GST (Goods and Services Tax) is a unified taxation system implemented in India since July 1, 2017. It has replaced multiple indirect taxes such as VAT, service tax, and excise duty. GSTR-1 is a return form that businesses registered under GST need to file on a monthly or quarterly basis. In this article, we will cover how to file GSTR-1 and get details from it.
Part 1: What is GSTR-1?
Part 2: Who needs to file GSTR-1?
Part 3: How to file GSTR-1?
Part 4: Details required to file GSTR-1
Part 5: Benefits of filing GSTR-1
Part 6: Conclusion
Part 1: What is GSTR-1?
GSTR-1 is a monthly or quarterly return form that captures the details of outward supplies made by the registered supplier in a particular period. It contains details of all sales transactions made by the supplier, including the name and address of the buyer, invoice number, tax rate, and amount of tax collected. GSTR-1 must be filed on or before the 11th of the following month for monthly filers and on or before the 30th of the following quarter for quarterly filers.
Part 2: Who needs to file GSTR-1?
Every registered person under GST needs to file GSTR-1, except for the following:
1. Composition dealers: They need to file GSTR-4 instead of GSTR-1.
2. Non-resident taxable persons: They need to file GSTR-5 instead of GSTR-1.
3. Input Service Distributors: They need to file GSTR-6 instead of GSTR-1.
4. E-commerce operators: They need to file GSTR-8 instead of GSTR-1.
5. Taxpayers deducting TDS: They need to file GSTR-7 instead of GSTR-1.
6. Taxpayers collecting TCS: They need to file GSTR-8 instead of GSTR-1.
Part 3: How to file GSTR-1?
GSTR-1 can be filed online on the GST portal (www.gst.gov.in). Follow the below steps to file GSTR-1:
Step 1: Log in to the GST portal using your credentials.
Step 2: Go to the 'Returns' tab and select 'Returns Dashboard.'
Step 3: Select the financial year and return filing period for which you want to file GSTR-1.
Step 4: Click on the 'Prepare Online' button under the 'Monthly Returns' section.
Step 5: Select the sections you want to file, such as B2B (business to business), B2C (business to customer), etc.
Step 6: Fill in the details of outward supplies made in the selected section.
Step 7: Preview the details entered and make corrections if required.
Step 8: Click on the 'Submit' button to file GSTR-1.
Step 9: After submitting the return, you need to digitally sign the return using your Digital Signature Certificate (DSC) or Aadhaar OTP.
Step 10: Once the return is filed and signed, an ARN (Acknowledgment Reference Number) is generated.
Part 4: Details required to file GSTR-1
The following details are required to file GSTR-1:
1. GSTIN: The Goods and Services Tax Identification Number of the supplier.
2. Name and address of the supplier: The name and address of the registered person filing the return.
3. Tax period: The month and year for which the return is being filed.
4. Invoice details: The invoice number, date of issue, and value of the outward supply made to each registered person or unregistered person (B2B or B2C) must be provided. For B2B transactions, the GSTIN of the buyer should also be mentioned.
5. Details of Credit/Debit Notes: If any credit or debit notes have been issued during the tax period, the details of the same must be provided.
6. HSN Code: The Harmonized System of Nomenclature (HSN) code must be mentioned for all goods and services supplied, except for those exempted under GST.
7. Tax rate and tax amount: The applicable GST rate and the amount of tax charged on the supply should be mentioned for each transaction.
8. Export details: For all supplies made to foreign countries, the details such as the name of the country, invoice number, date of issue, and value must be provided.
9. Nil return: If no supplies have been made during the tax period, a nil return must be filed.
Part 5: Benefits of filing GSTR-1
Filing GSTR-1 has several benefits for businesses, such as:
1. Compliance: Filing GSTR-1 is mandatory for businesses registered under GST. Non-filing or late filing of returns can result in penalties and interest charges.
2. Input Tax Credit (ITC): ITC can be claimed only if the supplier has filed GSTR-1 correctly and on time.
3. Transparency: Filing GSTR-1 enables the government to keep track of all the supplies made by the registered supplier, thereby bringing more transparency to the system.
4. Business efficiency: Filing GSTR-1 on time can help businesses avoid last-minute rush and ensure the smooth functioning of their business operations.
Part 6: Conclusion
Filing GSTR-1 is an essential compliance requirement for businesses registered under GST. It is a detailed return that captures the details of all the supplies made by the registered supplier during a particular period. Filing GSTR-1 on time can help businesses avoid penalties and interest charges and also enable them to claim Input Tax Credit (ITC). With the help of this article, businesses can understand the process of filing GSTR-1 and the details required to file it.
