What is GSTR 1?

Structure of GSTR-1 Form

Sections in GSTR-1 Form

Who is Liable to File GSTR-1?

Each registered dealer must complete the GSTR 1 filing process. The same is required and unaffected by the transactions that occurred that month. If you are a registered dealer, you must complete the GSTR-1 filing process even if there are no sales or transactions (this is called filing Nil returns). However, the following people or companies are excluded from submitting GSTR 1:

1. Input Service Distributor: Any commercial organisation that receives invoices for services used by its various branches is automatically considered an input service distributor (ISD) according to the GST regime.
2. Composition Dealer: Beginning on April 1, 2019, companies with a maximum yearly turnover of 1.5 Crores may choose to participate in the gst composition scheme. These companies are exempt from submitting GSTR 1.
3. A supplier of online information, database access, or retrieval service providers are exempt from the GSTR-1 filing requirement.
4. Non-resident taxable person: You are also free from submitting GSTR 1 on behalf of your company if you come within the category of non-resident taxable people.
5. This does not apply to taxpayers responsible for collecting tax at source (TCS) or deducting tax at source (TDS).

How to File GSTR-1?

On the GSTN platform, filing GSTR 1 is simple. Simply follow the instructions listed below to submit your GSTR-1 using the GSTN portal:

1. Step 1: Log in to the GSTN portal using the User ID and password provided.
2. Step 2: Choose “Services.”
3. Step 3: Select “Returns.”
4. Step 4: On the “Returns Dashboard,” choose the month and year you want to file the return.
5. Step 5: Click on “GSTR-1” after the returns for the given time have been displayed.
6. Step 6: After that, you may either upload or complete your returns online.
7. Step 7: You have the option of adding or uploading invoices.
8. Step 8: Make sure the form is filled out completely and accurately by rechecking it.
9. Step 9: Select “Submit.”
10. Step 10: Click “File GSTR-1” after verifying the information you supplied.
11. Step 11: Electronically or digitally sign the form.
12. Step 12: When a pop-up is displayed on your screen, click “Yes” to confirm that you want to file a GSTR-1. Watch for the generation of an ARN (Acknowledgement Reference Number).

How to Revise GSTR-1?

Once GSTR-1 is filed, it cannot be revised directly. However, if you made errors or missed entries in your original GSTR-1, you can correct them in the next month’s GSTR-1 filing. To do this, include the missing invoices or make adjustments for errors in the “Amendments” section of the subsequent GSTR-1. This allows you to update the details of previous tax periods.

Steps to Make Corrections in GSTR-1:

• Identify the error in the previously filed GSTR-1 return.
• Go to the upcoming GSTR-1 filing for the current period.
• Use the “Amendment” sections in the form to update B2B invoices, B2C large invoices, export invoices, or debit/credit notes.
• Enter the correct information along with original invoice details.
• Preview and submit your return after making all necessary changes.

Conclusion

After reading this article you may have undesrtood GSTR 1 meaning and In essence, information about outgoing supplies made during the month must be recorded in the GSTR-1 format as either invoice-specific, rate-specific, or state-specific information.

Not filing GSTR-1 correctly and on time can harm the reputation of your business as well, as your Compliance Rating may suffer.

As input tax credit depends on the supplier’s compliance, it will also affect one’s customers. Potential B2B buyers may refrain from doing business with you if you don’t file your GSTR-1 correctly, due to the problems they will face when not being able to claim ITC.