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Since the tidal game of GST rolled out and it has paved the way for a uniform and systematic reporting system that is rarely found anywhere else. This unique system of transgression and periodical transaction assessments provides for a much effective credit flow, removes chances of corruption and illegal transactions.
To achieve a higher degree of control and monitoring, the government came up with an effective form-based reporting system that needs to be filed either monthly, quarterly or yearly, as the case may be, by the dealers and manufacturers alike. The accumulation of all uploaded data will undoubtedly act as a common reservoir for any authority to access. Thus the beginning of GSTR1.
What Is GSTR-1?
It is where the suppliers will report their outward supplies during the reporting month. As such, all registered taxable persons are required to file GSTR-1 by the 10th of every following month. It is the first or the starting point for passing input tax credits to the dealers.
Who needs to file GSTR-1?
GSTR-1 has to be filed by “all” taxable registered persons under GST. However, there are certain dealers who are not required to file GSTR-1, instead, are required to file other different GST returns as the case may be. These dealers are
It has to be filed even in cases where there is no business conducted during the reporting month.
What needs to be filled in GSTR-1?
GSTR-1 has 13 different heads that need to be filled in. The major ones are enlisted here:
The form has to be digitally signed in case of a Company or an LLP, whereas in the case of a proprietorship concern, the same can be signed physically.
Mistakes can be common. However, it is important to realize that it can make your GST reflection go wrong or worse fine. The mistakes can be as puny as mentioning incorrect HSN codes, Service Accounting Codes and can extend up to mentioning incorrect GSTIN, charging incorrect rates of tax, treating a sale as an intra-state sale instead of inter-state sale or vice versa, mentioning a tax invoice twice and the like.
The supplier while filing the GSTR-1 can make these common mistakes. Apart from the above, situations may arise that ship to address of the customer can change. This common change can be witnessed while filing GSTR-1.
There may be cases wherein details mentioned by the supplier are incorrect. In these cases, there is a possibility for the dealers to amend the errors or omissions after filing GSTR-1. In a normal scenario, the details filed by the supplier is rejected by the recipient of the goods or services, then the supplier will receive an intimation to that effect, wherein he can amend the same. Where the recipient inadvertently accepts the invoice, oblivious of the error, then the supplier has to report the same to the Jurisdictional Authority citing such error and its rectification. The Jurisdictional Authority will have to option to make good such error, after ascertaining the facts of the case.
Where an inter-state sale is treated as an intra-state sale and subsequently, IGST is charged instead of CGST and SGST, then the supplier has to pay the amount of IGST separately to the Ministry and claim for a refund of the excess CGST or SGST. Again, he also has the option to claim the input tax credit on the CGST / SGST amount inadvertently paid by him against CGST, SGST, or IGST output liability, as per the prescribed rules.
In some cases, the supplier may be required to change the information in a tax invoice, which is already uploaded in GSTR-1. It has to be noted that if the recipient accepts the details of the supplier as mentioned in the GSTR-1, then the supplier will have no option to amend or make any changes whatsoever in the invoice document. The supplier has to issue a supplementary invoice or a credit note against the invoice in which he wants to make any changes.
To negate the effects of the double claim of input tax credits, suppliers shall install a system, which derives a unique combination of the financial year, invoice number, and the GSTIN. The system will automatically display the error in case there is a duplicate invoice being punched in.
There can be chances that the Point of Supply in an invoice is changed over a reasonable period of time. This new point of supply can happen to be in a different state. In that case, the SGST part charged will be reversed and passed on to the new state.
All that I need to know about filing GSTR1:
1) What is the checklist before filing Form GSTR-1?
The first and foremost requirement is having a valid Goods and Services Tax Identification Number (GSTIN). The supplier will be notified with a User ID and Password that will enable the user to file returns. Next, the supplier will be required to have a valid digital signature certificate (DSC). This DSC is obligatory for companies, LLPs (Limited Liability Partnerships), and FLLPs (Foreign Limited Liability Partnerships). Other suppliers, i.e. Proprietors, partnership concerns, HUF, etc. have the option to “E-sign” the form. In that case, a valid Aadhar Card Number is required. An OTP for verification shall be sent across on the registered mobile number as mentioned in the Aadhar Card.
2) How shall I file GSTR-1?
After going through the checklist, suppliers need to log in to the GSTN portal with the given User ID and password, follow these steps to file their returns successfully.
3) What is the due date of filing GSTR-1? What if I don’t file my returns within the due date?
The due date for filing GSTR-1 is the 10th of the following month. If the dealer does not file GSTR-1 where it is mandatory to do so, then a late fee will be charged to the dealer.
The late fee is an amount of Rs. 100 / act / day, i.e. Rs. 300 shall be charged on account of IGST, CGST and SGST per day. Moreover, this late fee is calculated automatically after filing of GSTR-1.
4) Can you upload invoices any time before filing the return?
Yes. Invoices can be updated on a regular basis before filing GSTR-1. Technically, dealers have a time slot of 40 days to upload their invoices, i.e. from the 1st of the reporting month till the 10th of the next month. There can be several changes made to the list of invoices during this period.
5) The field “turnover” is a mandatory field in GSTR-1. How shall I fill it up?
This field is a one-time field and has to be filled up manually during the first return. It will be automatically populated every month based on the details furnished in the return.
Apart from filing GSTR-1 directly on the GSTN portal, you can use third-party software which is simpler to use. Most of this software accepts data from your existing accounting software and helps you upload it to the GSTN portal. Almost all the GSPs have come up with their return filing solution.
Here goes Your GSTR1 Form:GSTR-1