Introduction to GSTR-1 | Requirements and Filing of Form

Table of Contents

1. Introduction

2. About Form GSTR-1

3. Requirements of filing Form GSTR-1

4. Other provisions relating to Form GSTR-1

5. Furnishing details in Form GSTR-1 and IFF

1. Introduction

 Under the GST law, every registered person is required to file the details of outward supplies made during the relevant tax period (month or quarter) electronically over the GSTN portal. These details are required to be filed in a statement referred to as Form GSTR-1.

This document provides all the provisions relating to Form GSTR-1 including its manner of filing under the GST Legislation.

2. About Form GSTR-1

The GST law requires every registered person to furnish the details of outward supplies which would include the details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during any tax period. The provisions relating to filing of Form GSTR-1 as given under the GST legislation are discussed in this document in the below manner.

(a) Requirements of filing Form GSTR-1: This part discusses the GST provisions relating to the requirement of filing the Form GSTR-1, restrictions where Form GSTR 1 is not allowed to be filed, the concept of Invoice furnishing facility (‘IFF’), time limit for filing Form GSTR 1,

(b) Other provisions relating to Form GSTR-1: The other provisions relating to the Form GSTR-1 such as its revision/rectification, recovery of tax on transactions declared in GSTR 1, filing through SMS, applicability of late fee, are discussed in this para.

(c) Furnishing details in Form GSTR-1 and IFF: While filing the Form GSTR-1 a registered person is required to fill various sections and fields. In this para, the manner of filing Form GSTR 1 along with the instructions for filing various fields are discussed.

Each of the above points relating to filing of Form GSTR 1 are discussed in detail in the below-mentioned paragraphs.

3. Requirements of filing Form GSTR-1

The requirement of filing Form GSTR-1 including its timelines etc. are discussed in the below-mentioned paragraphs.

3.1 Registered persons required to file Form GSTR-1

The GST law provides that every registered person is required to furnish the details of outward supplies of goods or services or both effected during a tax period in a prescribed form. In this regard, the CGST Rules provides that such details would be required to be furnished in Form GSTR 1. However, the given requirement is not applicable to the following persons:

(a) Input Service Distributor (‘ISD’)

(b) Non-resident taxable person (‘NRTP’)

(c) Person registered under Composition scheme

(d) Person registered as a TDS Deductor

(e) Person registered as a TCS Collector

(f) Person registered for providing the OIDAR services

3.1.1 Invoice Furnishing Facility (IFF) for persons opting QRMP Scheme

With effect from January 01, 2021, the Government has introduced the Quarterly Return Monthly Payment (‘QRMP’) scheme for the taxpayers having aggregate turnover up to Rs. 5 crores in the preceding financial year. In this scheme, the statement/ return is required to be furnished on a quarterly basis however the tax is required to be paid on a monthly basis.

In order to ensure that the invoice details are duly communicated to the recipient on a monthly basis so that their credit eligibility would not get affected due the quarterly filing of return /statement, the GST law enables the supplier to furnish the B2B invoices on monthly basis. This furnishing facility is referred to as the Invoice Furnishing Facility (‘IFF’).

3.1.2 FormGSTR 1: Nil Details

 The details of outward supplies in Form GSTR-1 is required to be furnished for every month/quarter whether or not any supplies of goods or services or both have been made during such tax period. In other words, Form GSTR 1 would be required to be filed even if there is no detail of outward supply.

3.2 Restrictions in filing Form GSTR-1 and Invoices under IFF

There are few scenarios under the GST law which restricts the registered person from furnishing the Form GSTR 1. These scenarios are discussed in the below mentioned paragraphs.

3.2.1 Filing of Form GSTR 3B for previous tax period is mandatory

A registered person required to furnish return monthly/for every quarter shall not be allowed to furnish the details of outward supplies of goods or services or both in Form GSTR-1/IFF if he has not furnished the return in Form GSTR-3B for the preceding month/quarter. Therefore, a registered person cannot merely file the Form GSTR 1 showing the details of outward supplies. In order to file the Form GSTR 1 he would need to ensure that the Form GSTR 3B for previous tax period is duly filed.

3.2.2 Filing of Form GSTR-1 for previous tax period is mandatory

The Form GSTR 1 would not be allowed to be furnished if the Form GSTR-1 for the previous tax periods has not been furnished.

