. Incorrect GSTIN: Entering the wrong GSTIN of the recipient, which can lead to ITC issues for them.
2. Wrong Invoice Details: Providing incorrect invoice numbers, dates, or values.
3. Mismatch in Tax Amount: Discrepancies between the tax amount reported in GSTR-1 and the actual tax charged in the invoice.
4. Failure to Reconcile Data: Not reconciling GSTR-1 data with books of accounts, leading to errors and omissions.
5. Incorrect Reporting of Exports: Errors in reporting export invoices, shipping bill details, or port codes.
6. Errors in Credit/Debit Notes: Incorrectly reporting or omitting credit/debit note details.
7. Misclassification of Supplies: Classifying supplies under the wrong tax rate or HSN code.
8. Duplication of Invoices: Reporting the same invoice more than once.
9. Omission of Amendments: Not incorporating necessary amendments from previous periods.
10. Late Filing: Filing GSTR-1 after the due date, leading to penalties and interest.

• Maintain accurate and organized records of all sales transactions.
• Regularly reconcile GSTR-1 data with books of accounts.
• Adhere strictly to GSTR-1 due dates.
• Use GST software and tools to minimize errors.
• Verify all details before submitting GSTR-1.

Purpose of Amendment: Amendments in GSTR-1 allow taxpayers to correct errors or omissions made in a previously filed GSTR-1 return. This ensures accurate reporting of outward supplies.

What Can Be Amended: Taxpayers can generally amend details related to:

• B2B invoices (including taxable value, tax rates, place of supply, and changes from domestic to export supply).
• B2C Large invoices.
• Debit and Credit Notes issued to registered and unregistered persons.
• Export invoices.
• Amendments to taxable outward supplies reported in Table 4, 5, and 6 of previous returns.
• Amendments related to advances received and adjusted.
• Amendments to details of supplies made through e-commerce operators.

What Cannot Be Amended: Certain details typically cannot be amended at the invoice level, including:

• Recipient’s GSTIN if the recipient is changing.
• Converting a tax invoice to a bill of supply.
• Applicability of Reverse Charge Mechanism (RCM).
• Type of Export (With or Without Payment).
• Invoices that have already been accepted or modified by the recipient.
• HSN summary of outward supplies in certain cases.
• Adding a new Place of Supply.

Process of Amendment: Amendments are generally made through the GST portal in the amendment section of GSTR-1 for the relevant tax period. Taxpayers need to select the details to be amended, make the necessary corrections, and submit the amended return.

Role of GSTR-1A: While historically GSTR-1A was a separate form for amendments based on recipient’s actions, recent updates have integrated the amendment process largely within GSTR-1. However, an optional FORM GSTR-1A has been introduced (effective from August 2024) to allow taxpayers to add or amend details of the current tax period’s GSTR-1 before filing GSTR-3B for the same period. This helps in ensuring accurate reflection of tax liability in GSTR-3B.

Time Limit for Amendment: Amendments to details in invoices of a financial year can generally be made up to the 30th of November of the following financial year or before the filing of the annual return for that financial year, whichever is earlier.

Impact of Amendments: Amendments can impact the tax liability reported. Under-reported tax due to errors will need to be paid with interest. Amendments also affect the Input Tax Credit (ITC) available to the recipient in their GSTR-2A/2B.

Importance of Accuracy: Given the limitations on amendments and the potential for penalties or issues with ITC for recipients, it is crucial to ensure the accuracy of details furnished in the original GSTR-1 filing.

Documentation: Taxpayers should maintain proper documentation to support any amendments made to their GSTR-1 filings.

DisyTax can provide comprehensive assistance to businesses with GSTR-1 filing:

• GSTR-1 preparation and filing
• Data reconciliation and validation
• Error detection and correction
• IFF compliance and reporting
• GST software implementation and support
• Advisory services on GSTR-1 related matters

GSTR-1 is a critical component of GST compliance.

A thorough understanding of its structure, filing process, and potential errors is essential for businesses to ensure accuracy and avoid penalties.

DisyTax offers the expertise and support needed to navigate GSTR-1 filing effectively and maintain overall GST compliance.

Important Note: Always refer to the official GST portal and consult with a tax professional for the most accurate and up-to-date information.