Chapter 6: GSTR 1 - Deep Dive

GSTR – 1: DEEP DIVE

In this video, we will deep dive into GSTR-1 and discuss everything you need to know to be GST compliant. 

GSTR – 1 is a monthly or quarterly return to be filed by all registered taxpayers. It contains all details with respect to the outward supplies for that particular taxable period. 

Who has to file GSTR – 1?

All GST registered suppliers are required to file GSTR – 1, irrespective of whether they have carried on any business transactions in that particular period or not. In other words, GSTR – 1 has to be mandatorily filed, either as a nil return or as a regular one.

The filing can be done through:-

  1. The online GST portal – www.gst.gov.in
  2. Through a GST Suvidha Provider

However, there are certain categories of registered persons who are exempted from filing GST, including the following:-

  1. Input Service Distributors (ISD)
  2. Dealers registered under the Composition Scheme
  3. Non – resident taxable person
  4. Taxpayers liable to collect TCS and TDS
  5. Suppliers of online information, database access or retrieval services (OIDAR)
  6. who have to pay taxes themselves


When is GSTR – 1 due?

The turnover of the business plays a part in determining the due date for the submission of the GSTR – 1. For businesses with a turnover of up to Rs. 1.5 crore, there is an option for filing the GSTR -1 on a quarterly basis. However, other taxpayers with turnover above Rs. 1.5 crore will have to file monthly returns.

Taxpayers under the monthly return-filing option have to file their GSTR-1 by the 11th of the succeeding month. For instance, GSTR – 1 for the month of September has to be filed by the 11th of October.

For registered taxpayers who have opted for the quarterly filing of GSTR – 1, the return has to be filed by the last date of the month succeeding the quarter. For instance, GSTR – 1 for the months of July, August, and September have to be filed by the 31st of October. 


What does a GSTR – 1 return contain?

A GSTR-1 return contains the following important details:

  • The GSTIN of the taxpayer
  • The Name of the taxpayer

These are some of the important sections covered under the first part of a GSTR-1 return-

  • The first section is details the outward Supplies made to GST-registered buyers

Here, details of supplies to registered dealers have to be entered invoice-wise, along with the relevant tax charged - CGST and SGST in the case of intra-state supplies, IGST in the case of inter-state supplies. This section is called B2B, where both supplier and buyer are registered under GST.

  • The next section contains details of outward supplies made to unregistered buyers that are greater than Rs. 2.5 lakh 

Here, Invoice-wise details of the supplies made to unregistered buyers exceeding Rs. 2.5 lakh will be entered in this section.

  • The next section is for all credit and debit notes to be entered, that have been issued to registered persons.

(for points 3-5)


  • This is followed by a section to enter all credit and debit notes issued to unregistered persons.
  • Then comes the invoice-wise details to be disclosed with regard to zero-rated supplies and deemed exports


Details with regard to zero-rated supplies and deemed exports will have to be entered in this section.

(points 6-7)


The 2nd part of the GSTR-1 has other details to be disclosed such as-

  • The total summary figures of Outward Supplies made to unregistered buyers

that are less than Rs. 2.5 lakh.

  • Nil rated, exempted and non – GST outward supplies

Details of all nil rated, exempted and non – GST Inter-state and intra-state outward supplies to registered and unregistered persons shall be entered in this table.

  • The tax liability to be disclosed with regard to advances received.
  • Adjustment of advances declared in the previous period.
  • An HSN-wise summary of outward supplies.
  • A list of documents issued during the period such as invoices, credit and debit notes, etc. with the serial numbers of the same.

(points 8-13)

A GSTR-1 return once filed cannot be revised. Any mistake made in the return can be rectified in the next period’s return. 

That is why a GSTR-1 return also has various sections with regard to the amendment of data filed in the previous period’s returns, such as amendment B2B invoices, amended B2C invoices, amended debit/credit notes, amended tax liability, etc.

Under these sections, taxpayers can make changes to any data that was incorrectly filed in the previous periods.

 

Advantages of GSTR-1 return:

GSTR-1 return was introduced by the Government to record details of outward supplies made by a registered person. In this return, details are to be disclosed invoice-wise, which enables the recipient of these invoices to claim the credit based on the details declared by the supplier.

From the point of view of the Government, this ensures that only genuine input tax credit is being claimed, and figures are not being forged since every invoice is linked to a particular GSTIN.

By preparing an accurate GSTR-1 every month, a taxpayer will find it easier to prepare the annual return and does not need to wait till the end of the year to reconcile the returns filed with the books of accounts.


That's all about GSTR-1 for now, don't forget to tune in for the next video where we discuss GSTR-3 in detail.