What Is GSTR-1?

Understanding GSTR-1 for GST Filing

GSTR-1 is a monthly or quarterly return that registered taxpayers under the Goods and Services Tax (GST) must file to report their outward supplies (sales of goods and services). 

Key Features of GSTR-1:

1. Details Captured:

Invoice-wise details: Sales invoices issued to registered taxpayers (B2B sales).

Invoice-wise details: Sales invoices issued to unregistered taxpayers (B2C sales).

Details of credit/debit notes issued during the period.

Export sales:

Advance receipts: For which invoices are yet to be issued.

2. Filing Frequency:

Monthly: For taxpayers with an annual turnover exceeding ?1.5 crore.

Quarterly: For taxpayers with an annual turnover up to ?1.5 crore.

3. Due Dates:

Monthly Filing: 11th of the following month.

Quarterly Filing: Last day of the month following the quarter.

4. Importance:

Input Tax Credit (ITC) for Recipients: The details filed in GSTR-1 are auto-populated in the recipients' GSTR-2A, enabling them to claim ITC.

Compliance: Regular and timely filing helps maintain compliance and avoid penalties.

Reconciliation: Assists in the reconciliation of sales data with the books of accounts.

Steps to File GSTR-1:

1. Login to the GST Portal:

Go to the GST portal (https://www.gst.gov.in/).

Use your GSTIN and password to log in.

2. Navigate to Return Dashboard:

Select 'Services' -> 'Returns' -> 'Returns Dashboard'.

Choose the financial year and return filing period.

3. Fill in Details:

Provide details of outward supplies in relevant sections.

Verify the summary of added invoices and other required information.

4. Save and Submit:

Save the entered details periodically to avoid data loss.

After verifying all entries, submit the return.

5. Generate Summary:

Generate the GSTR-1 summary to review the details before final submission.

6. File Return:

File the return using a DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).

7. Acknowledgment:

Upon successful filing, an acknowledgment reference number (ARN) is generated.

Key Sections in GSTR-1:

Section 4: Taxable outward supplies made to registered persons (B2B).

Section 5: Taxable outward supplies made to unregistered persons (B2C).

Section 6: Zero-rated supplies (Exports).

Section 7: Taxable supplies to unregistered persons where the total invoice value is up to ?2.5 lakh.

Section 8: Nil-rated, exempted, and non-GST outward supplies.

Section 9: Amendments to previous periods' details.

Section 10: Advances received/adjusted in the current tax period.

Benefits of Filing GSTR-1:

Facilitates ITC claims for buyers.

Ensures accurate tax reporting and compliance.

Helps avoid penalties and interest for late filing.

Supports business transparency and accountability.