The Goods and Services Tax (GST) system in India introduced a variety of return forms for taxpayers to comply with tax regulations. One of the most significant forms is GSTR 1, crucial in reporting outward supplies. Here’s a detailed guide to understanding and filing GSTR 1.
What is GSTR 1?
GSTR 1 is a GST return form used to declare outward supplies or sales. It must be filed either monthly or quarterly, depending on the taxpayer’s aggregate turnover. This form helps the government track sales transactions and ensure compliance with GST regulations.
Who Should File GSTR 1?
All registered taxpayers are required to file GSTR 1, even if there have been no transactions during the period. However, certain categories of taxpayers are exempt from filing this form, including:
Log in to the GST Portal: Visit the GST portal and log in to your account.
Navigate to Returns Dashboard: Click on “Services,” then “Returns,” and select “Returns Dashboard.”
Select Financial Year and Return Period: Choose the relevant financial year and return period.
Prepare Return: Click “Search” and select “Prepare Online” or “Prepare Offline” if you have more than 500 invoices.
Fill Sections: Complete the necessary sections (details provided below).
Generate Summary: Click “Generate GSTR 1 Summary,” tick the acknowledgement box, and click “Submit.”
File Return: Click “File Return” to complete the process.
Detailed Sections for GSTR 1
4(A,B,C), 6(B,C) – B2B Invoices
This section includes sales made to another business. Steps to fill this section are mentioned below – Click on this section and select “Add Invoice”.
Tick the relevant checkboxes – Deemed Exports, SEZ Supplies with Payment or SEZ Supplies without Payment.Enter the receiver’s GSTIN, invoice number, invoice date, POS, and total invoice value.Check the “Supply attract reverse charge” box if applicable. Enter the Taxable Value on the relevant tax rate box. Integrated Tax and cess or CGST and IGST will be automatically populated based on the POS (place of supply). Click “Save” after entering all necessary data.Click “Back” for return to the GSTR 1 dashboard.
5A, 5B – B2C (Large) Invoices
This section is for sales amounting to Rs.2.5 lakh or above made to consumers. Steps to fill this section are mentioned below – Step 1 – Click on this section and select “Add Invoice”. Step 2 – Enter the POS, invoice number, invoice date, and total invoice value. Step 3 – Enter the Taxable Value on the relevant tax rate box. Step 4 – Click “Save”. Step 5 – Click “Back” for returning to the GSTR 1 dashboard.
9B – Credit/Debit Notes (Registered)
This section includes the credit/debit notes provided to registered taxpayers or businesses. Steps to fill this section are mentioned below– Click on this section and select “Add Details”.Enter the Receiver GSTIN/UIN, debit/credit note number, debit/credit note date, original invoice number, original invoice date, note type, note value, supply type, and reason for issuing the note. Enter the Taxable Value on the relevant tax rate box.Click “Save”Click “Back” to return to the GSTR 1 filing dashboard.
9B – Credit / Debit Notes (Unregistered)
This section is similar to the above one but applies to unregistered individuals or consumers. Steps to fill this section are also similar to the above.
6A – Exports Invoices
This section is for businesses engaged in exporting goods. Steps to fill this section are mentioned below– Click on this section and select “Add Invoice”.Enter invoice number, ate, port code, bill of export number or shipping bill number, bill of export date or shipping bill number, GST payment, and total invoice value. Enter the Taxable Value on the relevant tax rate box.Click “Save”.Click “Back” for return to the GSTR 1 dashboard.
The following sections should be filled to make amendments to the ones mentioned above – 9A – Amended B2B Invoices.9A – Amended B2C (Large) Invoices.9A – Amended Exports Invoices.9C – Amended Credit / Debit Notes (Registered).9C – Amended Credit / Debit Notes (Unregistered).
7 – B2C (others)
This section includes the outward supplies or sales amounting to less than Rs. 2.5 lakh made to consumers. Steps to fill– Step 1 – Click on this section and select “Add Details”. Step 2 – Enter POS and taxable value. Step 3 – Select the GST rate. Step 4 – Click “Save”. Step 5 – Click “Back” for returning to the dashboard.
8A, 8B, 8C, 8D – Nil-rated Supplies
This section includes sales of products that do not attract any GST or are nil rated. Steps to fill this section are mentioned below – Click on this section and select “Edit”.Enter the amount for Nil Rated Supplies, Exempted, and Non-GST Supplies for the following –Inter-state supply to a registered personInter-state supply to an unregistered personIntra-stare supply to a registered personIntra-stare supply to an unregistered personClick “Save”.Click “Back” for returning to the dashboard.
11A(1) and (2) – Tax Liability
This section includes the details of advances received for outward supplies but for which invoices were not generated. Steps to follow – Click on this section and select “Add Details”.Select the POS.Enter the Gross Advance Adjusted amount on the relevant GST rate box.Click “Save”.Click “Back” for returning to the dashboard.
11B(1), 11B(2) – Adjustment of Advances
This section includes invoices that have been raised in the current period, the advance for which were received and tax paid in the previous month. Steps to follow for this section are the same as the one mentioned above.
12 – HSN-wise-Summary of Outward Supplies
This section includes the HSN codes of all the outward supplies made along with the GST rate and quantity. Steps to follow to fill in details – Step 1 – Click on this section and select “Add Details”. Step 2 – Enter HSN, description, UQC, total quantity, total value, and total taxable value. Step 3 – Click “Add”. Step 4 – Click “Save”. Step 5 – Click “Back” for returning to the dashboard.
13 – Documents Issued
This section includes the number of invoices generated during the return filing period. Steps to fill this section – Click on this section.Click on “Add Document” in each respective section (12 in total) to enter the serial number of invoices. Click “Save”.Click “Back” for returning to the dashboard.
The following sections are for making amendments to the above – 11A – Amended Tax Liability (Advances Received) 11B – Amendment of Adjustment of Advances 10 – Amended B2C (Others) After all the sections are filled, follow these steps – Click “Generate GSTR 1 Summary”.Tick the acknowledgement box.Click “Submit”.Click “File Return”.
Following all of the steps correctly will conclude the filing of GSTR 1. Now that taxpayers know what GSTR 1 means, they can easily file it based on their annual turnover without hassle.
Conclusion
Filing GSTR 1 is crucial for GST compliance and helps maintain transparency in sales transactions. By understanding the process and adhering to deadlines, taxpayers can avoid penalties and ensure smooth business operations.
Frequently Asked Questions
What is the purpose of GSTR 1?
GSTR 1 is used to report outward supplies or sales. It helps the government monitor and track transactions to ensure GST compliance.
Who is exempt from filing GSTR 1?
Exemptions apply to taxpayers collecting TDS/TCS, OIDAR service providers, non-resident taxable persons, those under the GST composition scheme, and ISDs.
What are the penalties for late filing of GSTR 1?
The late fee is Rs. 50 per day for regular returns and Rs. 20 per day for nil returns, with a cap on the total fee.
How often should GSTR 1 be filed?
GSTR 1 must be filed monthly or quarterly, depending on the taxpayer’s turnover and choice of filing frequency.
How can I file GSTR 1?
Log in to the GST portal, navigate to the Returns Dashboard, prepare the return, fill in the necessary sections, generate a summary, and submit the return.