I was receiving requests from many people to address on this topic, stating what is significance of this new form, what is this amendment all about etc, hence I thought to write a brief article on this topic
Before I start first of all let’s discuss what is GST all about in short
As we all know, Goods and Services Tax which is a type of indirect tax is imposed on all supplies of goods and services in India. Since it came into force on July 1, 2017, the GST has revolutionized Indian taxation by replacing multiple taxes charged by the central and state governments leading to a cascading effect.
To achieve accurate reporting of taxes, different types and compliance requirements have been introduced as this GST system that keeps on changing. One such change or insertion made by the government is Form GSTR-1A which allows taxpayers to modify the details of outward supplies or we can say sales data previously filed in GSTR-1.
In this article, let’s discuss its purpose, filing requirements, and implications for taxpayers in detail
Introduction to GSTR-1A
GSTR-1A is a form that has been introduced as per the GST act which allows taxpayers to amend and modify the details of outward supplies or we can say sales which have been furnished in GSTR-1. It is mainly required for correcting errors or adding details which were missed or omitted during filing of GSTR-1 and is related to outward supplies and came to the notice of supplier after filing GSTR-1 but before filing GSTR-3B for the same tax period.
Notifications and Legal aspect of GSTR-1A
The legal framework for GSTR-1A is introduced as per the rules made under Central Goods and Services Tax act, 2017, which governs the various procedures for filing GST returns. The Central Board of Indirect Taxes and Customs, through Notification No. 12/2024 – Central Tax issued on July 10, 2024, have introduced amendments to these rules by incorporating GSTR-1A into the existing framework of GST.
What is the amendment in Rule 59, Central Goods and Services Tax Rules, 2017 about?
The rule 59 deals with “the form and manner of furnishing details of outward supplies”. This rule was amended to incorporate the provisions that were relevant to GSTR-1A which were as follows:
- Proviso after sub-rule (1): Which states that the taxpayers may amend or furnish additional details of outward supplies in GSTR-1A after filing GSTR-1 but before filing GSTR-3B for the same tax period, that means discretion given to taxpayers in this matter.
- Insertion of sub-rule (4A): Which states that form GSTR-1A is introduced to allow the taxpayers to amend or add invoice-wise details of inter-State and intra-State supplies made to registered persons, inter-State supplies with invoice value exceeding one lakh rupees made to unregistered persons, consolidated details of intra-State supplies made to unregistered persons, and details of debit and credit notes issued during the month.
What is amendment in Sub-Rule 7 of Rule 60 about?
Sub-rule (7) of Rule 60 was amended to include a new clause which permits the inclusion of additional details or amendments in outward supplies furnished by a supplier in form GSTR-1A, which provided these changes are made between the due date of GSTR-1 for the previous tax period and the due date of GSTR-1 for the current tax period.
What is the form GSTR-1A all about?
As discussed, GSTR-1A is a supplementary return which has been introduced to rectify any errors or omissions in the details of outward supplies previously reported in GSTR-1. It provides taxpayers with an opportunity to ensure that their tax filings are accurate before submitting GSTR-3B for the same tax period.
Who is required to File GSTR-1A?
GSTR-1A can be filed by any registered taxpayer who finds out the errors or omissions after filing their GSTR-1. It is especially useful for those who need to correct records relating to supply of goods or services or those who wish to add new records that were missed during the initial filing of GSTR-1.
When Can GSTR-1A be Filed?
As I discussed the same earlier, let’s analyse the same with examples:
Mohit is a monthly filer of GST return, he needs to revise his GSTR-1 dueto some error, now he can file GSTR-1A from the later of the due date of filing GSTR-1 that is 11th of the following month or the actual date of filing GSTR-1, until the filing of GSTR-3B for the same tax period.
On other hand if he is a Quarterly filer then he can file the same from the later of the due date of filing the quarterly GSTR-1 i.e. 13th of the month following the end of the quarter or the actual date of filing GSTR-1, until the filing of GSTR-3B for the same quarter.
What are the Key Features of GSTR-1A?
GSTR-1A offers several key features designed to enhance the accuracy of GST filings like there is no specific due date for filing GSTR-1A. It must be filed before GSTR-3B for the same tax period, Filing GSTR-1A is not mandatory but is an optional facility provided to taxpayers to ensure accurate tax records, GSTR-1A can be filed online or through a GST Suvidha Provider (GSP), but option to file a Nil return for GSTR-1A is not available.
But the thing is, only those records which are related to the current tax period can be changed by filing GSTR-1A. Any changes to records relating to the previous tax periods must be made by filing subsequent GSTR-1 only.
What is the impact on GSTR-3B or 2B?
In case any records are saved in GSTR-1A, but not filed before GSTR-3B, the taxpayer will face errors when he try to file GSTR-3B. These saved records should be either deleted, resected, or filed in GSTR-1A before making him eligible to file and process with his GSTR-3B.
GSTR-2B is the auto-drafted input tax credit statement that is generated for the recipient, but it is also impacted if taxpayer files GSTR-1A, in case any amendments or additions are made through GSTR-1A that will also get reflected in the GSTR-2B of the recipient for the subsequent tax period.
What about Debit and Credit Notes?
Taxpayers also have the option to add the details of debit and credit notes in the dedicated tables specified in form GSTR-1A, but the changes to the GSTIN of the recipient is not allowed to be made by filing form GSTR-1A. Such changes can only be made in the GSTR-1 of subsequent periods.
What is the Filing Process of GSTR-1A?
Here is a step-by-step process in filing form GSTR-1A correctly:
Step 1: Accessing the GSTR-1A Form
- Log in to the GST portal using your user ID and password
- Go to Services à Returns à Returns Dashboard
- Select the financial year and the return filing period for which you want to amend the details
- Click on “Prepare Online” under GSTR-1A or you have option to file it via utility too
Step 2: Viewing and Amending Details
- The form displays the details from the previously filed GSTR-1 for the selected period. You can edit the sections where you wish to make amendments
- Amend the required records, like invoice number, date, value, tax amount, etc
- You can’t amend GST number of recipient
Step 3: Add records which you have missed
- If there are any records which were omitted by you, you can add these new entries in the appropriate sections of the return
- It is advisable to double-check the added records to ensure accuracy
Step 4: Saving Changes
- After making the necessary amendments and additions, save the changes.
- Review the saved changes
Conclusion
GSTR-1A is a significant addition to the GST framework, allowing taxpayers to adjust or insert their previously submitted GSTR-1 before completing GSTR-3B. This form ensures that the outward supply records are accurate and further prevents mistakes and compliance challenges in future when filing GSTR-3B. The reliability of GST filings increases with taxpayers given room to rectify errors and make omissions in GSTR-1A, thereby supporting the overall goal of transparent and efficient tax reporting.
Businesses need an insight into GSTR-1A’s complexities ranging from its legal footing all through to the detailed filing process in order for them to fully exploit it. The effectiveness of utilizing this facility depends on whether or not businesses find it optional to file a GSTR-1A can lead to more accurate tax reporting, reduce discrepancies, and ensure better GST compliance. Therefore, people need to seek advice from their GST advisors or get guidance from the GST portal regarding how they can use accurately complete their tax returns using GSTR 1A forms.
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