The above provision also provides that the Government may allow a registered person or a class of registered persons to furnish Form GSTR-1 even if he has not furnished GSTR-1 for one or more previous tax periods. It would be allowed by way of notification on the recommendations of the Council and subject to conditions and restrictions specified in the notification.

3.3 Time limit for filing Form GSTR-1

In terms of the CGST Act, Form GSTR-1 is required to be filed on or before the 10^th day of the month succeeding the relevant month. However, the Government has extended the said due date for each of the tax periods to the 11^th day of the month succeeding the relevant month. Notably, in the case where the person has opted for the QRMP scheme, he would be required to file the said form on a quarterly basis on or before the 13^th day of the month succeeding the relevant quarter.

3.3.1 Time limit for furnishing invoices under Invoice Furnishing Facility

A supplier can report the details under Invoice furnishing facility for the first two months of the quarter from 1^st to 13^th of the month succeeding the relevant month.

3.3.2 Power to grant extension in filing Form GSTR-1

The GST law empowers the Commissioner to extend the time limit for furnishing Form GSTR-1. The law provides that any extension of time limit notified by the Commissioner of SGST or Commissioner of UTGST shall be deemed to be notified by the Commissioner of CGST. A similar provision also exists under the respective State GST Laws. Therefore, issuance of separate notifications for extension in filing Form GSTR 1 is not required.

3.3.3 Summary – Time limit for furnishing Form GSTR 1 and IFF

The time limit for furnishing Form GSTR-1 and invoices under the invoice furnishing facility under the QRMP scheme is summarized as under:

4. Other provisions relating to Form GSTR-1

The other points relating to furnishing of Form GSTR-1 such as manner of rectifying the errors and omission, late fees for delay in filing Form GSTR 1, recovery of the amount relating to transactions reporting in Form GSTR-1 but tax on the same has not been paid in GSTR 3B, etc. are discussed in detail in the below-mentioned paragraphs.

4.1 Revision/Rectification of Form GSTR-1

Unlike the erstwhile Service Tax and Central Excise laws, where the law used to permit the taxpayers to revise their returns, the GST law does not provide any provision for the revision of Form GSTR-1.

The GST law provides the registered person on the discovery of any error or omission would be required to rectify the same by the earliest of the following dates:

(a) 30th November following the end of financial year to which such details pertain, or

(b) Furnishing of the relevant Annual Return

The time limit for correcting such error or omission for the period July 2017 to March 2018 was extended up to the due date of filing of return for the month of March 2019.

4.2 Fee for late filing of Form GSTR-1

Under the GST law, where the registered person files Form GSTR 1 after the due date, he would be liable to pay a late fee for such late filing. The fees in the given case would be Rs. 200 per day (i.e. Rs. 100 under the CGST Act and Rs. 100 under the respective SGST Act). However, the Government has provided relaxation and the late fees for GSTR-1 shall be Rs. 50 per day (i.e. Rs. 25 under the CGST Act and Rs. 25 under the respective SGST Act) subject to maximum of limit of:

Moreover, the late fees for Nil return shall be Rs. 20 per day (i.e. Rs. 10 under the CGST Act and Rs. 10 under the respective SGST Act) subject to maximum of limit of Rs. 500.

4.3 Recovery of Tax in respect of transaction merely declared in Form GSTR 1

The Finance Act 2021 has amended the provision relating to recovery of tax to define the meaning of the term self-assessed tax. This term has been defined to include the tax payable in respect of outward supplies furnished in Form GSTR-1, but not included in Form GSTR-3B. Therefore, if a person has furnished details of outward supplies in Form GSTR-1 but has not discharged the tax liability i.e., not furnished such details of outward supplies in its Form GSTR-3B, then the same would qualify as self-assessed tax and the department may initiate the recovery proceedings for such transaction. The amendment ensures that tax declared in Form GSTR 1 must actually be paid by the supplier.

4.4 Invoice level System Matching of details furnished by supplier with recipient details

The GST system as originally envisaged under the law intended to achieve the invoice wise matching of details furnished by the supplier. The law in this regard provided that whatever information that the supplier would furnish in its Form GSTR 1, the same would be auto populated in the Form GSTR 2A of the recipient. Using the Form GSTR 2A, the recipient could file its Form GSTR 2 (i.e. details of inward supplies). Any addition, deletion and modifications by the recipient in its Form GSTR 2 would be communicated to the respective supplier through Form GSTR 1A. Based on Form GSTR 1, Form GSTR 2 and an auto-populated Form GSTR 1A, the final return (i.e. Form GSTR 3) could be filed.

