GSTR-1 – Return Filing, Format, Eligibility & Rules

GSTR-1 is a monthly return that summarises all sales (outward supplies) of a taxpayer.

1. Basics of GSTR-1

a. What is GSTR-1?

GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It contains details of all outward supplies i.e sales.

The return has a total of 13 sections, listed down as follows:

• Tables 1, 2 & 3: GSTIN, legal and trade names, and aggregate turnover in the previous year
• Table 4: Taxable outward supplies to registered persons (including UIN-holders) excluding zero-rated supplies and deemed exports
• Table 5: Taxable outward inter-state supplies to unregistered persons where the invoice value is more than Rs.2.5 lakh
• Table 6: Zero-rated supplies as well as deemed exports
• Table 7: Taxable supplies to unregistered persons other than the supplies covered in table 5 (net of debit notes and credit notes)
• Table 8: Outward supplies that are nil rated, exempted and non-GST in nature
• Table 9: Amendments to outward supplies that are taxable and reported in table 4,5 & 6 of the earlier tax periods’ GSTR-1 return (including debit notes, credit notes, refund vouchers issued during the current period)
• Table 10: Debit note and credit note issued to unregistered person
• Table 11: Details of advances received or adjusted in the current tax period or amendments of the information reported in the earlier tax period.
• Table 12: Outward supplies summary based on HSN codes
• Table 13: Documents issued during the period.

b. When is GSTR-1 due?

The due dates for GSTR-1 are based on your turnover.

Businesses with sales of up to Rs.1.5 crore have an option to file quarterly returns.

Other taxpayers with sales above Rs.1.5 crore must file the return every month.

*Prior to October 2020, quarterly GSTR-1 was due by the last date of the month following the relevant quarter up to September 2020.

c. Who should file GSTR-1?

Every registered person is required to file GSTR-1 irrespective of whether there are any transactions during the month or not. For nil GSTR-1 filers, there is a facility to file through an SMS that started from the 1st week of July 2020.

The following registered persons are exempt from filing the GSTR-1:

• Input Service Distributors
• Composition Dealers
• Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)
• Non-resident taxable person
• Taxpayer liable to collect TCS
• Taxpayer liable to deduct TDS
  

d. How to revise GSTR-1?

A return once filed cannot be revised. Any mistake made in the return can be rectified in the GSTR-1 filed for the next period (month/quarter). It means that if a mistake is made in GSTR-1 of December 2020, rectification for the same can be made in the GSTR-1 of January 2021.

e. Late Fees and Penalty

As per the GST law, a late fee for not filing GSTR-1 is Rs. 200 per day of delay (Rs. 100 as per the CGST Act and Rs. 100 as per SGST Act). The late fee will be charged from the date after the due date.

However, as per the latest notifications, the late fees have been reduced to Rs. 50 per day and Rs 20 per day (for nil return).

2. How to file GSTR-1 on ClearTax GST Software?

FIling on ClearTax GST Software is simple and quick. Here is a detailed guide to file GSTR-1 on ClearTax GST Software.

ClearTax GST Advantage:

• End-to-end filing on a single portal with EVC or DSC
• Import Tally data with a single click
• Import invoice data in any format through a custom mapper exclusively on ClearTax
• Ensure early error correction and 100% accurate returns filing
• Track the filing status of your business on a single dashboard

3. FAQs on GSTR-1

1. Should I file GSTR-1 even if there are no sales in a month?

Yes, filing GSTR 1 is mandatory. If your total sales for a year is less than Rs 1.5 crore you have the option to file the return on a quarterly basis. With this, there is also an Invoice furnishing facility available to upload sales invoices on a monthly basis (for the first two months of the quarter).

2. Can I upload invoice only while filing the return?

You can upload invoices anytime. It is highly advised that you upload invoices at regular intervals during the month to avoid bulk upload at the time of filing return. This is because bulk upload takes a lot of time.

3. Can I change a bill uploaded on GST Network?

After uploading bills you can make changes multiple times. There is no restriction on changing invoices after uploading them. But you can change an invoice only before submitting a return. Once submitted, the numbers are frozen.

