Critical Points to Consider Before Filing GSTR-1

Contents Covered

• Due date of filing of GSTR 1 and its importance
• Accuracy of the data in GSTR 1 and its importance
• Categorize Taxable Supplies Correctly
• Validate HSN/SAC Codes
• Apply the Correct Tax Rates
• Reconcile with Bank Statements
• Conclusion

The GSTR-1 is a crucial return under the Goods and Services Tax (GST) regime in India. It requires businesses to report details of outward supplies (sales) and is essential for enabling the recipient to claim input tax credit (ITC).

Error in filing may lead to troubles in terms of penalties or incorrect ITC for our customers

Here are critical points to consider before filing GSTR-

Due date of filing of GSTR 1 and its importance

• Monthly Filers: GSTR-1 is due by the 11th of the succeeding month.
• Quarterly Filers: Under the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme, it’s due by the 13th of the month following the quarter.
• Here missing the due date simply means that the customer will not be able to take the Input Tax Credit in the relevant month

Accuracy of the data in GSTR 1 and its importance

• Ensure the accuracy of GSTINs for all customers. Incorrect GSTINs can cause ITC denial for the recipient.
• Double-check the classification of transactions as B2B (Business-to-Business), B2C (Business-to-Consumer), or export.

Categorize Taxable Supplies Correctly

• Segregate taxable, exempt, and nil-rated supplies appropriately.
• Report zero-rated supplies (exports) and supplies to SEZ units/developers under the correct sections.

Validate HSN/SAC Codes

• Ensure proper classification of goods and services using HSN (Harmonized System of Nomenclature) or SAC (Services Accounting Code).
• Incorrect codes can lead to compliance issues or notices from the tax authorities.

Apply the Correct Tax Rates

• Confirm that the applicable GST rates are correctly applied to all invoices.
• Misapplication of rates can lead to short payment of tax or disputes with customers.

Reconcile with Bank Statements

• Ensure that money received in the bank account has also been taken care for filing of GST Return

Conclusion

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