GSTR-1: Statement of Outward Supplies
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GSTR-1 is a comprehensive form which is to be submitted by all the registered persons under GST, exception exists, detailing out the information about the outward supplies of goods and services. This return serves as the base for all subsequent filings, including GSTR-2, GSTR-3B, and so on, because it contains information that recipients use to verify their purchase invoices in their GSTR-2A.
The guide attempts to explain GSTR-1 in a great detail, clearing up any doubts or questions that the reader may have.
GSTR-1
Form GSTR-1 is a monthly or quarterly statement of outward supplies that must be submitted by all normal and casual registered taxpayers who make outward supplies of goods and services or both. It consists of all the details related to the outward supply, such as invoice details, taxable value, amount of supplies made to registered and unregistered entities.
Who is Required to File Form GSTR-1?
With some exceptions, all registered taxpayers under the GST regime in India are required to file Form GSTR-1. Below is the detail breakdown of who is required or not required to file GSTR-1:
Regular Taxpayers: Businesses and individuals registered under GST who make outward supplies of goods or services or both are required to file GSTR-1. This includes traders, manufacturers, service providers, and others who sell goods or provide services.
Composition Scheme Taxpayers: Taxpayers registered under GST Composition Scheme are not required to file GSTR-1. Instead, they file a quarterly GSTR-4 Form.
Non-Resident Taxable Persons: Non-Resident Taxable Persons (NRTP) must file GSTR-5, not GSTR-1.
Input Service Distributors (ISD): ISDs are required to file GSTR-6, not GSTR-1.
Taxpayers under TDS/TCS Provisions: Taxpayers who are required to deduct or collect tax at source under GST are required to Form GSTR-7 for TDS and Form GSTR-8 for TCS, and not GSTR-1.
Suppliers of Online Information and Database Access or Retrieval (OIDAR) Services: OIDAR service providers from outside India to a non-taxable online recipient in India are required to file Form GSTR-5A instead of GSTR-1.
Casual Taxable Persons (CTPs): CTPs are required to file GSTR-1 during the period of registration.
Special Economic Zone (SEZ) Units and Developers: SEZ units and developers must file GSTR-1 to report their outward supplies.
Prerequisites for Filing Form GSTR-1
Accurate filing of GSTR-1 is important for GST compliance and ensuring smooth credit flow throughout the GST chain. Here are the best practices or prerequisites for filing GSTR-1 correctly:
Valid GSTIN
A valid GST number must be assigned to the business for which the GSTR-1 is being filed.
Accurate Business Details
The business information such as name, address, and so on should be kept updated and should match with the record of the GST authorities.
Invoice Details
Keep a detailed record of all outward supplies, including invoice numbers, dates, values, and applicable GST rates.
HSN/SAC Codes
Ensure that accurate Harmonized System of Nomenclature (HSN) codes for goods and Service Accounting Codes (SAC) for services are used in accordance with GST rules.
Taxable values and tax amounts
The taxable values and tax amounts under CGST, SGST, IGST, UTGST, should be calculated accurately.
Amendments
Any modifications or amendments to the details of outward supplies furnished in the tax returns of previous tax periods should be reported.
Credit/Debit Notes
The details of all the credit and debit notes issued should be provided.
Details of Advances Received
Advances received against supply must be reported along with adjustments of invoices against such advances.
Export Invoices
Details of export invoices should be provided along with the information of shipping bill or bill of export. Moreover, whether the supply is under the letter of undertaking or on a payment basis should be specified.
Nil Rated, Exempt, and Non-GST Supplies
The summary details of nil rated, exempt, and Non-GST supplies should be reported.
Summary of Documents
The summary of all the documents issued during the period such as invoice, revised invoice, debit/credit note, and receipt vouchers must be provided.
Reconciliation
The sales ledger and the data of Form GSTR-1 should be reconciled to ensure the accuracy of reporting.
Sections in Form GSTR-1
GSTR-1 is a comprehensive form that requires taxpayers to provide detailed information about their outward supplies of goods and services. It is bifurcated into various categories or sections to segregate different types of transactions undertaken by the taxpayer. Here are the 13 Sections of Form GSTR-1:
GSTIN
It is the unique goods and services tax identification number of the taxpayer.
Legal Name of the Registered Person
The registered legal name should be entered.
Turnover of the Previous Financial Year
Total turnover of the taxpayer of the previous financial year should be provided.
Taxable Outward Supplies made to Registered Persons (including UIN-holders)
Details of the taxable supplies made to other registered businesses should be provided along with the UIN details.
Taxable Outward Inter-State Supplies to Unregistered Persons where the Invoice Value exceeds INR 2.5 Lakhs
Information should be provided on inter-state supplies to unregistered persons for invoices valued over INR 2.5 Lakhs.
Zero-rated Supplies and Deemed Exports
Details on exports and supplies to Special Economic Zones (SEZs) or deemed exports.
Taxable Supplies to Unregistered Persons other than Supplies covered in Section 5
Information should be provided on taxable supplies made to unregistered individuals that are not covered under Section 5
Nil-Rated, Exempt, or Non-GST Outward Supplies
Details should be provided of nil-rated, exempt, or non-GST outward supplies.
Amendments to Details of Outward Supplies Furnished in Returns for earlier Tax Periods
Corrections or amendments to the details of outward supply details provided in previous tax returns should be furnished.
Taxable Outward Supplies to Registered Persons (including amendments)
Information on taxable supplies made to registered individuals should be provided.
Information on Credit/Debit Notes issued to registered/unregistered persons (including amendments)
Details of credit or debit notes issued should be provided.
Details of Advances Received/Advance Adjusted in the Current Tax Period or Amendments to Information provided in previous tax period
Information of advances received and adjusted in the current tax period should be provided.
