GSTR-1 (Statement of Outward Supplies) is a monthly/quarterly return filed by registered taxpayers under the Goods and Services Tax (GST) regime in India. It captures details of all outward supplies (sales) made by the taxpayer during the tax period.
Are you a business owner in India? If so, you must be aware of the Goods and Services Tax (GST) and the various forms that need to be filed. One of the most important forms is Form GSTR-1. In this article, we will explore everything you need to know about Form GSTR-1, its purpose, and how to file it accurately. So, let’s dive in!
What is Form Form GSTR-1?
Form GSTR-1 is a monthly or quarterly return that needs to be filed by every registered taxpayer under GST. It contains details of all the outward supplies made by the taxpayer during a particular period. This information is crucial for the government to calculate the taxpayer’s tax liability accurately. Form GSTR-1 acts as a source document for preparing other forms such as GSTR-3B and GSTR-2A.
Key features of Form GSTR-1
1. Monthly/Quarterly Return: GSTR-1 is a monthly or quarterly return filed by registered taxpayers under the GST regime. This return summarizes the details of all outward supplies of goods and services made by the taxpayer during the specified period.
2. Outward Supplies: GSTR-1 captures details of all outward supplies made by the taxpayer, including:
- B2B (Business-to-Business) invoices
- B2C (Business-to-Consumer) invoices
- Exports
- Exempt supplies
- Nil-rated supplies
- Non-GST supplies
3. Taxable Value and Tax Liability: The return captures the taxable value of each outward supply, along with the applicable GST rate and the total tax liability.
4. Automatic Matching and Population: The data filed in GSTR-1 by the supplier gets automatically matched with the data filed by the recipient in their GSTR-2 return. This helps in cross-verification and reduces errors in tax filing.
5. Reconciliation and Adjustment: Any discrepancies between the outward supplies reported in GSTR-1 and the inward supplies reported in GSTR-2 can be reconciled and adjusted in subsequent return filings.
6. Different Types of Supplies: GSTR-1 allows you to report various types of supplies, including:
- Taxable supplies
- Exempt supplies
- Non-GST supplies
- Nil-rated supplies
- Zero-rated supplies
- Deemed supplies
7. E-Invoicing Integration: GSTR-1 filing is integrated with the e-invoicing system, which requires taxpayers to generate e-invoices for all B2B transactions. This ensures data accuracy and simplifies the compliance process.
8. Late Fees and Penalties: Failure to file GSTR-1 on time attracts late fees and penalties as per the GST regulations.
9. Role in Input Tax Credit: The data filed in GSTR-1 forms the basis for claiming input tax credit on the purchases made by the taxpayer.
10. Compliance with GST Laws: Filing GSTR-1 is a mandatory requirement for all registered taxpayers under the GST regime. It helps the government track the flow of goods and services and ensures compliance with the GST laws.
Benefits of filing GSTR-1
Filing GSTR-1, the monthly return for outward supplies under the Goods and Services Tax (GST) regime, offers several benefits to registered taxpayers. Here are some of the most significant advantages:
Compliance and Avoiding Penalties:
- Fulfills legal obligation: Filing GSTR-1 is a statutory requirement for GST-registered businesses. It ensures compliance with the GST law and avoids hefty penalties for non-compliance.
- Reduces risk of audits: Regular filing of GSTR-1 demonstrates a track record of consistent and accurate tax reporting, reducing the chances of being selected for audits.
- Prevents late filing fees: Timely filing avoids late fees that accumulate for delayed submissions.
Improved Business Management:
- Accurate record-keeping: Filing GSTR-1 necessitates maintaining detailed records of all outward supplies, promoting better financial management and control over business operations.
- Reconciliation of data: GSTR-1 aids in data reconciliation between suppliers and recipients, ensuring accurate tax reporting and preventing discrepancies.
- Business insights: Analyzing GSTR-1 data provides valuable insights into sales trends, customer behavior, and identifying areas for improvement.
Simplified Tax Payment:
- Streamlined tax calculation: GSTR-1 facilitates the calculation of tax liability for outward supplies, making it easier to pay the correct amount of GST.
- Reduced risk of errors: Accurate data reported in GSTR-1 minimizes the chances of errors in tax calculation and potential disputes with the tax authorities.
- Claiming input tax credit: GSTR-1 plays a crucial role in claiming input tax credit on purchases made by the business.
Additional Benefits:
- Flexibility: GSTR-1 can be filed online from anywhere, offering flexibility and convenience to taxpayers.
- Transparency: Filing GSTR-1 promotes transparency in business transactions, enhancing trust and confidence among stakeholders.
- Improved tax administration: GSTR-1 data helps the government collect and analyze tax information efficiently, leading to better tax administration and policy formulation.
In summary, filing GSTR-1 offers numerous benefits beyond just complying with legal requirements. It helps businesses improve record-keeping, gain valuable insights, simplify tax payments, and claim input tax credits effectively. These advantages contribute to efficient business operations, reduced tax burden, and enhanced trust with the tax authorities.
Filing frequency of GSTR-1
The filing frequency of GSTR-1 depends on your business turnover:
Monthly:
- Businesses with a turnover above INR 1.5 crore are required to file GSTR-1 monthly.
- The due date for monthly filers is the 11th day of the succeeding month.
