GSTR 1 is a monthly Statement of Outward Supplies all normal registered taxpayers to be filed in a given tax period in which they shall furnish details of all

a. Outward supplies to registered persons

b. Outward supplies to unregistered persons (consumers)

c. Details of Credit/Debit Notes issued against invoices

d. Zero rated, exempted, and non-GST supplies

e. Exports

f. Advances received in relation to future supply.

Introduction

1. Who is required to file the GSTR 1?

All Supplier Taxpayers are required to file the GSTR 1 (Statement of Outward Supplies). They can do this using the GST web portal, the Offline Utility provided specially for Returns, or a GST Suvidha Provider (GSP).

Supplier Taxpayers will report invoice level information on HSN/SAC basis in the GSTR 1. Further, GSTR 1 needs to be filed even if there is no business activity (Nil Return) in the tax period.

2. Which taxpayers are not required to file the GSTR 1?

The following taxpayers are not required to file GSTR 1

3. What are the pre-requisites for filing GSTR 1?

Pre-requisites for filing GSTR 1 are:

a. The taxpayer should be a registered taxpayer and should have an active GSTIN.

b. The taxpayer should have valid login credentials (i.e., User ID and password).

c. The taxpayer should have an active and non-expired/revoked digital signature (DSC), in case the digital signature is mandatory. DSC is mandatory in case of all companies, Limited Liability Partnerships (LLPs) and Foreign Limited Liability Partnerships (FLLPs).

d. In case a taxpayer wants to use E-Sign, they must have a valid Aadhar number with access to the mobile number registered with Aadhar authority (UIDAI) as OTP will only be sent on the registered mobile number. In case the taxpayer has changed the mobile number, they must first update the same with UIDAI.

e. For cancelled GSTINs, the taxpayers will have an option to file GSTR 1 for the period u the up to the date of cancellation however it will not be mandatory.

4. By when do I need to file the GSTR 1 for a given tax period? OR What is the due date for filing the GSTR 1?

The due date to file GSTR 1 for a given tax period is 23:59:59 hours (11:59:59 PM) of the 10th day of the succeeding month.

For example, GSTR 1 for Goods/Services supplied during the calendar month of July 2017 should be filed by 23:59:59 hours (11:59:59 PM) on 10th August, 2017.

5. Can the date of filing GSTR 1 be extended?

 Yes, the date of filing GSTR 1 can be extended by the Board/Commissioner by notification.

6. What do outward supplies include?

The outward supplies include all goods and/or services supplied during a tax period as under:

  • Intra-state supplies
  • Inter-state supplies
  • Exports
  • Debit notes
  • Credit notes
  • Supplementary invoices
  • Nil rated, Exempted and Non-GST Outward Supplies
  • Details of advances received against future supplies

7. How should the value of turnover to be in entered in the mandatory field for the same on the landing page of GSTR 1?

The turnover value in Table 3 of GSTR 1 has to be entered manually for the first year. From the second year of implementation, the system will auto-calculate the turnover based on all the annual returns filed for all the GSTINs associated with a given PAN (PAN-based turnover). However, the turnover value will be editable and you will have the option to amend it.

8. What does the ‘Total Invoice Value’ column indicate in GSTR 1? What does the ‘Total Invoice Value’ column indicate in GSTR 1?

The ‘Total Invoice Value’ column in GSTR 1 is for the invoice value that is inclusive of taxes. There will be no validation that the invoice value is equivalent to taxable value plus the tax amount. The GST system will generate reports where the difference between the invoice value and the taxable value is greater than INR 1,00,000 or more than 5%. The reports will be examined by the Jurisdictional Officer.

9. Can I add Goods and Services in the same invoice?

Yes, you can add Goods and Services in the same invoices.

10. What is meant by B2B Supplies, B2C Supplies, Debit Notes, and Credit Notes?

B2B Supply refers to a transaction between registered taxable entities/persons (Business-to-Business).

B2C Supply refers to a transaction between a Registered Supplier and an Unregistered Buyer (Business-to-Consumer).

Debit Note is a note issued against an invoice when the Supplier issue the original invoice at a lesser value than the actual value of goods and/or services provided.  The difference amount is accounted in the form of a Debit note.

Credit Note is a note issued against an invoice when invoice is issued at a higher value than actual value of goods and/or services provided.

11. In case of Receipt of advance by the Supplier from a Receiver, is the supplier liable to pay tax on such an advance amount?

Yes, Supplier is liable to pay tax on advances received from Receivers.

