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A Complete Overview of GSTR 1

GSTR1 Introduction:

The guidelines that are set by GST council are set in such a way that the whole process looks like a relay race.

GSTR 1: The first runner in GST return filing process is GSTR1 (Carrying details of Outward supplies made by supplier of goods or services) which has to be filed on or before 10th of the following month

GSTR1A: The light is then passed on to next runner in the race i.e., GSTR1A (where in the amendments in Form GSTR2A made by recipient of Supplies are either accepted or rejected by the supplier of goods or services) and the amendments window is open from 15th of the following month.

GSTR2:  Form GSTR2 ( contains details of all the purchases transactions of a registered dealer for a month and also supplies received under reverse charge mechanism) is the lap  before the finish line, where the journey of  Form GSTR1 and GSTR1A ends because this Form is generated for the recipient of Supplies carrying  the information generated in GSTR1.

GSTR3B: Is the substitute runner in place of GSTR 1 and GSTR2 and this substitution was to be given effect because the track (GST network) laid for the whole process was not ready till date and the government also wanted that it should not harass tax payers who were in transition phase right from the beginning go and so it allowed tax payers to just furnish summary returns of the taxes paid and credit utilised by them on their outward and inward supplies respectively. And decided that the details which would be collected by GSTR3B would be used to match with GSTR3 the final return when ever GSTR1 and GSTR2 would be filed by the tax payers.

GSTR3: The final lap where the whole GST return filing process ends is Form GSTR3 (containing consolidated details taken from GSTR1 and GSTR2) is a final return which the tax payer has to file on or before 20th of the following month.

What is GSTR1 Form?

GSTR1 Form is a statement capturing details of Outward taxable supplies of regular dealers made during the tax period the assessment for which is made in the month following the tax period. Broadly speaking, the GSTR1 format requires dealers to capture all B2B invoices as well as invoices made to unregistered business houses and to end consumer i.e., B2C invoices both at invoice level and? rate-wise level as well.

Particulars to be filed under GSTR1:

1. GSTIN: Each registered taxable person on registration under GST regime will be allotted a all India PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).The identification of taxpayer will be auto-filled at the time of return filing in future.

2. Name of the Registered Person: These will be auto populated at the time of logging into GST portal.

3. Aggregate Turnover in the preceding Financial Year: To be filled only in the first year of GST. In the following years to come these will be auto filled from the details of previous year.

4. Taxable outward supplies to a registered person (B2B): All taxable outward supplies are required to be captured under this section. Supply here to include supplies under reverse charge mechanism, supplies made through e- commerce portal attracting TCS,

5. Taxable outward supplies to a consumer (B2C): Under this section, taxpayer has to furnish the details of inter state supplies made to unregistered person or end consumer where the invoice value is more than 2.5 lacs.

6. Zero rated supplies and Deemed Exports: It includes all kinds of zero rated supplies like exports (including deemed exports) and supplies to SEZ units Noticeably such supplies would only attract IGST.

7. Taxable outward supplies to a consumer (B2C other than point 5 above): This heading captures the supplies that are made to unregistered person/end consumer other than those covered in Table 5. This means Supplies (both interstate and intrastate made to unregistered/end consumer where the invoice value is less than 2.5 lacs are to b recorded under this head.

8. Nil rated, Exempt, and Non GST outward Supplies: All inter state, intra state supplies of Nil rated, exempt supplies, or Non GST supplies has to be captured under this heading. But if already included in any of the heading under 5, 6, or 7, the taxpayer can furnish only Non-GST supplies here.

9. Amendments to details of Outward supplies of Earlier Tax Periods: Any amendments required to be made in the current tax for earlier tax periods affecting the details mentioned in headings  4, 5 or 6 are captured here This includes Debit notes, Credit notes etc.,

10. Amendments to Details of Outward Supplies of earlier Tax Periods: Any amendments required to be made in the current tax for earlier tax periods affecting the details mentioned in headings 7 (i.e., supplies to unregistered persons/ end consumer)  are captured here.

11. Taxability of Amount Received in Advance: Any advances received during the tax period for which invoices has not been issued should be mentioned in this section and also those advances received during the tax period where in the invoice is prepared in a current? tax period and for which advance has been received in earlier tax period arousing the need to adjust the tax liability against such advances received must be graphed under this heading.