HSN-wise Summary of Outward Supplies
Summary of outward supplies classified using HSN codes should be provided.
Steps to File Form GSTR-1
Filing GSTR-1 requires a series of steps to be accomplished. A step-by-step guide for successful filing of Form GSTR-1 is as follows:
Login to the GST Portal
Login using the credentials provided at https://www.gst.gov.in/
Navigate to the Returns Section
After logging in, navigate to the ‘Services’ tab and select ‘Returns Dashboard’ from the drop-down menu. Select the financial year and the return filing period for which Form GSTR-1 is to be filed. Then click on ‘Search’. Find GSTR-1 in the list of returns and select ‘Prepare Online’ or ‘Prepare Offline’ as per choice.
Enter the Invoice Details
If the ‘Prepare Online’ option is selected, the invoice details should be directly entered on the portal. Whereas, if the ‘Prepare Offline’ option is selected, the offline utility must be downloaded first, all the information must be entered and then it should be reuploaded to the portal.
Add Other Required Information
The details of any credit/debit notes issued during the period must be provided. The details of any advances received for services should be provided and it should be adjusted accordingly against the invoices raised.
Review the Draft of GSTR-1
After entering all the details, review the draft Form GSTR-1 to ensure that it is correct and complete. This process is made easy by the GST portal. It provides the option to ‘Generate GSTR-1 Summary’.
Submit Form GSTR-1
After reviewing the form and confirming the accuracy of the same, the ‘Submit’ button should be clicked to freeze the data. After submitting the return, it cannot be modified. The status of Form GSTR-1 will be changed to ‘Submitted’. However, submitted is not equivalent to filed.
File Form GSTR-1 with DSC/EVC
A final submission of Form GSTR-1 should be made either using the Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). After successful filing, an acknowledgment message will be shared and the status of Form GSTR-1 will be changed to ‘Filed’.
Due Date
Filing GSTR-1 requires a series of steps to be accomplished. A step-by-step guide for successful filing of Form GSTR-1 is as follows:
Note:
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The monthly filing requirement for taxpayers is intended to ensure more consistent and detailed transaction reporting.
For Quarterly return filers, Quarterly Return Monthly Payment Scheme (QRMP) allows them to file returns quarterly rather than monthly, reducing the compliance burden.
Late Fees and Penalty
Late fees and penalties for not filing GSTR-1 on time are introduced to encourage timely compliance. The late fee is calculated from the day after the due date to the date the return is actually filed. Here is a tabular breakdown of the late fees and penalties:
Frequently asked questions
Q
Explain Form GSTR-1 in short.
A
Form GSTR-1 is a monthly or quarterly statement of outward supplies that must be submitted by all normal and casual registered taxpayers who make outward supplies of goods and services or both
Q
Who is required to submit Form GSTR-1?
A
Every registered person other than input service distributor, composition taxpayer, persons liable to deduct tax under Section 51, persons liable to collect tax under Section 52, is required to file Form GSTR-1.
Q
Is it mandatory to file Form GSTR-1?
A
Yes. Form GSTR-1 is to be filed mandatorily even if there is no business activity in the tax period. Thus, Nil Return is to be filed in such a circumstance.
Q
Which registered taxpayers do not have to file Form GSTR-1?
A
Following registered taxpayers do not have to file Form GSTR-1:
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A composition taxpayer
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Non-resident foreign taxpayer
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Online Information Database and Access Retrieval (OIDAR) service provider
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Input Service Distributors (ISD)
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Tax Deducted at Source (TDS) deductors, and
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E-commerce operators collecting tax (TCS)
Q
What is the cut-off date for amending details in invoices for the previous financial year?
A
The deadline for updating invoice details for the previous financial year is November 30th of the following financial year. Correction of an error or omission in Form GSTR-1 for invoices from the previous financial year is not permitted after November 30th of the following financial year.
Q
When should Debit Notes be reported in the return?
A
Debit notes should be reported in the return for the month in which they were issued by the supplier.
Q
When should Credit Notes be reported in the return?
A
Credit notes should be reported in the return for the month in which they are issued but no later than the return for the September month following the end of the financial year in which such supply was made, or the date of furnishing the relevant annual return, whichever is earlier.
Q
Is it necessary for a taxpayer to report both credit and debit notes separately for supplies to consumers?
A
No. The credit and debit notes can be reported in Form GSTR-1 in a consolidated figure, net of the values of credit and debit notes issued.
Q
Is the shipping bill number mandatory when declaring export invoices in Form GSTR-1?
A
No. If a taxpayer does not have the shipping bill number and date, he can provide details of the export invoices in Form GSTR-1 and file the return.
Q
How should exempt supplies made through an e-commerce operator be reported in Form GSTR-1?
A
Exempt supplies should be reported as a consolidated figure under the head Nil Rated and Exempt Supply in Form GSTR-1.
Q
What communications are received after successful submission of Form GSTR-1?
A
After successful submission of Form GSTR-1 following communications are received:
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An Application Reference Number (ARN) is generated upon successful filing of Form GSTR-1.
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A message and an email is also sent to the taxpayer at the mobile number and email address of the primary authorized signatory.
Q
Will a taxpayer be notified if the Form GSTR-1 is not filed by the due date?
A
Yes. The taxpayer will receive a system generated return defaulter notice in Format 3A, if the GSTR-1 is not filed within the due date.
Q
Suppose a taxpayer has not filed GSTR-1 for the previous month, can he file GSTR-1 for the current month?
A
No. As per Section 37(4) of the CGST Act, a taxpayer cannot file GSTR-1 of the current month if the previous return has not been filed. Furthermore, as per Section 39(10) of the CGST Act, a taxpayer cannot file GSTR-3B if the GSTR-1 for the same tax period has not been filed.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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