12. How is the tax paid on such advance payments adjusted against the invoice(s) issued in the subsequent tax period(s)?

Whenever an invoice is issued against an advance payment, the return has a mechanism to adjust advance amount against an invoice value and tax is payable only on the balance amount.

13. How is Export treated under the GST regime?

Exports are treated as Inter-State Supplies and the Supplier has to pay IGST on it.

14. Is it required to submit supplies effected through E-Commerce?

Yes. Suppliers have to provide the details of all Supplies effected through E-Commerce in the GSTR 1.

15. Who is liable to pay tax in Reverse change mechanism?

Service receiver is liable to pay tax in case of Full Reverse Charge mechanism.

16. Do I need to upload the invoice(s) at the time of filing GSTR 1? Until when can changes be made to an uploaded invoice?

Taxpayers can upload invoices at any time during the tax period and not just at the time of filing. For example, let’s take July 2017 as the tax period – the tax payer can upload invoices from 1st July to 10th August, so a total of 40 days are available for upload of invoices.

A taxpayer can change/modify/delete invoices any number of times till they file the GSTR 1. The uploaded invoice details are in a draft version till the GSTR 1 is filed and can be changed irrespective of due date.

17. Can there be duplicate invoice series in a particular financial year for a particular GSTIN?

For a particular GSTIN, there cannot be duplicate invoice series in a particular financial year. In case the same series is used for different invoice books, as per the current practice, a prefix must be added to the series to make it unique.

18. Is the HSN code validation for number of digits based on the turnover of the taxpayer?

Yes, the HSN code validation for number of digits is based on the turnover of the taxpayer. If the turnover is greater than INR 5 crores, HSN should be a minimum of 4 digits. If the turnover is equal to or greater than INR 1.5 crores and less than or equal to INR 5 crores, it should be a minimum of 2 digits from the second year of the GST implementation. If the turnover is more than INR 5 crore, SAC is mandatory. It is mandatory for all the taxpayers to select the Goods/Service tab when uploading an invoice.

19. Is the Rate of Tax validated with HSN while filing GSTR 1?

The Rate of Tax is not validated with HSN at the time of filing return. The rate of tax can be entered manually. The HSN of items and their corresponding tax rate can be searched on the GST portal.

20. What will be the flow in case of net IGST/CGST/SGST/CESS being negative?

If the net balance of IGST/SGST/CGST/CESS is negative, the same will be taken to the cash ledger.

21. What is the cut-off date to upload an invoice to avail ITC?

The invoices generated prior to the date of registration of the receiver will not be allowed to be uploaded to avail the ITC claim.

22. What is the cut-off date for entry of invoices in GSTR 1 in case a normal taxpayer is converted into a compounding taxpayer?

In cases where a taxpayer has been converted from a normal taxpayer to the compounding scheme, entries in GSTR 1 filed after the date of conversion can be made only for invoices/documents dated prior to the date of conversion. Further, rectifications will be allowed only in respect to the original invoices/documents issued prior to the date of conversion.

23. What is the due date for the payment of monthly tax liabilities for normal taxpayers?

A normal taxpayer can discharge their return related liability at the time of filing of GSTR 3. The current due date for filing GSTR 3 is 20th of the succeeding month.

24. From where can I file the GSTR 1 and what are the steps involved?

  • Taxpayer logs into the GST portal using his login ID and password.
  • The taxpayer navigates to Services > Returns > Returns Dashboard
  • Taxpayer must select financial year and tax period for which GSTR 1 needs to be filed and click SEARCH
  • All returns pertaining to the given tax period will be displayed as tiles
  • The taxpayer will select the GSTR 1 tile and click on PREPARE ONLINE or UPLOAD.
  • The taxpayer will enter (by using ADD INVOICE option) or upload all the invoices for the tax period.
  • After entering or uploading all the invoices and details in the various sections of the GSTR 1, taxpayer will click SUBMIT to validate the data.
  • Once the data is validated, taxpayer can click on FILE GSTR 1 using DSC or E-Sign (DSC is mandatory for companies, LLPs, and FLLPs)
  • A confirmation message will pop-up to confirm or cancel the filing with YES and NO options respectively. Upon clicking YES, GSTR 1 will be filed and Acknowledgement Reference Number (ARN) will be generated for the same.

For a detailed description along with screenshots, please refer to the User Manual.