4. Can I file GSTR-1 even after filing GSTR-3B?

GSTR-3B is a simple summarised return to be filed by taxpayers on a monthly basis (quarterly basis if QRMP scheme is chosen). With effect from 1st January 2021, GSTR-1 has to be filed before filing the GSTR-3B return. Prior to this date, a quarterly GSTR-1 filer would have filed his quarterly GSTR-1 end of the month succeeding the quarter, which would have been after filing GSTR-3B.

5. I have opted for the composition scheme. Should I file GSTR-1?

GSTR-1 should not be filed by you. Form CMP-08 must be used to make tax payments on a quarterly basis by such taxpayers opting for composition scheme.

6. Should I make GST payment after filing GSTR-1?

GSTR-1 is a return where details of sales are filed with the government. No tax has to be paid after filing this return. The tax has to be paid at the time of filing GSTR-3B.

7. I have been filing GSTR-1 on a quarterly basis so far. My annual sales are below Rs. 1.5 lakh. What happens if I choose the QRMP scheme now in December 2020?

You need to continue filing GSTR-1 on a quarterly basis and the GSTR-3B will also need to be filed on a quarterly basis with monthly tax payments. For more information about the QRMP scheme, read our article on “All about the QRMP scheme”.

8. Can amendments be made to details already filed in GSTR-1? If yes, then what will be the filing period to make amendments?

Yes, you can make amendments to an already filed GSTR-1 of a particular tax period by declaring the amended details in the return

For example, Mr X of Kerala has sold goods to Mr Y of Karnataka for Rs. 1,00,000 on 30th August 2020 and declared in the GSTR-1 of August 2020.

Now he realised that he made a mistake in the date of the invoice, so he can make an amended invoice with correct invoice date i.e., 16th August 2020.

This amended invoice can be shown in the GSTR-1 of September 2020.

9. What should the ‘Revised date’ be in the amended invoice?

The ‘Revised date’ to be mentioned in an amended invoice must be not later than the last date of the original invoice tax period.

For example, if an original invoice dated 12/07/2020 is being amended in August then the revised invoice date cannot be later than 31/07/2020

10. What are the amendments not admissible or not allowed?

The following details cannot be amended at Invoice level :

1. The Customer GSTIN

2. Changing a tax invoice to a bill of supply

3. The following with respect to Export Invoices cannot be amended:

a) Shipping Bill Date/Bill of Export Date

b) Type of Export- With/Without payment

4. The following with respect to Credit Debit Notes cannot be amended:

a) Receiver/Customer GSTIN.

Note: However you may amend & link any other invoice for the same

                    GSTIN.

b) Place of Supply

c) Reverse charge applicable

Reason: Since the above details are based on the original Invoice which it

Is linked to, Hence these details must match with the details of the linked

Invoice.

5. If the receiver of goods has taken action on the invoices i.e. accepted or

modified and the supplier accepts such modifications in GSTR-1A, he will not be allowed to amend those invoices. The reason is that those invoices will automatically get reflected in the GSTR-1 of the supplier in the month of such acceptance under the relevant amendments table.

The following details cannot be amended at a summary level

1. Nil Rated
2. HSN summary of Outward supplies
3. Cannot add a new place of supply

Note: However, you can replace the existing place of supply with another place of supply with some limitations. Refer the examples given below.

11. What are the amendments allowable with respect to the Place of supply?

With respect to Place of Supply, note the following:

1. You can amend the original place of supply for a transaction.
2. You cannot add any new place of supply to a transaction.

Let us understand the above with the following scenarios:

We can see that in all those cases where the original place of supply was amended from Kerala to Karnataka (whether or not there was a change in tax rates or invoicing), the amendment is allowed.

But in the last case where in addition to Kerala, Karnataka is also added as a place of supply ( irrespective of change in tax rates or invoicing ) amendment does not hold good.

12. Where to show the amended invoices in GSTR-1?

Declare the amended invoices or details in the tax period in which the amendment takes place as follows:

For Further Reading and Understanding:

• Guide to file GSTR-1 using ClearTax GST Software
• How to file GSTR-1 on Government Portal
• Guide to file GSTR-1 on Tally
• Details to be mentioned in GSTR-1