GSTR-1 is a monthly or quarterly return statement that requires a regular trader to record all outbound supplies made throughout the month or quarter. In basic terminology, GSTR-1 return filing is a form that must be filled out with information about sales and other outgoing supplies. Furthermore, this return does not apply to composition sellers, foreign residents, and holders of Unique Identification Numbers.
Accordingly, taxpayers shall not be permitted, under Section 37 of the FORM GSTR-1, to reveal information from external suppliers on goods or services unless the return given by the FORM GSTR-3B takes two months to complete.
Following the provisions of section 39 (1), taxpayers are obliged to produce a return for each quarter. If GSTR 3B for the preceding tax period is not filed, they are not authorized to provide or use the invoice furnishing facility for information about out-of-home items or services, or both, under Section 37 of FORM GSTR-1 (IFF).
From January 1, 2021, monthly GST Return Filing will be able to automatically populate ITC from suppliers’ GSTR 1 using the newly designed form GSTR 2B, and quarterly filers will be able to do so starting April 1, 2021.
Who should file GSTR-1?
The GSTR-1 file should be held responsible for every registered dealer. This is needed for any transactions and sales within a certain month, meaning that you have GSTR-1, as a registered dealer, even when there are no sales or transactions. Filling out the GSTR-1 is not required for the following individuals.
- An Input Service Distributor (ISD) – You are categorized as a GST input service distribution provider if you collect invoices for goods utilized by your branches.
- Composition Dealer – If your organization has been registered under the GST composition scheme, you are recognized as a composition dealer. The scheme for the composition of companies with yearly revenues of up to Rs 1.5 crore has become accessible as of 1 April 2019.
- A service provider of online information, database access, or retrieval.
- Non-resident Taxable Individual – If you import products and services from outside India or manage the business of a non-resident Indian (NRI), you are considered a non-taxable resident person (NRI).
- A taxpayer is responsible for the collection of tax at source (TCS) or a taxpayer responsible for the deduction of tax at source (TDS).
Criteria for GSTR-1 Return Filing
- You have to be a GST registered taxpayer and have a 15-digit GSTIN based on your PAN.
- For all your transactions, covering intra-state, inter-state, business-by-business (b to b), and retail (b to c), you have to maintain precise invoices with unique serial numbers. Exemption and non-GST transactions, as well as stock shipments between your business locations in different countries, fall under this category.
- To authenticate your return, either by utilizing an EVC or a digital signature certificate (of class 2 or higher), you require an OTP from your registered cellphone. An Aadhar-based e-sign can also be used to file GST returns.
Where can you file the GSTR 1 return?
GSTR 1 is required to be filed via the GST portal (www.gst.gov.in). To complete and upload GSTR 1 returns to the GST system, the government created an offline facility.
How to file GSTR 1?
GST Return Filing is an extensive process that needs due diligence by the taxpayer when it comes to providing details of the invoice and additional information relating to taxation.
A total of 13 sections are included in the GSTR-1 return form, although these sections do not have to be completed.
The following are some of the elements of the GSTR 1 form sections
Section 1, 2, and 3: GSTIN details and the previous year’s aggregate sales.
Section 4: Excluding zero-rate supplies and considered exports, taxable external supplies to registered people (including UIN holders).
Section 5: Taxable external supply for non-registered persons with more than INR 2.5 Lakh invoice value.
Section 6: Null rate supply and considered export details.
Section 7: Specifications of taxable supplies for non-registered people other than the supplies referred to in Table 5.
Section 8: Descriptions of nil-rated, exempted, and non-GST outward supplies.
Section 9: Information about debit notes, credit notes, refund vouchers, and any revisions to taxable outward supply in the GSTR-1 returns for previous tax periods in tables 4, 5, and 6.
Section 10: Complete with debit and credit details supplied to people not registered.
Section 11: Descriptions of advances or changes to the information given in the previous tax period corrected during the current tax period.
Section 12: HSN summary of external supply.
Section 13: List the documents issued during the tax year.
In general, invoice-level, rate-level, or state-level data of outward supplies made throughout the month is expected to be entered in the GSTR-1 format. The credibility of a company will suffer if the GST Return Filing is not filed on time.
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