The above system however could not be operationalised due to various reasons. In lieu of this, the Government has implemented a system of filing Form GSTR 1 and Form GSTR 3B.

Notably, the Finance Act, 2022 with effect from October 01, 2022, has omitted provisions relating to the matching of details etc. as originally envisaged under the GST from the statue books.

5. Furnishing details in Form GSTR-1 and IFF

The provisions relating to manner of furnishing including the instructions relating to filling the various fields and sections of Form GSTR 1 are discussed in the below-mentioned paragraphs.

5.1 Manner of filing Form GSTR-1

The Form GSTR-1 is required to be filed electronically over the GSTN portal. The details furnished by the supplier would be communicated to the recipient in Form GSTR-2A. Based on the Form GSTR 2A, an auto-drafted statement in Form GSTR-2B would be available to the recipient which contains the details of input tax credit for every month.

5.1.1 Filing Form GSTR -1 short messaging service (SMS) facility

 A registered person can furnish a ‘Nil detail’ of outward supplies in Form GSTR-1 through an SMS using the registered mobile number and the said details shall be verified by a One Time Password (OTP) facility.

In this regard, the person can send a SMS to 14409 number to file Nil Form GSTR-1. For sending this message, the following format should be used:

NILspace<Return Type>space<GSTIN>space<Return Period>

For the purpose of ‘Nil’ filing of Form GSTR 1, the term ‘Nil details’ of outward supplies has been defined as details of outward supplies for a tax period that has nil or no entry in all the Tables in Form GSTR-1.

5.1.2 Manner of furnishing invoices under IFF facility

The taxpayer opting for the QRMP scheme can furnish the invoice details for the first two months of the quarter using the IFF facility electronically through the GSTN portal. The invoices furnished under this facility would be communicated to the recipient in Form GSTR-2A. Based on the Form GSTR 2A, an auto-generated statement in Form GSTR-2B would be available to the recipient which contains the details of input tax credit for every month.

The details of invoices furnished under this facility is auto-populated in the Form GSTR 1 of the relevant quarter. In another words, the invoices furnished in the first two months are not required to be furnished again in Form GSTR-1.

5.1.3 Auto-Population of e-Invoice details in Form GSTR-1

Few specified taxpayers are required to obtain the Invoice Reference Number (IRN) from the Invoice Registration Portal (IRP). In order to obtain the IRN from IRP, the supplier is required to upload all the details relating to the invoice. In order to ensure that the supplier may not be required to fill such details again on the GSTN portal while filing Form GSTR 1, the GSTN system has facilitated the auto-population of such E-invoices details in Form GSTR-1.

5.1.4 Import of invoices from e-way bill portal to Form GSTR-1

A registered person required to generate E-way bill can also import invoice details from E-way bill portal to prepare their Form GSTR-1 for a month/quarter. In this regard, the GSTN system provides an option of ‘Import EWB data’.

5.1.5 Auto population of details in GSTR-1 from table 6A filed separately

One of the condition for getting the refund of IGST paid on the export of goods with payment of tax is that the supplier has furnished Form GSTR 1 and a valid return Form GSTR 3B. The export details are required to be furnished in Table 6A of the Form GSTR 1.

The law provides that wherever the date of filing Form GSTR 1 is extended then the supplier would be required to furnish the invoice details separately in Table 6A of the Form GSTR 1 after furnishing Form GSTR 3B of the relevant period.

The information furnished in table 6A is auto-populated in Form GSTR-1 of the relevant tax period. In other words, such details are not separately required to be reported.

5.2 Instructions for filing Form GSTR-1

The Form GSTR-1 provides the details of outward supplies which include details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during any tax period.

Notably, the person opting for the QRMP scheme can furnish the invoice-wise details under the Invoice Furnishing Facility for the first two months of the quarter under the following fields only:

• B2B invoices
• Credit/ Debit Notes (Registered) – CDNR
• Amended B2B invoices
• Amended Credit/Debit Notes (Registered)

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