GSTR-1

March 31, 2025 by Team Instabizfilings

What is GSTR-1?

GSTR-1 is a monthly or quarterly return that businesses registered under GST must file to report their outward supplies (sales). It contains details of invoices, debit-credit notes, and any other sales-related transactions made during the tax period.

Who Should File GSTR-1?

All registered businesses under GST, except:

Composition scheme taxpayers
Input service distributors (ISD)
Non-resident taxable persons
Taxpayers liable to deduct or collect tax at source (TDS/TCS)

Due Dates for GSTR-1 Filing

GSTR-1 filing is based on turnover:

Monthly Filing: Businesses with an annual turnover of more than ₹5 crores must file by the 11th of the next month.
Quarterly Filing: Businesses with a turnover up to ₹5 crores can opt for quarterly filing under the QRMP scheme, due by the 13th of the month following the quarter.

Details to be Reported in GSTR-1

GSTR-1 contains multiple sections to report different types of sales transactions:

Basic Details: GSTIN, business name, year, and tax period.
Invoice-wise Details: B2B transactions, including GSTIN of the buyer.
B2C Large Transactions: Sales above ₹2.5 lakhs to unregistered buyers.
B2C Small Transactions: Consolidated details of small transactions.
Exports & SEZ Supplies: Sales to international customers and SEZ units.
Debit & Credit Notes: Adjustments made to invoices.
Nil-Rated, Exempt & Non-GST Supplies: Details of non-taxable sales.
HSN Summary: Harmonized System Nomenclature (HSN) codes of goods/services sold.

Steps to File GSTR-1 Online

Login to GST Portal (www.gst.gov.in)
Navigate to the Returns Dashboard and select the tax period.
Click on Prepare Online/Offline under GSTR-1.
Enter invoice-wise and summary details.
Click on Generate Summary and validate data.
Submit the return and file using DSC/EVC.
Download the field return for records.

Consequences of Late Filing

Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST); Nil return attracts ₹20 per day.
Interest: The principal amount attracts interest at a rate of 18% annually for the entire tax debt.
GST Compliance Rating Impact: Delay in filing affects compliance score.

Common Errors & Solutions

Error	Solution
Incorrect GSTIN entered	Verify GSTIN from the GST portal before submission
Mismatch in invoice details	Cross-check with accounting records
Non-inclusion of debit/credit notes	Ensure all adjustments are included before filing
Incorrect HSN codes	Refer to the latest HSN code list and update records

Revisions in GSTR-1

Once filed, GSTR-1 cannot be revised.
Any corrections must be made in the next month’s return by adjusting invoices.

Conclusion

Businesses need to file GSTR-1 correctly as well as promptly to maintain GST compliance. Businesses need to keep proper records and automate GST by using software to simplify their accounting operations.

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