Name : Aditya

Batch no. : 17
Roll no. : 18
Subject : GSTR-1 Filing
GSTR-1 Filing: A Comprehensive
Guide

Overview, Importance, and Filing

Process
 Introduction to GSTR-1
Form GSTR-1 is a monthly/quarterly Statement
of Outward Supplies to be furnished by all normal
and casual registered taxpayers making outward
supplies of goods and services or both and
contains details of outward supplies of goods and
services.
Objective and Importance of GSTR-
1Filing

GSTR-1 filing helps the government correctly allocate

tax revenue to the appropriate states, especially by
identifying and correcting errors related to integrated
taxes in GSTR-3B.Input Tax

GSTR-1 forms the basis for recipients to claim input tax

credit. Accurate and timely reconciliation of GSTR-1 and
GSTR-3B ensures that recipients can claim legitimate
ITC, avoiding potential disputes or issues later.
 Who Should File GSTR-1?
Every registered taxable person, other than an
input service distributor/ composition taxpayer/
persons liable to deduct tax u/s 51 / persons
liable to collect tax u/s 52 is required to file Form
GSTR-1, the details of outward supplies of goods
and/or services during a tax period,
electronically on the GST Portal.
 Filing Frequency of GSTR-1
Monthly Filing Quarterly Filing
Taxpayers with an annual
Taxpayers with an annual aggregate turnover of up to
aggregate turnover of more INR 5 crore in the previous
than INR 5 crore in the financial year can opt for
previous financial year are quarterly filing under the
required to file GSTR-1 QRMP (Quarterly Return
monthly. These taxpayers Monthly Payment) scheme.
need to submit their returns Quarterly filers submit their
by the 11th of the following GSTR-1 by the 13th of the
month. month following each
quarter.
 Contents of GSTR-1
B2B Transactions: Includes details of all sales made to registered
businesses (B2B) within India.
B2C Large (Inter-State Supplies Above INR 2.5 Lakh):Covers inter-state
sales to unregistered buyers, where each transaction exceeds INR 2.5
lakh.
B2C Small (Other Sales to Unregistered Persons):Captures details of
smaller intra-state and inter-state sales to unregistered consumers.
Advances Received and Adjusted:Tracks advances received for
supplies in a tax period and any adjustments.
Exports:Details of exports and deemed exports, including invoice and
shipping details.
Credit/Debit Notes:Information on credit or debit notes issued against
previous sales, along with original invoice reference.
B2B and B2C Supply Details
 Reporting HSN
Code
In GSTR-1, businesses are required to categorize goods and
services using HSN (Harmonized System of Nomenclature)
codes to ensure standardized classification.
Turnover-Based Requirement:
1. Above INR 5 Crore: Must report 6-digit HSN codes for all
goods and services.
2. Up to INR 5 Crore: Must report 4-digit HSN codes for B2B

supplies; B2C is optional.

HSN codes ensure accurate tax rates, simplify compliance,
and support data analysis, providing transparency and
aligning with international trade standards.
 Advances Received and
Adjustment
In GSTR-1, taxpayers must report any advances received for
goods or services if the tax invoice hasn’t yet been issued.

Reporting Requirements:

