GST Returns Filing under the GST Act
- Businesses whose annual turnover does not exceed the threshold limit of Rs 40 lakhs (Rs.10 lakhs for special category states).
- Businesses engaged in the supply of exempted goods and services, such as education, healthcare, and religious services.
- Businesses that fall under the reverse charge mechanism, where the recipient of the goods or services is liable to pay GST instead of the supplier.
What is GSTR-1?
- Reporting outward supplies: GSTR-1 contains details of all the outward supplies made by a registered taxpayer in a particular tax period. This information helps the tax authorities to track and verify the sales made by the taxpayer and ensure that the correct amount of GST is being paid.
- Claiming input tax credit: The information provided in GSTR-1 is used by the recipient of goods or services to claim the input tax credit. The recipient can claim input tax credit only if the details of the supplies made by the supplier are properly reported in GSTR-1.
- Compliance with GST regulations: GSTR-1 is a mandatory return that must be filed by all registered taxpayers. Non-filing of GSTR-1 can result in penalties and legal issues. Therefore, filing GSTR-1 helps businesses to comply with GST regulations and avoid any issues.
- Verification of sales data: GSTR-1 data is used by the tax authorities to verify the sales data reported by a registered taxpayer. If there is any discrepancy between the sales data reported in GSTR-1 and the actual sales made by the taxpayer, the tax authorities may conduct an audit and take necessary actions.
- Matching of sales data: The sales data reported in GSTR-1 is matched with the sales data reported by the recipient in their GSTR-2A/2B returns. This helps in identifying any discrepancies or errors in the reporting of sales data and ensures that the correct amount of GST is being paid.
GSTR-1 Eligibility & Exemptions
Monthly Returns in GSTR-1 Eligibility
Quarterly Returns in GSTR-1 Eligibility
- Composition Scheme taxpayers: Businesses registered under the Composition Scheme are not required to file GSTR-1. They need to file GSTR-4 on a quarterly basis instead.
- Non-resident taxable persons: Non-resident taxable persons who do not have a permanent establishment in India are not required to file GSTR-1. They need to file GSTR-5 instead.
- Input service distributors: Input service distributors are not required to file GSTR-1 as they do not make any outward supplies. They are required to file GSTR-6 instead.
- Suppliers of online information and database access or retrieval services (OIDAR): Suppliers of OIDAR services who are located outside India and are registered under GST in India are not required to file GSTR-1. They need to file GSTR-5A instead.
- Taxpayers liable to deduct tax at source (TDS): Taxpayers who are required to deduct tax at source under GST are not required to file GSTR-1. They need to file GSTR-7 instead.
Details & Documents required for GSTR-1 Filing
|Documents for GSTR-1
These are commercial documents issued by the supplier to the recipient for the supply of goods or services. They contain details such as the name and address of the supplier and recipient, the description and quantity of the goods or services supplied, and the tax charged. Invoices are required to report details of all outward supplies made during the tax period.
These are issued when there is an increase in the value of the supply or tax charged. Debit notes are required to report such changes made to invoices already issued.
These are issued when there is a decrease in the value of the supply or tax charged. Credit notes are required to report such changes made to invoices already issued.
These are issued for the supply of goods or services to recipients located outside India. Export invoices are required to report details of all exports made during the tax period.
These are documents issued by the exporter to customs authorities at the port of export. They contain details of the goods to be exported. Shipping bills are required to report details of all exports made during the tax period.
Bill of entry
These are documents filed by the importer with customs authorities at the port of entry. They contain details of the goods to be imported. A Bill of entry is required to report details of all imports made during the tax period.
Due Date for GSTR-1 Filing
Penalty For Late Filing of GSTR-1
- Late fee: Registered taxpayers who fail to file GSTR-1 within the due date will be liable to pay a late fee of Rs. 50 per day (Rs. 20 for taxpayers with nil liability) for each day of delay, subject to a maximum of Rs. 5,000 per return.
- Penalty: Non-filing of GSTR-1 can attract a penalty of Rs. 10,000 or 10% of the tax due, whichever is higher. This penalty may be imposed by the tax authorities after due notice and opportunity of being heard.
- Interest: If the tax liability for the tax period is not paid within the due date, interest at the rate of 18% per annum will be levied on the outstanding amount from the due date till the date of payment.
- Input tax credit (ITC) blockage: Non-filing of GSTR-1 or delay in filing can lead to blockage of ITC. Registered taxpayers are required to file GSTR-1 to claim ITC on the goods and services received from their suppliers. If GSTR-1 is not filed within the due date, the recipients may not be able to claim ITC on their purchases, leading to blockage of ITC.
- Legal consequences: Non-filing of GSTR-1 or delay in filing can also have legal consequences. The tax authorities may initiate proceedings against the defaulting taxpayers, which can include issuing show-cause notices, conducting audits, and even prosecuting in some cases.