25. What are the post-conditions for a taxpayer filing GSTR 1?

Post-conditions for a taxpayer filing GSTR 1 are:

a. ARN gets generated on successful submission of the Return.

b. An SMS and email is sent to the taxpayer on successful submission of Return.

c. Once the Return is submitted with digital or e-signature, the Return will be passed to:

    1. (i) The IT system of the CBEC (Central Tax Authority); and
    2. (ii) IT system of the concerned State.

d. All details from relevant Columns in GSTR 1 will auto populate the counterparty GSTR 2/2A, 4/4A and 6/6A.

26. Is there any late fee applicable on filing GSTR 1 after the due date? If yes, what are the charges?

Yes, a tax payer is charged a fee for late filing of GSTR 1. The late fee is auto calculated after the taxpayer has filed the GSTR 1 and not before that.

The late fee must be paid before filing the GSTR 3 otherwise it will be considered invalid.

Late fee for filing of GSTR 1 is based on the supplies of goods and/or services made by the taxpayer. As per the IGST/CGST/SGST Act, an amount of INR 100 per act per day is payable by the taxpayer.

27. Is there any exception to the rule that a normal taxpayer cannot file GSTR 1 before the end of the current tax period?

A normal taxpayer cannot file GSTR 1 before the end of the current tax period. However, following are the exceptions to this rule:

  1. Casual Taxpayers and Non-Resident Taxable Persons
  2. Cancellation of GSTIN of a normal taxpayer.

A taxpayer who has applied for cancellation of registration will be allowed to file GSTR 1 after confirming receipt of the application.

Introduction of Counterparty: High level flow of information from GSTR 1 to other returns

1. What is the flow of information from GSTR 1 to receiver taxpayer?

On filing of GSTR 1, B2B Supplies shall be auto populated in the GSTR 2/GSTR 4/GSTR 6 of the respective Receiver taxpayer(s). The flow of information from GSTR 1 to Receiver Taxpayers is as under:

Table in GSTR 1 Flow of information to Receiver Taxpayer on filing of GSTR 1

Table in GSTR1 Flow of information to Receiver Taxpayer on filing of GSTR 1
Table 5

Taxable outward supplies to a registered person

·         Table 4 of GSTR 2

·         Table 5 of GSTR 4

·         Table 4 of GSTR 6

·         Refund Application for UN Bodies

Table 5A

Amendments to details of outward supplies of earlier tax periods (including post-supply discounts)

·         Table 4A of GSTR 2

·         Table 5A of GSTR 4

·         Table 4A of GSTR 6

·         Refund Application for UN Bodies

Table 6 ·         Return for Government Department
Table 6A ·         Return for Government Department
Table 8

Details of credit/debit notes.

Debit/credit note may not be involved in transactions with Government Departments and UN bodies.

·         Table 7 of GSTR 2

·         Table 9 of GSTR 4

·         Table 5 of GSTR 6

·         Return for Government Department

·         Refund Application for UN Bodies

Table 8A

Amendment to credit/debit notes.

·         Table 7A of GSTR 2

·         Table 9A of GSTR 4

·         Table 5A of GSTR 6

·         Return for Government Department

·         Refund Application for UN Bodies

However, the View rights will be available on real time basis to the receiver taxpayer.

2. Will the details entered in GSTR 1 be auto populated in Returns of Government Entities and Refund Applications of UN bodies?

Yes, the information submitted in GSTR 1 will be auto-populated in Returns of Government Entities and Refund Applications of UN Bodies. The flow of Information from Return of Government Entities and Refund Application of UN Bodies to GSTR 1 will be similar to the flow prescribed from GSTR 2 to GSTR 1.

3. What is the cut-off date for entry of invoices in GSTR 1 in case a normal taxpayer’s GSTIN is cancelled?

In case of a cancelled GSTIN, entries in GSTR 1 filed after the date of cancellation can be made only for invoices/documents dated prior to the date of cancellation. Further, rectifications will be allowed only in respect of original invoices/documents issued prior to the date of cancellation.

The effective date of cancellation will be the date mentioned in the cancellation order.

4. If the Supplier files GSTR 1 of month M after filing of GSTR 2 by the Receiver for the same month, what actions can be taken by the Supplier?

If the Supplier files GSTR 1 after the receiver has filed GSTR 2 (for the same tax period), the supplier can accept/modify/reject the invoices uploaded by the Receiver.

Acceptance/modification/rejection by the Supplier of invoices uploaded by the Receiver in their GSTR 2 will form part of GSTR 3 of the Supplier’s M tax period if such acceptance/modification/rejection is done and the GSTR 1 is filed successfully before the creation of the GSTR 3 of M Tax Period by the Supplier.

