GST plays an important role in the financial and taxation system to ensure clarity, accountability, and smooth procedures of the business and economy. There are GST returns (GSTR) to make the functionality of GST smoother and clear that are furnished and filed online via distinct forms.
In the GST system of India, GSTR-1 is one such important form. The same is similar to the detailed report of the turnover (outward supplies) that a registered assessee (businesses) ought to provide before the government on a monthly or quarterly basis (established on the annual turnover).
GSTR-1 in easier terms is said to be the record of all the sales transactions performed via a business at the time of the particular duration. The same comprises the information of your customers, the amount of money you charged them, the collected GST amount from them, and the place of supply.
In tracking the business’s sales, GSTR-1 assists the government by furnishing detailed information as to what was sold to whom at what cost and how much tax has been collected on that. Through Form GSTR-1 on the GSTN portal, the information is being submitted which is utilised further to validate the ITC to be claimed via the receiver. It indeed supports monitoring the movement of goods and services in the supply chain, ensuring clarity and compliance with the GST norms.
Understanding GSTR1 its meaning, format, filing procedures, due date, etc.
What does the term GSTR-1 signify?
GSTR 1 is a GST return that all the registered assesses under the regular scheme need to submit on a monthly or quarterly basis (as opted based on the turnover).
For businesses timely filing of GSTR-1 stated the compliance, facilitating the claims of the correct ITC to the receiver, emphasizing the clear transactions, and securing against the penalties. It indeed supports reconciling the information with the suppliers and infusing trust in inter-business dealings.
GSTR-1 supports revenue collection acts against fraud, and serves as a compass for tax policy decisions for the government. The same comprehensive source of data authorizes the Government to fine-tune taxation strategies, maintain the virtue of the GST system, and ensure clarity in taxation.
What is the GSTR 1 Format?
The GSTR-1 format is important for businesses to fulfil their compliance needs and prevent late fees, interest, and penalties. The same consists of distinct sections and fields in which the businesses should furnish the information. The GSTR-1 format consists of 15 tables, each directing the supplier to input information for the goods or the services they have supplied in a specific month (quarter in the case opted for QRMP). It is essential to learn that not all of these tables are obligatory for every supplier.
The suppliers are mandated to fill the tables that are related to certain aspects of their business and the kind of supplies they propose.
Eligibility for Filing GSTR-1
Any individual or business enrolled in GST as a regular assessee should file a GSTR-1 return. If no outward transaction is there then at the time of the particular duration. The taxpayer should face the penalties if losses to furnish the return. Those GSTR 1 filers who do not have furnished their returns since July 2020 could use an SMS-based utility to perform the same.
From the obligation to file the GSTR 1 the below-stated categories of GST-registered individuals are waived, it has been furnished on the GST portal-
Assesses who are liable for collecting tax collected at source (TCS) u/s 52 of CGST Act, 2017: Section 52 demands Electronic Commerce Operators (ECOs) to collect tax on specific supplies made through their platform.
Composition Dealers: For an exemption from GSTR-1 filing, businesses with a yearly turnover of up to Rs 1.5 crores are qualified, given that they choose the composition scheme.
Input Service Distributors: As per the GST regulations it directed towards the business office or facility that obtains tax invoices but assigns the tax credit to its branch offices.
Non-resident taxable persons: The same is for the person who is in the occasional transactions along with the supply of goods or services, either as the principal party, agent, or in any other role, though does not have a permanent business location or residence in India.
Service providers engaged in Online Information and Database Access or Retrieval services (OIDAR): It directs businesses who are responsible for payment, as shown in Section 14 of the Integrated Goods and Services Tax (IGST) Act, 2017.
Taxpayers who are accountable for deducting Tax Deducted at Source (TDS) under Section 51 of CGST Act, 2017: To deduct TDS, Section 51 permits the subsequent category:
A department or establishment of State Government or Central Government
Local Authority
Governmental Agencies (Such persons or categories of persons as may be announced by the Government on the suggestion of the council)
Know the GSTR-1 due date For Regular Taxpayers
The GSTR 1 deadline or Late date of GSTR1 filing depends on the total sales volume of the taxpayer. Via the QRMP program, businesses having a turnover of up to Rs 5 crore could provide quarterly returns. GSTR-1 due date for each month aligns with the 13th day of the following quarter.
The assesses who do not opt for the QRMP scheme or surpass the Rs 5 crore turnover limit should provide their returns every month with the GSTR 1 deadline monthly set for the 11th day of the forthcoming month.
Who is required to File GSTR 1?
For registered dealers, GSTR 1 filing is mandatory whatever their monthly transaction is. Being a registered seller mandates GSTR 1 filing despite when there were no recorded sales in the earlier financial year.
A GSTR 1 filing should be incurred by every GST-registered person irrespective of any conducted transactions in the said duration.
If the annual revenue of the business in the previous or existing year exceeds Rs 1.50 crore then every month they ought to submit GSTR-1. The 11th day of the subsequent month is the due date for the current month’s GSTR-1 filing with a turnover less than Rs.1.5 Crore have the option to file GSTR-1 quarterly.
From GSTR 1 filing certain categories of individuals or businesses are exempted.
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Input Service Distributor (ISD)**: Under the GST rules it is related to the office or business development that obtains tax invoices but distributes the tax credit before its branch offices.
Composition Dealer: with an annual turnover of up to Rs.1.5 Crore the businesses are exempted from GSTR 1 filing, given that they can choose for the composition scheme.
Online Supplier: Online information, database access, or retrieval services providers are waived from the duty to file GSTR-1.
Non-Resident Taxable Person: Those who are counted under the non-resident taxable individuals are not in the obligation to file the GSTR-1 for their businesses.
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Taxpayer obligated for TCS or TDS**: Taxpayers accountable for collecting Tax Collected at Source (TCS) or deducting Tax Deducted at Source (TDS) are correspondingly waived from the same condition.
What is the method to View the status of GSTR 1 Filing?
An individual could check the status of your GSTR 1 filing on the GSTN portal by complying with the below-stated steps-
Step 1: Log in to the GST portal via your login credentials.
Step 2: Hover the mouse pointer over the “Services” menu, and a dropdown menu will occur.
Step 3: Tap on “Returns.”
Step 4: Tap on “Track Return Status.”
Step 5: Input the ARN (Acknowledgement Reference Number) into the set field and tap “Search”. Or, use the “Return Filing Period” for searching.
Step 6: A table will emerge, showing comprehensive details of your GSTR 1 returns.
Step 7: You can see the return status in the “Status” column of the table.
According to the GST FAQ, there are four statuses for GSTR 1:
To Be Filed: Return due but not filed
Submitted But Not Filed: Return Validated but filing is pending.
Filed Valid: Return Filed
Filed Invalid: Return Filed but tax not paid or short paid
GSTR-1 Late Fee and Penalty
When a person fails to submit the GSTR 1 return due date under the said then he or she shall need to fulfil the GSTR 1 late fees at the stated rates. Also for the late GSTR 1 filing, an 18% yearly interest rate shall be levied on the due tax amount.
The below table furnishes a complete breakdown of the late fees you might incur, possibly on your turnover.
