GSTR-1 – Return Filing, Format, Eligibility & Rules

What is GSTR-1?

GSTR-1 is a monthly or quarterly return that every taxpayer should file except a few provided in further sections. It consists of the details of all the outward supplies. This return has 13 sections listed as follows -

Who is required to file GSTR-1?

GSTR 1 should be filed by every registered person who is involved in a business. Whether there are transactions during a month or not, but the assessee is required to file GSTR 1 monthly or quarterly as per the norms.

Some of the registered entities who are exempt from filing this return are as follows:

• Composition dealers
• Non-resident taxable person
• Input service distributors
• Taxpayer liable to deduct tax deduction at source
• Supplier of Online Information and Database Access or Retrieval Services (OIDAR) who have to pay tax themselves
• Taxpayer liable to collect TCS

Procedure to submit the details by different taxpayers

The details in this return shall be furnished by common portal electronically under section 37. Procedures for different category of taxpayers are:

• For OIDAR GSTR 1 is not required.
• In case of inter-state and intra-state supplies to registered persons the details of B2B transactions, that is, invoice-wise details, should be mentioned.
• For inter-state supplies to unregistered persons whose invoice value is more than 2.5 lakh, the details should be furnished invoice-wise.
• For inter-state supplies to unregistered persons whose invoice value is less than 2.5 lakh, the details should be furnished state-wise with state codes( B2C inter-state transactions).
• In case of intra-state supplies to unregistered persons consolidated details, that is, B2C intra-state transactions, shall be furnished.

Details to be furnished in GSTR-1

Due date of filing GSTR-1

The due dates for GSTR-1 depend on the taxpayer's aggregate turnover:

• Quarterly Filers (QRMP Scheme):
  Businesses with a turnover of up to ₹5 crore can opt to file quarterly returns under the QRMP scheme. These returns are due by the 13th of the month following the relevant quarter.
• Monthly Filers:
  Taxpayers not enrolled in the QRMP scheme or with a turnover above ₹5 crore must file GSTR-1 every month. The due date is on or before the 11th of the following month.

Extension of time limit

Furnishing such details in GSTR 1 can be extended. The Commissioner or Joint secretary in board can extend the time limit by issuing a notification to ensure uniformity all over India.

The commissioner or Joint secretary in the board should notify if any extension is granted by the Commissioner of State Tax or Commissioner of Union Territory tax. Thus, the Commissioner of State GST or UTGST can sufficiently grant an extension.

Rectification or Revision of GSTR 1

GSTR 1, once filed, cannot be rectified or revised. The only option for making any mistakes in this return is to rectify it in the next period of return, whether month or quarter.

For instance, if a mistake is made in GSTR 1, it can be rectified in GSTR-1A filed for the same period (month/quarter) before filing GSTR-3B.

What is the Penalty for late filing of GSTR 1?

Late Fees for GSTR-1 Filings (Non-Nil Returns)

Late Fees for Nil GSTR-1 Filings -

Previously, the late fee was ₹100 per day under the CGST Act and SGST/UTGST Act for non-Nil returns, and ₹25 per day for Nil returns under each Act.

How and where to file GSTR 1?

GSTR-1 must be filed on the GST portal online. To file GSTR-1, you need to go through the following steps -

• Step 1. Log in to the GST Portal: Visit the GST Portal and log in with your credentials.
• Step 2. Access the Returns Section: Click on the “Services” tab.
• Step 3. Open the Returns Dashboard: Select “Returns” and then “Returns Dashboard”.
• Step 4. Choose the Filing Period: Select the relevant Financial Year and Return Filing Period from the drop-down menus.
• Step 5. Search for the Return: Click “Search”.
• Step 6. Prepare Your Return:
  • For up to 500 invoices, click “Prepare Online” under “Details of outward supplies of goods or services”.
  • If you have more than 500 invoices, select “Prepare Offline”.
• Step 7. Complete the Required Sections:
  • The GSTR-1 dashboard has 19 sections.
  • Fill in only the sections applicable to your business.

Important aspects to be noted

• GSTR-1 is mandatory to be filed even if there is no business transaction or nil return
• Filing of GSTR-1 for current month is only possible when GSTR-1 for the previous month has been filed.
• The taxpayer who is opting for voluntary cancellation of GSTIN has to file GSTR-1 for active period
• In cases where a taxpayer has been converted from a normal taxpayer to composition taxpayer, GSTR-1 will be available for filing only for the period during which the taxpayer was registered as normal taxpayer.

Filing GSTR-1 or any other GST return can be tricky, especially for those unfamiliar with the process. To avoid errors and ensure accurate filing, it's best to seek guidance from professionals. Tax2win’s experts are here to assist you with GST filing and answer all your GST-related queries. Book a tax expert today!