WHY GSTR 1 IS FILED?

Individuals or entities registered under the Goods and Services Tax (GST) are required to file various returns periodically. One of the most important returns is the GSTR-1, which is a monthly return that summarizes the outward supplies made by a taxpayer during a particular tax period. Filing GSTR-1 is mandatory for all taxpayers registered under GST, and failure to do so can result in penalties and other legal consequences.

What is GSTR-1?

GSTR-1 is a monthly return that is filed by taxpayers registered under GST to report the details of outward supplies made during a particular tax period. Outward supplies refer to the sale or supply of goods or services to a recipient who is located outside the state. GSTR-1 also includes details of exempt, nil-rated, and non-GST supplies made by the taxpayer.

Who is Required to File GSTR-1?

All taxpayers registered under GST are required to file GSTR-1, regardless of whether they have made any outward supplies during the tax period. This includes:

• Taxpayers who are registered under the regular scheme
• Taxpayers who are registered under the composition scheme
• Taxpayers who are registered under the Input Service Distributor (ISD) scheme
• Taxpayers who are registered under the Non-Resident Taxpayer (NRT) scheme

When is GSTR-1 Due?

GSTR-1 is due on or before the 11th day of the month following the tax period to which it relates. For example, if the tax period is April, the GSTR-1 for that period must be filed on or before May 11th. If the due date falls on a public holiday, the return can be filed on the next working day.

How to File GSTR-1?

GSTR-1 can be filed online through the GST portal. The taxpayer must first log in to the portal using their GSTIN and password. Once logged in, they can navigate to the 'Returns' tab and select 'GSTR-1'. The taxpayer will then be required to enter the details of their outward supplies, exempt supplies, nil-rated supplies, and non-GST supplies. Once all the details have been entered, the taxpayer can review the return and submit it.

Penalties for Not Filing GSTR-1

Failure to file GSTR-1 on time can result in penalties. The penalty for late filing of GSTR-1 is Rs. 100 per day for the first 15 days, and Rs. 200 per day thereafter. The maximum penalty that can be levied for late filing of GSTR-1 is Rs. 5,000. Additionally, the taxpayer may also be liable to pay interest on the tax liability that was not paid due to the late filing of GSTR-1.

Conclusion

GSTR-1 is a crucial return that must be filed by all taxpayers registered under GST. Filing GSTR-1 on time is important to avoid penalties and other legal consequences. Taxpayers can file GSTR-1 online through the GST portal.

Frequently Asked Questions

1. Who is required to file GSTR-1?

All taxpayers registered under GST, regardless of whether they have made any outward supplies during the tax period, are required to file GSTR-1.

2. When is GSTR-1 due?

GSTR-1 is due on or before the 11th day of the month following the tax period to which it relates.

3. How to file GSTR-1?

GSTR-1 can be filed online through the GST portal. The taxpayer must first log in to the portal using their GSTIN and password. Once logged in, they can navigate to the 'Returns' tab and select 'GSTR-1'. The taxpayer will then be required to enter the details of their outward supplies, exempt supplies, nil-rated supplies, and non-GST supplies. Once all the details have been entered, the taxpayer can review the return and submit it.

4. What are the penalties for not filing GSTR-1?

Failure to file GSTR-1 on time can result in penalties. The penalty for late filing of GSTR-1 is Rs. 100 per day for the first 15 days, and Rs. 200 per day thereafter. The maximum penalty that can be levied for late filing of GSTR-1 is Rs. 5,000. Additionally, the taxpayer may also be liable to pay interest on the tax liability that was not paid due to the late filing of GSTR-1.

5. What should I do if I have not filed GSTR-1 for a certain period?

If you have not filed GSTR-1 for a certain period, you should file it as soon as possible. You can file GSTR-1 for past periods through the GST portal. However, you may be liable to pay penalties and interest for late filing.