GSTR-1 refers to a particular kind of return for outward supplies, which should be filed by each registered dealer on a monthly or quarterly basis. It necessarily indicates the entire sales transactions of a business. This return is segregated into 13 sections which are listed below:
- The GSTIN of the business you are engaged in (you can also use a provisional Id as GSTIN, if you do not have one)
- The exact legal name of the business
- The aggregate turnover achieved in the last financial year
- The taxable supplies/sales offered to registered individuals including UIN-holders
- Taxable sales/supplies offered to unregistered individuals who stay outside their base state and that exceeding Rs.2.5 Lakhs (which implies inter-state sales to unregistered individuals, which exceeds Rs.2.5 Lakhs)
- Export sales which is deemed and zero-rated
- Sales offered to unregistered individuals which is not included in the 5th point
- The entire sales which is carried out via an e-commerce operator
- The inter-state sales made to unregistered individuals up to an amount of Rs.2.5 Lakhs
- Exempted, nil-rated, and non-GST supplies – those which are exempted and not included in the above points
- Amendments made in taxable supplies/sales to registered businesses in the preceding months
- Amendments made in taxable supplies/sales to unregistered businesses in the past months
- Information regarding advances adjusted or received during a month, from the clients
- The HSN summary for outward supplies
- The documents which are issued during a month, which contain information on the invoice serial numbers, debit notes, and credit notes for the month.
What is the Due Date for Filing GSTR-1?
The due date for filing GSTR-1 depends on the turnover of the business. Those businesses which have sales up to Rs.1.5 Crore would have to file quarterly returns whereas, other taxpayers that have sales more than Rs.1.5 Crore would have to file monthly returns which will be 11th of every month.
Who All Are Required to File GSTR-1?
Each registered person is needed to file GSTR-1, regardless of whether there are any transactions carried out during a particular month or not.
The list of registered individuals who are exempted from filing the return are given below:
- Composition Dealers (The composition scheme is an easy scheme under GST for small-time taxpayers, in which they can avoid complicated GST formalities and remit GST for a fixed turnover rate. This scheme is applicable for those taxpayers that have a turnover less than Rs.1.0 Crore (as per a notification of CBIC, the threshold limit has been increased from Rs.1.0 Crore to Rs.1.5 Crore))
- Input Service Distributors (An Input Service Distributor or ISD refers to a business for which invoices are issued for the services used by its branches. The tax paid is disbursed to these branches on a proportional basis by means of an ISD invoice. Further, though these branches can have dissimilar GSTINs, they need to have the same PAN as the ISD)
- Those who are suppliers of Online Information and Database Access or Retrieval (OIDAR) services and have to pay tax by themselves according to Section 14 of the IGST Act
- The taxpayers who are accountable to collect TCS (The TCS or the Tax Collected at Source refers to the tax owed by a seller which he collects from a buyer during the time of sale. There are certain organizations or people that are classified as sellers for TCS such as the State and Central governments, local authorities, statutory corporation or authority, the companies registered under the Companies Act, the partnership firms, etc. Similarly, there are a few buyers that are liable to pay TCS to the sellers like the Central and State governments, public sector companies, sports and social clubs, etc.
- The taxpayers who are accountable to deduct TDS (The TDS or Tax Deducted at Source is a method to levy tax based upon a particular percentage on the amount, which should be paid by the receiver on services or goods. The tax which is collected thus would be taken as revenue by the government. The government agencies, local authorities, the departments or establishments belonging to the State or Central government, and some categories of people as per the notification of the government are liable in deducting TDS under the GST Law. Further, according to a recent notification, a board, or an authority, or any other body which is set up by the government, or a State Legislature, or Parliament, of which 51% equity is owned by the government are supposed to deduct TDS. Others who are eligible to deduct TDS include, a society which is registered under the Societies Registration Act, 1860 and has been established by a local authority or any State or Central government, and the public sector undertakings.
- A non-resident taxable person (As per the GST Law, a non-resident taxable person refers to any individual who performs transactions which include the distribution of services or goods, or both, either as an agent or a principal, or in any other capacity, but do not have a residence or permanent place of business in India).
Is it Possible to Revise GSTR-1?
Once a return is filed, it is unable to revise the same. If there are any mistakes made in the filing of the return, it could be corrected in the next monthly or quarterly return. For example, if there is a mistake made in the September GSTR-1, you are able to rectify it in the October GSTR-1.
Consequences of Late Fee and Penalty
There is a late fee imposed if you do not file GSTR-1 on time, which is Rs.200 for each day of delay (Rs.100 each according to CGST and SGST Act. The late fee is charged from the date succeeding the due date. As per a recent update, for nil returns, the late fee has been reduced to Rs.50 and Rs.20 for each day.
To sum it up, it is essential to know the basics of the GSTR-1 return before filing the same to avoid any mistakes. This blog gives an outline of what GSTR-1 is all about.