GSTR-1(GST regular return)(Monthly) (Without commission)

GSTR-1 (Monthly): A Comprehensive Guide

GSTR-1 is a crucial monthly return under the Goods and Services Tax (GST) regime in India. It’s a detailed statement of all outward supplies (sales) made by a registered business during a specific tax period. Accurate and timely filing of GSTR-1 is essential for ensuring compliance, facilitating Input Tax Credit (ITC) for recipients, and maintaining smooth business operations. This comprehensive guide delves into all aspects of GSTR-1 (monthly), including its components, filing process, due dates, importance, and implications of non-compliance.  

What is GSTR-1 (Monthly)?

GSTR-1 is a statement of outward supplies, which means it details all sales transactions made by a registered taxable person. It’s a crucial document that allows the GST system to track sales and ensure proper tax collection. When we specify “GSTR-1 (Monthly)”, we are referring to the return filed by taxpayers who are required to file on a monthly basis due to their turnover exceeding the prescribed limit (currently ₹5 crore in the preceding financial year). Businesses with turnover up to ₹5 crore can opt for quarterly filing of GSTR-1.  

Key Components of GSTR-1 (Monthly):

GSTR-1 is structured into various sections, each capturing specific information about outward supplies:  

1. GSTIN: The Goods and Services Tax Identification Number of the supplier. This is a unique 15-digit alphanumeric code assigned to every registered business.  

2. Name of the Taxpayer: The legal name of the registered business.

3. Aggregate Turnover in the Preceding Financial Year: This is the total turnover of the business in the previous financial year. This information determines whether the taxpayer is required to file GSTR-1 monthly or has the option for quarterly filing.

4. Details of Outward Supplies to Registered Persons (B2B Invoices) (Sections 4A, 4B, 4C, 6B, 6C): This is one of the most important sections of GSTR-1. It captures details of all sales made to other registered businesses (B2B transactions). This includes:  

   • GSTIN of the recipient: The GSTIN of the business that purchased the goods or services.
   • Invoice number and date: The unique identification number and date of the sales invoice.
   • Value of the invoice: The total value of the invoice, excluding GST.
   • Taxable value: The value on which GST is calculated.
   • Rate of GST: The applicable GST rates (CGST, SGST/UTGST, IGST).
   • Amount of GST: The amount of GST charged on the invoice.

5. Details of Outward Supplies to Unregistered Persons (B2C Invoices) (Section 5A, 5B): This section captures details of sales made to consumers and unregistered persons (B2C transactions). It is further divided into:  

   • Inter-State supplies where invoice value is more than ₹2.5 lakh: For inter-state B2C sales where the invoice value exceeds ₹2.5 lakh, details are required to be reported invoice-wise, similar to B2B invoices.
   • Other B2C supplies (both inter-state and intra-state): For all other B2C sales (where invoice value is less than ₹2.5 lakh for inter-state and all intra-state sales), consolidated state-wise details are required.

6. Zero Rated Supplies (Exports and Supplies to SEZs) (Section 6A): This section details exports and supplies made to Special Economic Zones (SEZs). It includes:  

   • Invoice details: Invoice number, date, and value.
   • Port code: The code of the port from which the goods were exported.
   • Shipping bill details: Details of the shipping bill for exports.

7. Nil Rated, Exempted and Non-GST Outward Supplies (Section 8A, 8B, 8C, 8D): This section reports sales of goods or services that are not subject to GST, such as nil-rated supplies, exempted supplies, and non-GST supplies.  

8. Credit/Debit Notes (Including Refunds) Issued During the Tax Period (Section 9B): This section captures details of credit notes and debit notes issued during the tax period. These are used to adjust previously issued invoices due to reasons like returns, discounts, or price revisions.  

9. Amendments to B2B Invoices (Section 9A): This section allows for corrections to errors in previously filed B2B invoices.

10. Amendments to B2C Invoices (Section 9C): This section allows for corrections to errors in previously filed B2C invoices.

11. Summary of Supplies Effected (Section 12): This section provides a summary of all outward supplies made during the tax period.  

Filing Frequency and Due Date for GSTR-1 (Monthly):

As mentioned earlier, businesses with an aggregate turnover exceeding ₹5 crore in the preceding financial year are required to file GSTR-1 monthly. The due date for filing GSTR-1 is the 11th of the following month. For example, the GSTR-1 for January must be filed by February 11th.  

Importance of GSTR-1 (Monthly):

• Recipient’s ITC Claim: Accurate reporting in GSTR-1 is crucial for recipients to claim Input Tax Credit (ITC). The details reported in GSTR-1 are automatically reflected in the recipient’s GSTR-2A/2B, which they use to claim ITC. Any errors or omissions in GSTR-1 can lead to difficulties for the recipient in claiming ITC.
• Reconciliation: GSTR-1 facilitates reconciliation of sales data between suppliers and recipients, ensuring accuracy and preventing discrepancies. This is essential for maintaining transparency and preventing tax evasion.
• Tax Liability Calculation: GSTR-1 data is used to determine the supplier’s tax liability. Accurate reporting ensures that the correct amount of tax is paid to the government.
• Compliance: Filing GSTR-1 is a mandatory compliance requirement under the GST law. Non-compliance can lead to penalties and other legal consequences.  

Filing Process for GSTR-1 (Monthly):

GSTR-1 can be filed online through the GST portal (www.gst.gov.in). The process generally involves the following steps:  

1. Login to the GST Portal: Log in to the GST portal using your username and password.
2. Navigate to Returns Dashboard: Go to the “Returns Dashboard” section.
3. Select the Relevant Tax Period: Select the month for which you are filing GSTR-1.
4. Prepare GSTR-1: You can prepare GSTR-1 online or by uploading a JSON file.  
5. Validate the Data: Ensure that all the data entered is accurate and complete.
6. Submit GSTR-1: Once you are satisfied with the data, submit GSTR-1.
7. File GSTR-1: After submission, you need to file GSTR-1 using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).  

Consequences of Non-Compliance:

Failure to file GSTR-1 on time can result in various consequences:

• Late Fees: Late fees are levied for each day of delay in filing.  
• Interest: Interest is charged on the outstanding tax amount.  
• Difficulty in Claiming ITC for Recipients: If GSTR-1 is not filed, the recipient may face difficulty in claiming ITC.
• Blocking of E-Way Bill Generation: In some cases, non-filing of GSTR-1 can lead to blocking of e-way bill generation, which can hinder the movement of goods.  

Key Points to Remember:

• Accurate Data: Ensure that all the data entered in GSTR-1 is accurate and consistent with your books of accounts.
• Timely Filing: File GSTR-1 before the due date to avoid late fees and other penalties.  
• Reconciliation: Regularly reconcile your sales data with the information available on the GST portal.
• Utilize GST Software: Using GST software can help streamline the process of preparing and filing GSTR-1.  

Conclusion:

GSTR-1 (Monthly) is a critical component of GST compliance for businesses with higher turnover. Accurate and timely filing is essential for ensuring smooth business operations, facilitating ITC for recipients, and avoiding penalties. By understanding the various components of GSTR-1 and adhering to the filing process and deadlines, businesses can effectively manage their GST compliance and contribute to a transparent and efficient tax system. If facing complexities, it is always advisable to consult with a tax professional.