The Goods and Services Tax (GST) was introduced in India to reduce the taxation problems faced by the general citizens and the business owners. Notably, GST diminished the cascading tax effect by abolishing the ‘tax on tax’ practice. This has, in turn, enhanced the revenue structure and amount as more people are paying their taxes properly. Undoubtedly, it has significantly boosted the economic growth of the country.
When it comes to GST return filing, there are various forms, such as GSTR 1, GSTR 9 and GSTR 2. You need to fill them according to your business transactions and income. In this article, we will take a closer look at the process of filing the GSTR 1 form.
What is the importance of the GSTR 1 form?
GSTR 1 is a form that taxpayers can file monthly or quarterly. This form asks for the details of the outward supplies and the sales details of the year. All registered taxpayers have to fill in the details in the form. For a particular tax period, the form must contain all the details of the sale of products and services offered by a taxpayer.
People with an annual turnover of nearly Rs 1.5 crore have to submit the GSTR 1 form. They have to submit the form on a quarterly basis. Further, taxpayers who have an annual turnover of more than Rs 1.5 crore have to submit the GSTR 1 form on a monthly basis.
In case the forms are not filed within the dates specified by the government, taxpayers have to pay a penalty. The fine for filing GSTR 1 is Rs 100 under CGST and Rs 100 for SGST. Therefore, a total amount of Rs 200 will be charged starting from the date after the actual date of submission. For filing a Nil GSTR return, the late fees include Rs 50 for SGST and Rs 50 for CGST. A total of Rs 100 will be slapped as fine from the original date of submission.
All taxpayers that are registered have to submit the GSTR 1 form. However, the following registered taxpayers do not have to fill the form:
• Non-resident taxpayers
• Input service distributors
• Composition vendors
• Taxpayers who collect TDS
• Taxpayers who collect TCS
• Suppliers of OIDAR (Online Information and Database Access or Retrieval) services
Points to remember before filing GSTR 1 form
These things have to be kept in mind before submitting the GSTR 1 form:
• You have to be a registered taxpayer under GST and must have a unique identification number called GSTIN for logging in the official portal
• The invoices of your business transactions have to be very detailed and updated. These will include the details about the interstate and intrastate business operations along with B2B and B2C transactions. Details of stock transfers, non-GST supplies and GST exempted goods have to be specified
• For receiving an OTP, you need a registered phone number. This code is used to verify your return. You can also use an e-sign that is based on your Aadhaar card
Some of the following details are asked in the GSTR 1 form:
• GSTIN of your business
• Aggregate value of your annual turnover
• Deemed export sales and zero rated
• Information about the advances received from customers
• Supplies that are exempted from GST and nil rated
How to file GSTR 1 online?
When it comes to how to file GSTR 1 online, follow the below-mentioned steps:
• Visit the gst.gov.in portal and go to the Returns dashboard. After going to the Returns filing page, select the financial year for which you want to submit the form
• You can choose to file the return offline or online. Next, you have to fill in the details of outward supplies. The aggregate turnover details have to be filled also
• Then you have to fill in the invoice details. You have to feed the B2B invoice details of 4A, 4B, 4C, 6B and 6C. Then the information related to the B2C invoices of 5A and 5B has to be filled.
• Also, the Credit and Debit Notes for 9B, both registered and unregistered, have to be included
• Fill in the details of the 6A Export invoices
• Then click on the 7 B2C others. To add e-commerce transaction information, select the E-Commerce tab. For any other data apart from the e-commerce category, click on the Add Details button and enter the information
• After that, click on 8A, 8B, 8C, 8D – Nil Rated Supplies tab. Click on Edit and fill in the details. Hit save to secure the data
• Next, you need to click on the 1A(1), 11A(2) – Tax Liability (Advances Received) tab. Click on the Add Details button
• You have to enter the State Code and where the product was delivered. Provide the Gross Advance Received
• Click save and head over to the 11B(1), 11B(2) – Adjustment of Advances section
• Click on Add Details. From the drop-down menu, select the state where the outward supply was made
• Provide the Gross Advance Adjusted information in the specified field
• Then go to the HSN-wise summary of outward supplies tab. Click Add details and add the information regarding the HSN code for outward supplies, their description, supply quantity, total quantity, total value and total taxable value of these supplies
• Then enter the type of sale whether IGST, SGST or CGST. Also, select whether it was made interstate or interstate.
• Click Add and Save the details
• Then visit the last section – Documents Issued. And, click on Add Document
• Within the 12 categories of documents, enter the information about the serial number of the issued invoices, total issued invoices and the discarded invoices
• After you have successfully uploaded all the required documents, click on Save
The GSTR 1 form is crucial for notifying your business details and the associated transactions. So, take your time while filing the GSTR 1 return. Make sure all the data provided in the form is true to the best of your knowledge. Remember that once you file GSTR 1 form, the data cannot be changed. If you need to make any changes to the details you have provided, you have to do it in the next month’s return filing. Therefore, if you face problems while filing the GSTR 1 form, visit your nearest GST facilitation centre.