You must file GSTR-1 with the utmost care because it serves as the basis for all future GST forms and online GST registration in general. It tracks the supply of goods outwardly.
You must submit it on a monthly or occasionally quarterly basis so that you can keep track of your business. Any person involved in the delivery of products must therefore specify the supply’s terms and the recipients. By doing this, the information filed in GSTR-1 will automatically fill the returns for the inward supply.
Who should submit it?
Every registered dealer must submit GSTR 1 irrespective of the sales and transactions for a specific month. Exceptions are listed below:-
- Input service distributor (ISD) who receives payments for services used by branches
- Company registered for GST under composition scheme
- Provider of online data, database access, or information retrieval services
- If you import products and services from outside India or are in charge of running a business on behalf of a non-resident Indian
- Taxpayer liable for deducting tax at source (TDS) or collecting tax at source (TCS)
How to submit it?
The steps for it by online GST registration are :-
- Log into GSTN portal using user ID and password provided
- Search for “services”
- Select “returns”
- On “returns dashboard”, choose month and year you want to file for
- After seeing returns for the given time period, click GSTR 1
- You can file your returns electronically or upload them
- You have the option of adding invoices or uploading them
- Check the details and the accuracy
- Select “Submit”
- After entered data has been verified, click “file GSTR 1”
- E-sign the form or digitally sign it
- When a pop-up is displayed on the screen, click “yes” to confirm the filling of the GST return
- Watch for generation of Acknowledgement Reference Number (ARN)
Filing of it
There are 13 separate fields on GSTR-1 that you must complete for online GST registration which are as follows :-
- Pre-filled answer for the GSTIN of the individual who submitted the return
- Name that was automatically filled in as the return filer
- Closing balance will be automatically auto-populated, when previous financial year’s total turnover is entered
- Information about taxable outgoing supplies made to a registered individual
- On transaction exceeding Rs. 2.5 lakh, information on interstate outbound supply to a final customer
- Supplies that are zero-rated and deemed exports (to EOUS and SEZS)
- Total aggregation of all outgoing supplies for the month, up to Rs. 2.5 lakh via e-commerce companies
- Details of exempted, non-GST, and zero supply items while completing the online GST registration
- Any necessary corrections or modifications to outbound supplies from prior tax periods, including debit/credit notes and refund vouchers
- Information about external supplies listed using HSN codes
- Taxes owed on the received advance payment
- Taxes paid for prior accounting periods or periods
- For the period for which GSTR 1 is being filed :- Invoices, revised invoices, credit notes, debit notes, and other documents issued
What is required to file it?
In order to file GSTR-1, you require :-
- Actual and legal Goods and Services Tax Identification Number (GSTIN)
- User ID and password for login in portal
- Valid Digital signature certificate (DSC), unless you are able to electronically sign, using supplier class
- Aadhaar card if you plan to e-sign
- Access to cellphone number listed on your Aadhaar card
Are there penalties for filing it late?
GSTR-1 has a deadline for submission through online GST registration which is the tenth of the following month. This only applies to companies with a turnover of more than Rs. 1.5 crore. Otherwise submit the return quarterly by the final day of the relevant period.
The penalty costs 50 rupees or 20 rupees per day, the latter is applicable if you fail to file because you have no returns to do so.
What to bear in mind while filing?
- Double check GSTIN and HSN codes entered
- Identify whether it’s an intrastate or interstate transaction
- GSTR-1 is a requirement for online GST registration but you are exempt from paying taxes until you file GSTR-3B
- Upload invoices periodically throughout the month to prevent bulk submissions
- Digital signature certificate(DSC) must be provided by businesses like LLPS and FLLPs
- Suppliers including proprietors, partnership businesses and others can electronically sign it
- SGST charged will be in accordance with the new state if point of supply has relocated and is now located in a different state
- Use third-party software to submit it quickly
Knowing about GSTR-1 will make it easier for you to comply with GST regulations and complete the online GST registration process easily. Reach out to our team at Finaccle today who will assist you on how to take advantage of the system and increase savings!