What is GSTR-1? Rules, Format, and How to File GSTR 1?

Navigating the process of Goods and Services Tax (GST) in India requires businesses and individuals to grasp the significance of crucial documents like GSTR-1.

Goods and Services Tax Return-1 or GSTR-1 is essential in the entire GST framework, serving as a detailed record of outward supplies made by registered taxpayers during specific tax periods. Let’s explore about GSTR and how you can file it.

What Is GSTR-1?

Goods and Services Tax Return-1 (GSTR-1) is a document under the Goods and Services Tax (GST) regime in India. It serves as a comprehensive record of outward supplies made by registered taxpayers during a specific tax period. Essentially, GSTR-1 captures details of sales transactions, including information on the nature and value of goods or services supplied, as well as the corresponding GST liabilities.

This return is filed by businesses and individuals with GST registration on a monthly or quarterly basis, depending on their turnover. GSTR-1 plays a pivotal role in the GST ecosystem, as it facilitates transparency and compliance by ensuring that accurate information about outward supplies is reported to the tax authorities.

Timely and accurate filing of GSTR-1 is crucial for both businesses and the government, as it enables efficient tax administration, reduces the likelihood of errors, and contributes to the overall effectiveness of the GST system in India.

Pro-tip

Ensure GSTR-1 compliance by maintaining meticulous records of outward supplies. Timely and accurate filing not only avoids penalties but also contributes to a transparent and efficient GST ecosystem, ultimately benefiting your business operations.

When Is GSTR-1 Due Date?

The due date for filing GSTR-1 in India depends on the turnover of the taxpayer. For businesses with an aggregate turnover exceeding Rs. 1.5 crore, the monthly GSTR-1 is typically due by the 11th of the succeeding month. For those with a turnover up to Rs. 1.5 crore, the last date of every month that succeeds the quarter. For example, 30th April for January-February-March.

Who Should File GSTR-1?

In India, under the Goods and Services Tax (GST) regime, GSTR-1 should be filed by every registered taxpayer who is involved in the supply of goods or services. This includes businesses, individuals, and entities that are registered under GST and have obtained a GSTIN (Goods and Services Tax Identification Number). GSTR-1 is a return that captures details of outward supplies made by the taxpayer during a specific tax period.

Whether the taxpayer is engaged in regular taxable supplies, export of goods or services, or nil-rated supplies, they are required to file GSTR-1 to report their sales transactions. The information provided in GSTR-1 is crucial for maintaining transparency and ensuring compliance with GST regulations. The due date for filing GSTR-1 may vary based on the turnover of the taxpayer, and they need to adhere to the prescribed deadlines to avoid penalties and ensure smooth tax administration.

What Is the Penalty for Late Filing of GSTR-1?

The current late fee for GSTR 1 is Rs.50 per day and Rs.20 per day for nil returns after the due date. The original late fee was Rs.200 (Rs.100 as per SGST Act and Rs.100 as per CGST Act). It’s important to note that the penalty amount is charged for each GSTR-1 return that is filed after the due date. Additionally, interest on the outstanding tax liability may also be applicable for late payment.

GSTR-1 Form and Format

GSTR-1 is a declaration where a regular dealer is required to record all outward supplies made throughout the month. In essence, the GSTR-1 format necessitates the inclusion of all outward supplies to registered businesses (B2B) at the invoice level, while supplies to unregistered businesses or end consumers are to be recorded at a rate-wise level. However, in specific exceptional cases, even B2C transactions must be documented at the invoice level.

Comprising 13 tables, GSTR-1 encompasses the details of outward supplies that need to be documented. The applicability of these tables depends on the nature of the business and the types of supplies conducted in the given month. Not all tables are universally relevant; only those pertinent to the business’s nature and transactions during the month need to be completed. The GSTR-1 format on the GST portal is structured accordingly.

How to File GSTR-1?

To submit a GSTR-1 form with nil transactions, follow these steps:

Step 1: Visit the www.gst.gov.in website. The GST homepage will appear. Log in to the GST Portal using valid credentials. Navigate to Services > Returns > Returns Dashboard.

Step 2: Access the File Returns page, where you can choose the Financial Year, Quarter, and Period (Month) for the desired return by selecting from the drop-down list. Click the SEARCH button to proceed.

Step 3: Click the PREPARE ONLINE button in the GSTR1 tile.

Step 4: The page showing GSTR-1, which includes information about outward supplies of goods or services, will be presented. Choose the option ‘File Nil GSTR-1’ by ticking the respective checkbox.

4.1: When you choose the ‘File Nil GSTR-1’ checkbox, an error message will appear, indicating that there are saved records in the form for the specified tax period.

4.2 Take note that tile 7- B2C (Others) contains saved data. To proceed with NIL filing, delete the saved data.

4.2.a. Click the RESET button, indicated by a highlighted symbol, to clear the saved data in Form GSTR-1.

OR

4.2.b. Click the 7- B2C (Others) tile.

4.2.b1 Click the highlighted delete icon to delete the saved data.

4.2.b2 Click the PROCEED button to confirm.

4.3 Select File Nil GSTR-1 checkbox.

Step 5: The Nil File GSTR-1 page will be displayed. Click the FILE STATEMENT button to proceed.

Important Note:

• Quarterly filers must file GSTR-3B and GSTR-1 for the immediate previous quarter before submitting the NIL Form GSTR-1 for the current quarter. For instance, if you are filing the NIL Form GSTR-1 for September(Q), ensure that GSTR-3B for April-Jun 2022 and GSTR-1 for June(Q) 2022 are filed.
• Monthly filers are required to file GSTR-3B and GSTR-1 for the immediate previous month before submitting the NIL Form GSTR-1 for the current month. For example, if you are filing the NIL Form GSTR-1 for September, make sure to file GSTR-3B for August 2022 and GSTR-1 for August 2022.

Step 6: The Returns Filing for GSTR1 page is displayed. Select the Declaration checkbox. In the Authorised Signatory drop-down list, select the authorized signatory. Click the FILE WITH DSC or FILE WITH EVC button to file GSTR-1.

Step 7.

7.1 FILE WITH DSC:

1. Click the PROCEED button.
2. Select the certificate and click the SIGN button.

7.2 FILE WITH EVC:

1. Enter the OTP sent by email and mobile number of the Authorized Signatory registered at the GST Portal and click the VERIFY button.

8. A success message with an ARN number is displayed on the screen.

Step 9. The File Nil GSTR-1 checkbox is disabled, which indicates that the Form GSTR-1 NIL form is filed.

9.1 Click the DOWNLOAD FILED (PDF) button to download the GSTR-1 form in PDF format.

Step 10. Form GSTR-1 Nil file is downloaded in PDF format.

And that’s it; you’ve successfully filled out the GSTR form.

Conclusion

As businesses strive for growth and sustainability, mastering GSTR-1 is not just a compliance task; it’s a strategic investment in efficient tax administration. The journey through GSTR-1 may seem intricate, but armed with knowledge, businesses can turn this obligation into an opportunity for enhanced transparency, reduced errors, and smoother operations in the GST ecosystem.

Pratiiek Mavani

• LinkedIn

Pratiiek Mavani is a seasoned professional in accountancy, taxation, audit, and finance, boasting over 16 years of industry expertise. He specializes in conducting audits for diverse entities including banks, optimizing their core processes through cost management and budgeting. With a focus on income tax and GST, he has represented various clients in cases and appeals concerning direct and indirect taxes across different levels.