Quarterly:
- Businesses with a turnover up to INR 1.5 crore are allowed to file GSTR-1 quarterly.
- The due date for quarterly filers is the 13th day of the month succeeding the end of every quarter.
Exceptions:
- If you are opted for the Quarterly Return filing and Monthly Payment of taxes (QRMP) scheme, you will continue filing GSTR-1 on a quarterly basis.
- The government may extend the due date for filing GSTR-1 through notification.
Who should file Form GSTR-1?
Eligibility to File GSTR-1:
Generally, every registered person under GST is eligible to file GSTR-1, the statement of outward supplies, except for the following:
- Input Service Distributors (ISDs): ISDs file a different return called GSTR-6 instead of GSTR-1.
- Composition taxpayers: Composition taxpayers file a simpler return called GSTR-4 instead of GSTR-1.
- Persons liable to deduct tax at source (TDS) under section 51: These persons file a separate return called GSTR-7 instead of GSTR-1.
- Persons liable to collect tax at source (TCS) under section 52: These persons file a separate return called GSTR-8 instead of GSTR-1.
Additionally, the frequency of filing GSTR-1 depends on your annual aggregate turnover:
- For taxpayers with an annual aggregate turnover of Rs. 1.5 crore or less: You are eligible to file GSTR-1 quarterly (by the last day of the quarter).
- For taxpayers with an annual aggregate turnover exceeding Rs. 1.5 crore: You are required to file GSTR-1 monthly (by the 11th of the following month).
Even if you have no outward supplies or sales during a particular month/quarter, you are still required to file a “Nil GSTR-1.” This helps the government keep track of all registered businesses and their activities.
Whether a OIDAR service provider needs to file GSTR-1
Yes and no. Whether a OIDAR service provider needs to file GSTR-1 depends on their location and the recipient of their services:
1. OIDAR service providers located in India:
- These OIDAR service providers must file GSTR-1, just like any other registered taxpayer under GST. They also need to file GSTR-2, GSTR-3, and the annual GST return.
2. OIDAR service providers located outside India:
- They are required to file GSTR-5A, a special return for OIDAR services provided to non-taxable online recipients in India, on or before the 20th of each month.
- However, if they provide OIDAR services to registered individuals or entities in India, the recipient of the services will be liable to pay GST through a reverse charge mechanism (RCM). In such cases, the OIDAR service provider is not required to file GSTR-1, but the recipient will include the transaction details in their GSTR-3B return.
Here’s a table summarizing the eligibility for filing GSTR-1 by OIDAR service providers:
| OIDAR Service Provider Location | Recipient of Service | Required Return |
|---|---|---|
| India | Any | GSTR-1 |
| Outside India | Non-taxable online recipient in India | GSTR-5A |
| Outside India | Registered individual or entity in India | N/A (GSTR-3B by recipient) |
What are the due dates for filing Form GSTR-1?
The due dates for filing Form GSTR-1 depend on the turnover of the taxpayer. Here are the due dates:
- For taxpayers with an aggregate turnover of up to INR 1.5 crores in the previous financial year, the due date is the 13th of the month following the relevant tax period.
- For taxpayers with an aggregate turnover of more than INR 1.5 crores in the previous financial year, the due date is the 11th of the month following the relevant tax period.
It’s important to note that quarterly filers have different due dates. For the quarterly filers, the due date is the 31st of the month following the quarter.
How to file Form GSTR-1?
Filing Form GSTR-1 involves a few simple steps. Here is a step-by-step guide:
- Visit the GST portal and login using your credentials.
- Navigate to the ‘Services’ tab and click on ‘Returns’.
- Select the financial year and the return filing period for which you want to file Form GSTR-1.
- Click on ‘Prepare Online’ to fill in the details manually or choose ‘Upload JSON’ to upload a previously prepared JSON file.
- Fill in all the required information under various sections of Form GSTR-1, such as B2B supplies, B2C supplies, and exports.
- After filling in all the details, click on ‘Preview’ to review the form.
- Once you are satisfied with the form, click on ‘Proceed to File’.
- You will receive an OTP (One-Time Password) on your registered mobile number and email address. Enter the OTP to verify your identity.
- Click on ‘File GSTR-1 with EVC’ if you have an Electronic Verification Code, or ‘File GSTR-1 with DSC’ if you have a Digital Signature Certificate.
- After successfully filing Form GSTR-1, you will receive an acknowledgement number. Make sure to save it for future reference.
Common Mistakes to Avoid
While filing Form GSTR-1, it’s important to avoid common mistakes to ensure accurate reporting. Some of the common mistakes to avoid are:
- Incorrect reporting of details – Double-check all the details filled in various sections of Form GSTR-1 to avoid any errors.
- Missing invoices – Ensure that all invoices are included and reported in the correct sections.
- Incorrect tax calculation – Cross-verify the tax calculations to avoid any discrepancies.
- Missed deadlines – File Form GSTR-1 within the due dates to avoid penalties and late fees.
In Closing
Form GSTR-1 plays a pivotal role in the GST regime, providing essential details of outward supplies made by a taxpayer. Filing it accurately and within the prescribed timelines is crucial to comply with GST regulations and avoid penalties.
By following the step-by-step guide and avoiding common mistakes, you can ensure smooth and hassle-free filing of Form GSTR-1. So, stay compliant and keep your business running smoothly under the GST framework!