GSTR-1 is a return that is mandatory for every certified trader to file. This return contains details of outward supplies by that trader. The term ‘outward supply’ has been defined in the Central Goods and Services Tax Act, 2017. It implies all sales of either goods or services or of both, by methods of,
“…sale, transfer, barter, exchange, license, rental, lease or disposal or any other mode…”;
Depending on the agreement entered or promised to be entered by the taxable person in due course of his business transaction.
Thus, in simple terms the GSTR-1 return would include details of all such transaction in which a supply of goods/services/both, has taken place by any of the above-mentioned means. Here the ‘taxable person’ is the trader himself. He is the supplier, therefore, the point of initiation of the transaction. He will have to, in this category of return, give details of the good/services of the supply transaction, and also, the details of the person who is in receipt of the supply. Thus, this becomes the proof of the ‘inward supply’ of the receiver of the supply. Therefore, this particular return is often referred to as the base document which holds the foundation of the compliance to GST in India. The supply details include both within the state and outside the state sale transactions. Other required details include:
- Other than the registered persons, details of the outward supplies made to end customers.
- Compulsorily those supplies of which the value exceeds 2.5 lacs.
- All outward supplies valued below 2.5 lacs made to the end customers totaled together.
- Credit notes details.
- Debit note details.
- Amendments made to GST invoice.
- Changes made to the earlier done outward supplies.
- Details of Non-GST supplies.
- Details of Nil- Rated Supplies.
- Details of exempted supplies.
- Export sales details along with the HSN Code of the goods supplied.
- Details of paid tax and the remaining liabilities that have arisen from the advance receipts.
The GSTR-1 is a return which is either filled monthly or quarterly, depending on the turnover of the trader. If the trader has sales up to 1.5 crores, he shall have to file his returns quarterly. Whereas, if his sales are more than 1.5 crores it shall be mandatory for him to file returns every month. This rule applies even when there are no transactions made in a particular month.
Recently, the deadline for filling this return has been extended by the government. Therefore, the deadline to file the returns when filled on a monthly basis is:
- For the month of April - 31st May;
- For the month of May -10th June; and,
- For the month of June -10th July.
For when the returns are to be filled quarterly, for the term of April-June, is July 31st.
It is also important to know who are and are not to file this particular return. It has already been mentioned that all registered traders have to file it compulsorily. Although there are some registered persons who are exempted from the GSTR-1 returns. These include: Non- resident taxable person, taxpayers who are liable to collect TCS and deduct TDS, OIDR Suppliers, Input Supply Distributors, dealers registered under the Composition scheme or small taxpayers, Input Service Distributors.
Another question that comes to mind here is what is to be done in case there is any error in filling the return. The errors generally made in filling out the details are rectifiable at the point when the receiver of the supplies receives an invoice of all details. If, due to any reasons, the errors have been rectified at that point, the next option is to report the error to the Judicial Authority. They can, if are convinced of the existence of the error, can rectify the same.
A system has been designed which asks for the details of the taxable registered person like the GSTIN, unique combination of the financial year and the invoice, which rectifies the error of double filling, if made.
An error in the invoice that has been uploaded with the return can be rectified only till the point the receiver has not accepted the erroneous invoice. If the receiver has accepted the wrong document, no changes can be made. At this point, the only option is to file a supplementary invoice or credit note to rectify the previous document.
On errors in transactions which are inter-state category and have been filled as intra-state categories, the registered payer who has made the error will have to firstly pay the IGST amount to the ministry and secondly apply to claim back the excess amount (CGST/SGST).
To know how is GSTR 1 return filed, Click here.