The system will create flags to differentiate between the following sets of invoices:

  1. Invoices existing in signed GSTR 1
  2. Invoice appended after filing of GSTR 1

Invoice appended after filing of GSTR 1

Example: A supplier files GSTR 1 for July on 10th of August. The receiver uploads the details of the missing invoices and files GSTR 2 on 15th August. The invoice data will go back to the supplier for acceptance/modification/rejection.

If the invoice data is accepted/modified before creating GSTR 3, it will be added to the GSTR 3 of the supplier for July.

  • New invoices accepted will be added in Table 5.
  • Invoice of INR 100 is added by the receiver and the supplier modifies it to INR 120, then INR 120 will be added in Table 5.
  • If the receiver has modified an invoice from INR 100 to INR 120 and the invoice is accepted by the supplier, then the original invoice of INR 100 in Table No. 5 will be replaced with INR 120.

The Tax Liability Register will be updated on Creation of GSTR 3.

If there is no action by the supplier taxpayer on the additions/modifications made by receiver taxpayer in the return till due date of filing GSTR 3, the invoices will be carried forward to the next tax period(s) until the end of the financial year.

5. If GSTR 1 for month M is not filed till 10th of the succeeding month i.e. M+1 by the Supplier taxpayer, how can the Receiver taxpayer claim the tax credit? What action should be taken by the receiver?

In such a scenario, to avail provisional credit, the receiver can download the outward supplies data of the month M uploaded by the supplier till the 10th of the succeeding month (M +1) or use their own records to file GSTR 2. Receiver taxpayer is required to fill relevant invoice details in their GSTR 2 by using the ADD MISSING INVOICE option.

It is important to note that the supplier taxpayer must accept the added invoices before the end of the succeeding tax period otherwise the provisional ITC availed by receiver taxpayer will be reversed and interest will be levied on the same.

Introduction to amendment of invoices and mismatch reports

1. Can a taxpayer rectify an error or omission once the GSTR 1 is filed?

Yes, a taxpayer can rectify an error or omission that remained unmatched in the tax period until such time as it is not accepted or added by the receiver taxpayer. Whenever such an error or omission is noticed, the supplier taxpayer can modify the existing erroneous invoice or add a new invoice and pay the tax along with applicable interest by 30th September of the succeeding financial year or filing of the annual return, whichever is earlier.

2. Can a supplier taxpayer make any amendments to an invoice that has been accepted by the counterparty receiver taxpayer in their GSTR 2?

No, any invoice once filed by a supplier taxpayer in GSTR 1 and accepted by the counterparty receiver taxpayer in their GSTR 2 cannot be amended.

3. I entered the incorrect GSTIN while uploading the invoices in GSTR 1 and filed the same. How can I correct the error?

There are two possible scenarios in this case.

a. Normal Scenario: The receiver rejects the invoice(s), following which you will get the intimation for the same and you can then amend the GSTIN of the invoice.

b. Exceptional Scenario: If the receiver accepts the invoice(s), you will have to report the issue to your Jurisdictional Officer as availing credit on goods and/or services not received and/or availed respectively by a receiver taxpayer is a violation of GST law.

4. What measures have been taken to check the duplication of Input Tax Credit claims?

The duplication check shall be from the supplier’s end using a combination of GSTIN, Invoice Number, and Financial Year.

Whenever an invoice is uploaded by a supplier or receiver taxpayer and is acted on by the counterparty, the system will display an error message if the counterparty attempts to upload the same invoice again.

5. What steps will be taken in case the inter-state transactions are mentioned as intra-state transactions?

In case, the inter-state transactions are mentioned as intra-state transactions, the taxpayer is required to claim refund for the incorrect payment of IGST and is required to pay CGST/SGST separately. Interest will be charged on the additional tax amount only, if applicable.

6. Once SGST portion of IGST is distributed to the state based on the old Place of Supply (PoS), what will happen in case of change in PoS in B2C Supplies?

SGST portion of IGST has to be reversed and distributed to the new state based on the revised PoS. Restrictions of any unjust enrichment would not be applicable in such cases.

7. Under what circumstances can the details of inward supplies of month M in GSTR 2 be filed before the 10th day of month M+1? OR If all my suppliers have filed their respective GSTR 1s, can I file my GSTR 2 before the 10th day of month M+1 where M is the tax period?

GSTR 2 cannot be filed before the 11th day of month M+1.

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Category : Goods and Services Tax (3342)
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Tags : FAQs (245) goods and services tax (1899) GST (1483) GST FAQs (49)

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