How is GSTR 1 Form filed?

Are you facing difficulty in filing GSTR-1? Don’t worry! This is your one-stop guide to finally understanding GSTR for what it is, and how is it to be filed.

We recently marked the first anniversary of the implementation of Goods and Sales Tax (GST), yet despite its tremendous success, there have been many setbacks. The historical amalgamation of 17 taxes and cesses implemented by the Central Government and State Government has caused a lot of confusion, and many are unable to file their GST Returns properly.

GST is applicable on ‘supply’ of goods or services, as against the previous model on the manufacture of goods or on sale of goods or services, and is a dual tax levied with the Centre and the States simultaneously levying tax on a common base.

Before understanding GSTR-1, you must apprehend what are GST Returns.

GST Return is a document which has to be filed compulsorily by all registered businesses, with the tax administrative authorities, in order to calculate their tax liability. It is filed monthly/quarterly and/or annually, based on the type of their business, and contains information pertaining to purchases, sales, input and output tax credit.

-What are the types of GST Returns?

Ordinarily, any regular business is required to file three types of returns monthly/quarterly stating details of their supplies for that period. As per the CGST Act, there are mainly 3 Forms which have to be tendered, being GSTR-1, GSTR-2 and GSTR-3.

Therefore, GSTR-1 is a monthly return which reports the accumulated information of outward supplies of sale of goods/services effected, on whose basis the taxpayer’s GST Liability is generated. It has a total of 13 sections.

If the recipient feels that any information in any invoice entered on the GSTR-1 is pending, or missing, then he can update it by way of GSTR-1A. This form is auto-drafted and helps the taxpayer in revising and reconciling relevant information.

Thus the invoices uploaded by us in GSTR-1 will be auto-populated in the GSTR-2 of the receiver of the goods, and made available for viewing to him. It will help the receiver reconcile his purchases, and communicate any mistakes in GSTR-1.       

-Who is required to file GSTR-1?

Every registered taxable person, other than an input service distributor/ composition taxpayer/persons liable to deduct tax u/s 51 / persons liable to collect tax u/s 52 is required to file GSTR declaring all outward supplies of the taxable period. GSTR-1 has to be filed even if no transaction was incurred during that period.

-How is GSTR-1 Form filed?

One can file GSTR-1 either through Online Mode or Offline Mode.

Returns can be filed by way of Online Mode, through the GST Portal, only when a taxpayer has less than 500 Business-to-Business invoices for that taxable period. If a business has more than 500 invoice receipts for that taxable period, then it is to be submitted through the Offline Mode.

One can file through Offline Mode, through various offline utilities, excel based utility and 3^rd Party Software and through Goods and Service Provider. If a business has less than 500 B2B invoices, then also it can opt for offline mode.

-What categories of outward supplies are recognized by the GSTR-1?

B2B supplies are between business to business, i.e., which have GSTIN, whereas B2C supplies are between business to consumer, i.e., wherein supplies made to those recipients who don’t have GSTIN. B2C (Large) is a special category of supplies, available only in intra-state supply, for those supplies whose invoice value is more than Rs.2.5 Lakh.

B2B, B2C Large and Export Invoices are to be filed in invoice form, because the government wants to keep a check on them. On the other hand, B2C invoices are filed in a consolidated form.

-When is GSTR-1 due?

The due dates for GSTR-1 are based on your annual turnover. Until March 2018 the due dates for the return has been notified. Businesses with sales of up to Rs. 1.5 crore will file quarterly returns. Other taxpayers with sales above Rs. 1.5 crore have to file monthly return.

-What details have to be furnished in GSTR-1?

1. Invoice level details of B2B supplies including those having UIN;
2. Invoice level details of B2C Supplies
3. Details of Credit/Debit Notes issued by the supplier against invoices;
4. Details of export of goods and services
5. Summarized state level details of supplies to consumers
6. Summary Details of Advances received in relation to future supply and their adjustment
7. Details of any amendments
8. Nil- rated, exempted, and non-GST supplies; and
9. HSN/SAC wise summary of outward supplies.

Therefore, one must fill in the GSTR-1 Form very carefully, as it lays down the foundation for GSTR-2. Moreover it is on the basis of which a taxpayer’s liability is generated and his input tax credit is formulated.