Introduction
GST filing in India often feels like a complex puzzle for businesses, but here’s some relief – it doesn’t have to be stressful! The most critical returns under GST are GSTR 1 and GSTR 3B. Understanding these can simplify your compliance process and help you stay on top of your tax obligations.
Once you get the hang of GSTR 1 and GSTR 3B, filing them becomes a routine task instead of a monthly panic. This blog from RMC Auditors walks you through everything you need to know, ensuring you approach your GST returns clearly and confidently.
What are GSTR 1 and GSTR 3B?
These two forms are foundational to GST reporting, covering your outward sales, inward purchases, tax liabilities, and credit claims – all while keeping you compliant with the law.
GSTR 1 – Report of Outward Supplies
GSTR 1 is filed monthly or quarterly, depending on your turnover, and includes the details of outward supplies, i.e., your sales. It covers:
- B2B transactions
- B2C transactions
- Zero-rated supplies and exports
- Deemed exports
- Advance receipts
- Credit/debit notes issued
This form is essential because it reflects the sales you’ve made and allows your customers to claim input tax credit. Filing GSTR 1 accurately ensures smooth credit flow for your buyers and helps maintain strong business relationships.
GSTR 3B – Monthly Summary Return
GSTR 3B, on the other hand, is a summary return filed monthly. It includes:
- Total outward and inward supplies
- Tax liability (IGST, CGST, SGST, Cess)
- Input Tax Credit (ITC) claims
- Net tax payable
- Interest or late fees, if applicable
This return is how you pay your GST. While GSTR 1 focuses on invoices, GSTR 3B captures the summarized tax impact of your transactions.
Together, these two returns create a comprehensive GST compliance cycle for any registered business.
Let RMC Auditors make GST filing a stress-free experience! Get professional help with GSTR 1 and 3B filing and stay penalty-free. Contact us today!
Difference between GSTR 1 and GSTR 3B
While both returns are integral to the GST filing process, they differ significantly in purpose, structure, and filing requirements.
Here’s a breakdown of the differences:
| Parameter | GSTR 1 | GSTR 3B |
|---|---|---|
|
Purpose |
Reports on outward supplies |
Summary of outward & inward supplies |
|
Details Required
|
Invoice-level reporting |
Consolidated data |
|
ITC Claim |
Not applicable |
ITC can be claimed |
|
Tax Payment
|
No payment involved |
Used to pay tax liability |
|
Filing Frequency |
Monthly or Quarterly |
Monthly |
|
Amendments
|
Amendments allowed in future returns |
No amendment facility
|
GSTR 1 and GSTR 3B Due Dates
Timely compliance avoids penalties and maintains your business’s credibility. Here's a look at the standard due dates:
GSTR 1 Due Dates:
- Monthly Filers (Turnover > ₹5 Cr): 11th of the next month
- Quarterly Filers (Turnover ≤ ₹5 Cr): 13th of the month following the quarter
GSTR 3B Due Date:
- All registered businesses: 20th of the following month
Occasionally, the government may extend deadlines, but it’s always wise to file on time to avoid late fees (₹50–₹200 per day) and 18% annual interest on delayed tax payments
How to file GSTR 1 and GSTR 3B?
Let’s break down the filing process for each form so you can approach it with confidence and precision.
How to File GSTR 1
- Gather sales data: Include invoices, exports, debit/credit notes, and advance receipts.
- Login to GST portal: Visit www.gst.gov.in.
- Go to Returns Dashboard: Under “Services” > “Returns”.
- Select GSTR 1: Choose the relevant month or quarter.
- Enter details:
- B2B Sales (Table 4A)
- B2C Large Invoices (Table 5A)
- Small B2C Supplies (Table 7)
- Credit/Debit Notes (Table 9)
- Advances (Table 11)
- HSN-wise summary (Table 12)
- Submit and Sign: Double-check entries and use DSC or EVC to complete submission.
How to File GSTR 3B
- Compile data: Total sales, purchases, ITC, and tax payable.
- Login and select GSTR 3B from the dashboard.
- Enter data in these tables:
- 3.1: Outward supplies
- 3.2: Interstate supplies to unregistered persons
- 4: Eligible ITC
- 5: Interest and late fee (if applicable)
- Calculate net tax liability
- Make payment and submit return after verification.