1. Report the amount of advance received and calculate the

applicable tax (CGST, SGST/UTGST, or IGST).
2. Adjustments are required in subsequent GSTR-1 filings when
the final invoice is issued, deducting the advance amount from
the taxable value.
 Filing Nil Returns
A Nil GSTR-1 return is required if there are no outward supplies
(sales) or taxable transactions for a given tax period. Filing a Nil
return is mandatory even with no business activity to ensure
compliance and avoid penalties.
How to File:
1. Log in to the GST portal, select the relevant tax period, and
choose the Nil filing option in GSTR-1.
2. Confirm and submit to complete the filing.
 Late Fees And Penalties
Late filing or non-filing of GSTR-1 attracts late fees and potential
penalties under GST:
Late Fees:
1. A late fee of INR 50 per day (INR 25 each for CGST and SGST) is
applicable for delayed filing.
2. If the return is nil, the late fee is reduced to INR 20 per day (INR
10 each for CGST and SGST).
3. The maximum late fee is capped at INR 10,000 per return
period.
 Auto Population in GSTR-2A
and GSTR-3B
Data from GSTR-1 auto-populates into GSTR-2A and GSTR-3B to
streamline Input Tax Credit (ITC) reconciliation for buyers. When a
supplier files GSTR-1, details of outward supplies automatically
appear in the buyer’s GSTR-2A as well as in GSTR-3B, showing
eligible ITC.
This auto-population enables buyers to verify and claim accurate
ITC in GSTR-3B, ensuring compliance and reducing discrepancies
between suppliers’ and recipients’ records.
 Step-by-Step Filing Process
Here’s a step-by-step guide to filing GSTR-1 on the GST
portal:
Step 1: Log In
•Go to the GST portal and log in with your credentials.
Step 2: Select the Return Filing Period
•On the dashboard, choose Services > Returns > Returns
Dashboard.
•Select the relevant tax period (month/quarter) for which you’re
filing GSTR-1.
Step 3: Open GSTR-1 Form
•Click on Prepare Online under GSTR-1 for the selected period.
Step 4: Enter Details in Each Section

•B2B Supplies
•B2C Large Supplies.
•B2C Small Supplies
•Credit/Debit Notes
•Advances Received and Adjusted
•Exports and SEZ Supplies
•HSN Summary
Step 5: Verify and Save
•After completing each section, save the details.
•Use the Preview option to review all entries before submission.
Step 6: Submit GSTR-1

•Once reviewed, click on Submit to lock in the details for the period.
Step-7: File with DSC or EVC

•Click on File Return, then choose either Digital Signature Certificate

(DSC) or Electronic Verification Code (EVC) to authenticate.
•Upon successful authentication, a confirmation message will
appear, and an Acknowledgement Reference Number (ARN) will be
generated.
Step 8: Download Filed GSTR-1
•You can download the filed return from the Returns dashboard for
record-keeping.
 Using the GSTR-1 Offline Tool
The GSTR-1 Offline Tool lets taxpayers prepare and upload returns
without constant internet access, ideal for businesses with high
transaction volumes or limited connectivity.
When to Use:

•High Volume Transactions: Efficiently manages bulk data.

•Unreliable Internet: Prepare data offline, then upload briefly online.
•Data Verification: Review and verify data before portal upload.
Benefits:

•Handles Bulk Data: Simplifies managing thousands of entries.

•User-Friendly: Allows offline entry and error correction.
•Ensures Accuracy: Validates data for compliance before upload.
 Reconciliation of GSTR-1 With
Accounting Records
Reconciling GSTR-1 with accounting records is crucial for
maintaining accurate GST reporting and avoiding mismatches.
Importance

1. Prevents Discrepancies: Ensures sales reported in GSTR-1 match

the actual sales in books, avoiding penalties and ITC mismatches.
2. Enhances Compliance: Accurate records reduce audit risks and

support a smooth ITC claim process

Frequency
Reconcile monthly (for monthly filers) or quarterly (for quarterly
filers) before submitting GSTR-1.
 Recent Updates and
Amendments in GSTR-1
Recent updates by the GST Council have introduced changes to
GSTR-1 filing to streamline compliance and improve accuracy:
1. Mandatory E-Invoicing: Businesses with an annual turnover

above INR 5 crore are now required to generate e-invoices, which

auto-populate into GSTR-1.
2. Changes in HSN Code Reporting: HSN code reporting

requirements have been tightened, with taxpayers now required

to report 6-digit HSN codes for supplies if turnover exceeds INR 5
crore, enhancing product/service classification accuracy.
3. Quarterly Return Filing with Monthly Payment (QRMP) Scheme:

4. Real-Time Data Sharing with GSTR-2B:

Thank
You!