12. HSN-wise summary: HSN wise categorized summary of your outward supplies are captured under this heading. HSN code must be reported. It will be optional for taxpayers having annual turnover up to Rs. 1.50 Crore. However, description of goods is mandatory. HSN code at two-digit level for taxpayers having annual turnover in the preceding year above Rs. 1.5 Cr. but up to Rs. 5 Cr., and at four-digit level for taxpayers having annual turnover above Rs. 5 Cr. and also the column UQC referring to unit quantity code needs to be keyed in and it needs to be noted here that only the prescribed unit of measure (UOM) will be accepted by the portal. 

13. Documents issued: The serial numbers of all the documents issued during the tax period are required to be furnished under this heading. These documents include all the? invoices revised invoice, Debit note, Credit note, receipt voucher, payments voucher, refund voucher, delivery challan for job work, for supply on approval, supply of liquid gas, and delivery challan in cases other than by way of supply.

So It's just not enough to remember the thirteen columns of GSTR1 which one needs to file when he makes a taxable outward supply but one has to also remember the due dates within which these returns are required to be filed so that there is no default in filing the returns. Let's see some important dates in corresponding to GSTR1 return.

Periodicity of Returns in GST for Normal Tax Payers:

Return Type: Details of Outward supplies of goods/services
GSTR1 Due date: On or before 10th of next month
Extended Date

Rule 61(5) of the CGST Rules, 2017 – where time limit for furnishing of details in GSTR1 form and in form GSTR2  has been extended and the circumstances so warrant, return in Form GSTR3B, in lieu of Form GSTR3, may be furnished in such  manner and subject to such conditions as may be notified by the commissioner – this rule was a result of the havoc which tax payers faced while interacting with GST network for the very first time. The government already knew that tax payers won't be able to transit easily from one phase of tax structure to other phase which is completely new containing bulk returns and compliance procedures though everything is simplified every person takes his own time to understand and welcome the change and so the government pre planned these set of rules to give relief to tax payers in the initial stages of GST and as a result amended the act by inserting these set of rules which stated that where any circumstances demands for extending of time period for filing the prescribed set of returns (GSTR1,2 and 3) the government may do so by giving effect to CGST rules and by this way GSTR3B was inserted into the GST act. And we will be filing GSTR3B till such period notified by the government.

Important Updates: Return filing dates have been extended for the months of July? and August  2017 vide Notifications No. 18/2017 to 21/2017 – Central Tax, Dt: 08.08.2017. You can check this notification on GST portal by giving notification search on GST portal. So what are the new dates we need to remember now on account of extension of time period ?

New dates to remember?:

GST Return
Tax Period
GSTR1. July 17 10th August 5th October
GSTR1 August 17 10th September 5th October
GSTR1. September.   5th October. 10th October

Since the due dates were extended for filing GSTR1, GSTR2, GSTR3 for the month of July and August 2017 government introduced and notified Form GSTR3 needed to be filed in lieu of Form GSTR3,hence GSTR3B was added to fill the temporary slot and these returns are called provisional returns by the GST law.

[**Important Updates: The due date for filing Form GSTR1 for the tax period July, 2017 has again been extended vide notification and the new due date for filing GSTR1 for July,17 would be 10th of September instead of 05th September. This was notified by? GST council in the recent meeting.]

Conclusion:  Where in the government has started to feel the heat the taxpayers are experiencing there have been continuous amendments in return filing dates, even the Tran 1 utility forms were made available for filing very lately we can say that GST is a learning process for both taxpayers and government as well. Though GSTR1 is a very comprehensive and difficult return to understand but i would like to tell you that ?there are no reasons to worry. Since during the implementation of GST regime it was assured to taxpayers that any default in filing the return would not attract penalty and interest. And when we look? on other side  can see the software segment players are getting updated with the GST compliances and trying to fit in our ERP system lending useful hand in combatting with GST returns and compliance procedures. The most popular ERP software, Tally, with it's recent Tally.ERP 9 Release 6.1 has simplified GST return filing process. You can generate GSTR-1 form within the product itself. In its GSTR reporting segment, upon matching the information, it can then be validated using GSTN offline tool and uploaded to the GSTN portal. It is very helpful to use Tally software as it helps in meeting the GST compliance needs and file returns easily.