ALL ABOUT GSTR1

Basics of GSTR -1

GSTR 1 is a monthly 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.

• Every registered taxable person, is required to file GSTR 1, the details of outward supplies of goods and/or services during a tax period, electronically on the GST Portal.

• GSTR 1 needs to be filed even if there is no business activity (Nil Return) in the tax period.

• GSTR 1 can be prepared using the following modes through:

 Online entry on the GST Portal

 Uploading of invoice and other GSTR 1 data using Returns Offline Tool

 Using third party application of Application Software Provider (ASPs) through GST Suvidha Providers (GSPs)

Information to be given in GSTR 1

Invoice level details of supplies to registered persons including those having UIN

 Invoice level details of Inter- state supplies of invoice value greater than equal to INR 2,50,000 to unregistered persons (consumers)

 Details of Credit/Debit Notes issued by the supplier against invoices

 Details of export of goods and services including deemed exports(SEZ)

 Summarised state level details of supplies to unregistered persons

(consumers)

 Summary Details of Advances received in relation to future supply and their adjustment

 Details of any amendments effected to the reported information for either of the above categories.

 Nil- rated, exempted, and non-GST supplies

 HSN/SAC wise summary of outward supplies

Not required to file GSTR 1

The following taxpayers are not required to file GSTR 1:

 Taxpayers under the Composition Scheme (Return to be filled by them in GSTR 4)

 Non-resident foreign tax payers (Return to be filled by them in GSTR 5)

 Online information database and access retrieval service provider (Return to be filled by them in GSTR 5A)

 Input Service Distributors (ISD) (Return to be filled by them in GSTR-6)

 Tax Deducted at Source (TDS) deductors (Return to be filled by them in GSTR 7)

 E-commerce operators deducting TCS (Return to be filled by them in GSTR 8)

Pre-requisites for filing GSTR 1 are:

• The taxpayer should be a registered taxpayer and should have an active GSTIN during the tax period for which GSTR 1 has to be furnished.

• The taxpayer should have valid login credentials (i.e., User ID and password) to login into GST Portal.

• The taxpayer should have an active and non-expired/ revoked digital signature (DSC), in case the digital signature is mandatory

 DSC should be Class II or Class III, PAN-based DSC

 The DSC must not be expired

 The DSC must be registered on the GST Portal

 EM Signer version 2.6 must be installed on the computer

 The DSC Dongle must be connected to the computer

In case taxpayer wants to use EVC, they must have access to the registered mobile number of the Primary Authorized Signatory

• DSC is mandatory in case of all Public & Private Limited

Companies, Limited Liability Partnerships (LLPs), and

Foreign Limited Liability Partnerships (FLLPs).

Note : A tax payer needs to electronically sign the GSTR 1 after successfully submitting it, otherwise GSTR 1 will be considered as not-filed. The successful submission freezes the GSTR 1 and no changes can be made by taxpayer thereafter.

Due date for filing GSTR 1

• The due date to file GSTR 1 for a given tax period is 10th day of the succeeding month.

• For example, GSTR 1 for Goods/Services supplied during the calendar month of November 2017 should be filed by (23:59:59 hours) on 10th December, 2017.

 It is 1st to 5th September for July, 2017

 It is 16th to 20th September for August, 2017

Value of Turnover

The turnover value in Table 3 of GSTR 1 has to be entered manually for the first year as the information is not available with the GST system.

• From the second year of implementation of GST, the system will auto-calculate the turnover based on all the annual returns filed for all the GSTINs associated with a given PAN

(PAN-based turnover).

Total Invoice value column

• The ‘Total Invoice Value’ column in GSTR 1 is for the invoice value inclusive of taxes.

• Taxable value is the value as per the provisions of GST law.

There will be no validation that the invoice value is equivalent to taxable value plus the tax amount.

• Taxpayer can enter details of Goods and Services in the same invoices.

Various colums of GSTR 1

 B2B Supply refers to supply transactions between registered taxable entities/persons (Business-to-Business supplies).

• B2C Supply refers to supply transactions between a Registered Supplier and an Unregistered Buyer (Business-to-Consumer).

• A Debit Note is a document issued against an invoice in cases where the original invoice was issued at a value lower than the actual value of goods and/or services provided. It can also be issued in case of post supply price negotiations. The difference amount is accounted for in the form of a Debit note

• Credit Note is a document issued against an invoice in cases where invoice was issued at a value higher than the actual value of goods and/or services provided or the invoice value is reduced due to post supply negotiations. This may also happen when the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient.

• Debit Notes are to be reported in the return of the month in which they are issued by the supplier.

• Credit Notes are to be reported in the return of the month in which they are issued but not later than the return of the September month following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier.

• In case of supplies to consumers are to be reported in a consolidated manner (intra-state supplies to consumer and inter-state supplies of invoice value less than INR 2.5 lakhs),the credit/debit notes are not required to be reported separately. Such supplies have to be reported in a consolidated manner net off the values of credit and debit notes.

Reverse charge in GSTR 1

The recipient of goods and services is liable to pay tax under reverse charge mechanism, if the said goods or services are notified to be subject to Reverse Charge and if they are received from unregistered persons by the recipients and its value is more than specified threshold of Rs 5000 per day.

• All the purchases from unregistered person, which are subject to reverse charge, for which the recipients issues a tax invoice are to be reported in GSTR 2 (and not in GSTR 1).

Invoice upload in GSTR1

Taxpayers can upload invoice details any time during the tax period and not just at the time of filing of GSTR 1.

• For example, let’s take September 2017 as the tax period - the tax payer can upload invoices from 1st September to 10th October and after 15th October in case of late filing of GSTR 1.

• Taxpayers can modify/delete invoices any number of times till they submit the GSTR 1 of that particular tax period.

• The uploaded invoice details are in a draft version, and can be changed irrespective of due date until the GSTR 1 is submitted.

Invoice in GSTR 1

For a particular GSTIN, there cannot be duplicate invoice series in a particular financial year.

• The GST system will not accept duplicate supply invoices in a return and will provide error on validation.

• A tax payer can have multiple series of tax invoices in a financial year. There is no limit on the number of series of tax invoices that one can have in a financial year.

• The invoice number has to be of maximum length of 16 characters are alphanumeric and special characters of dash and slash.

Submission of GSTR 1

Application Reference Number (ARN) gets generated on successful filing of GSTR 1.

• An SMS and email is also sent to the taxpayer on the Mobile Number and E mail ID of his primary authorised signatory.

• Taxpayer will receive a system generated return defaulted notice in format 3A if he fails to file GSTR 1 by due date.

Requirements of filing GSTR1

The taxpayer should check the validity of the recipients GST in and upload the invoice details only if the recipient was active on the date of issue of invoice, otherwise the system will throw a validation error and will not accept invoice details pertaining to that GSTIN.

• All values like invoice value, taxable value and tax amounts are to be declared up to 2 decimal digits. The rounding off of the self-declared tax liability to the nearest rupee will be done in GSTR 3.

• A taxpayer cannot file GSTR 1 before the end of the current tax period. However, following are the exceptions to this rule:

 Casual Taxpayers after the closure of their business can file GSTR 1 before the end of the current tax period

 A taxpayer who has applied for cancellation of registration will be allowed to file GSTR 1 after confirmation of receipt of the application before the end of the current tax period.