Many businesses rely on professional accounting tools or services from experts like RMC Auditors to avoid errors and ensure timely submission.
Reconciliation Between GSTR 1 and GSTR 3B
Reconciliation ensures that what you report in GSTR 1 matches what you summarize in GSTR 3B. This step is crucial to avoid notices, audits, or ITC rejections.
Common Reconciliation Errors:
- Mismatched sales amounts
- Incorrect tax calculations
- Timing differences in reporting
- Classification mismatches (B2B vs B2C)
Steps for Reconciliation:
- Generate reports comparing GSTR 1 and GSTR 3B.
- Identify mismatches in tax amounts or invoice values.
- Correct errors by amending GSTR 1 (future period) or adjusting GSTR 3B.
- Implement controls to ensure consistency in future filings.
Frequent reconciliation helps avoid unwanted queries from the GST department and improves your Input Tax Credit accuracy
Tips for Error-Free GSTR 1 and GSTR 3B Filing
Want to stay penalty-free and compliant? Follow these best practices:
- Maintain up-to-date books of accounts
- Validate GSTINs of customers and vendors
- Use GST-ready accounting software
- File early – never wait till the deadline
- Reconcile monthly before filing
- Set a compliance calendar with reminders
- Provide training to your team
- Always verify auto-filled data
- Maintain a log of all amendments
- Consult a GST expert if you’re unsure
Even one mistake in your returns can lead to cascading compliance issues. A disciplined approach can make a huge difference.
Conclusion
Mastering GSTR 1 and GSTR 3B filing is not just about compliance – it’s about running a smoother, smarter business under the GST regime. Understanding their differences, filing them accurately, and reconciling regularly will help you avoid penalties and maintain your business’s reputation.
Staying updated on changes in GST regulations and working with trusted professionals like RMC Auditors ensures that your business always stays ahead.
Looking for reliable GST support? Let RMC Auditors handle your GSTR 1 and GSTR 3B filings so you can focus on growing your business – stress-free!
FAQ's
Yes, it is possible to file GSTR 1 without filing GSTR 3B. Both returns are independent and serve different purposes:
GSTR 1 is a detailed return of outward supplies (sales).
GSTR 3B is a summary return where tax liability is discharged.
However, consistent non-filing of GSTR 3B may lead to notices or penalties from the GST department, and mismatches between GSTR 1 and GSTR 3B can cause compliance issues.
There is no strict rule on the order of filing GSTR 1 and GSTR 3B; however, the following approach is recommended for seamless compliance:
File GSTR 1 first if you want to auto-populate certain fields in GSTR 3B.
Alternatively, if you're discharging tax liability first, you can file GSTR 3B before filing GSTR 1.
Both should be filed within their respective deadlines to avoid penalties.
No, you cannot file GSTR 1 for the next month without filing GSTR 1 and GSTR 3B for all preceding periods. GST systems may block the filing of GSTR 1 if there is a delay in filing GSTR 1 or GSTR 3B for earlier periods.
Errors in GSTR 1 and GSTR 3B can be corrected as follows:
GSTR 1: Amendments can be made in subsequent months by reporting corrections in the appropriate sections of the next GSTR 1 return. For example, wrong invoices can be rectified under the "Amended Invoices" section.
GSTR 3B: Errors in GSTR 3B cannot be directly amended; instead, you must adjust the discrepancies in the subsequent month’s GSTR 3B. For significant errors, consult with a tax professional.
Yes, filing NIL GSTR 1 and GSTR 3B is mandatory if you have no transactions during the tax period. Failure to file can result in late fees and impact your compliance rating
Yes, the same HSN (Harmonized System of Nomenclature) codes can be used in both GSTR 1 and GSTR 3B.
GSTR 1: HSN codes are mandatory for detailing outward supplies based on the turnover threshold.
GSTR 3B: HSN codes are not required, as this is a summary return. However, maintaining consistency between GSTR 1 and GSTR 3B data ensures smooth reconciliation.
Also read
Recent Blog
How to Structure Your Accounting
March 23, 2023
Innovation Accounting
March 23, 2023
Accounting for Non-Accountant
March 16, 2023
