GSTR-1 Filing Guide for AY 2025-26: Expert Tips

GSTR-1 Filing Guide for Assessment Year 2025-26

Understanding and complying with Goods and Services Tax (GST) regulations is essential for businesses in India. This guide provides a comprehensive overview of GSTR-1 filing for the Assessment Year 2025-26, covering key aspects, deadlines, and best practices.

What is GSTR-1?

GSTR-1 is a monthly or quarterly statement that details all outward supplies (sales) made by a registered GST taxpayer. It includes information such as invoice details, customer GSTIN (if applicable), and the amount of tax collected. Accurate and timely filing of GSTR-1 is crucial for the seamless flow of input tax credit (ITC) to the recipients of goods and services.

Who Needs to File GSTR-1?

All GST-registered businesses are required to file GSTR-1, unless they fall under specific categories such as:

• Input Service Distributor
• Composition Scheme taxpayer
• Non-resident taxable person
• Taxpayer liable to collect TCS (Tax Collected at Source)
• Taxpayer liable to deduct TDS (Tax Deducted at Source)
• Supplier of online information and database access or retrieval services (OIDAR), who are required to pay tax themselves (as per Section 14 of the IGST Act).

Even businesses with no sales during a tax period must file a nil GSTR-1 return. Non-compliance can lead to penalties, so it's crucial to understand your obligations.

Key Components of GSTR-1

GSTR-1 comprises various sections requiring specific details. Here's a breakdown:

• B2B Invoices: Details of supplies made to registered persons (businesses).
• B2C Large Invoices: Details of supplies made to unregistered persons (consumers) where the invoice value exceeds ₹2.5 lakh.
• B2C Small Invoices: Summary of supplies made to unregistered persons (consumers) for invoice values up to ₹2.5 lakh.
• Credit/Debit Notes (Registered): Details of credit and debit notes issued to registered persons.
• Credit/Debit Notes (Unregistered): Details of credit and debit notes issued to unregistered persons.
• Exports: Details of export sales, including shipping bill details.
• Nil Rated, Exempt, and Non-GST Supplies: Details of sales that are nil-rated, exempt from GST, or not subject to GST.
• HSN-wise Summary of Outward Supplies: Summary of sales based on HSN (Harmonized System of Nomenclature) codes.
• Documents Issued: Details of invoices, debit notes, credit notes, and other documents issued during the tax period.

HSN Codes: Importance and Usage

HSN codes are crucial for classifying goods and services under GST. Businesses with a turnover exceeding ₹5 crore in the previous financial year are required to declare 6-digit HSN codes. Those with a turnover between ₹1.5 crore and ₹5 crore need to declare 4-digit HSN codes. Businesses with turnover below ₹1.5 crore are not mandated to declare HSN codes, but it's still recommended for better compliance and analysis. Ensure accurate HSN code reporting as it helps in tax assessment and avoids discrepancies.

GSTR-1 Filing Due Dates for AY 2025-26

The due dates for filing GSTR-1 depend on your chosen filing frequency:

• Monthly Filers: The due date is the 11th of the following month.
• Quarterly Filers: The due dates are as follows:
  • Quarter 1 (April-June): 13th of July
  • Quarter 2 (July-September): 13th of October
  • Quarter 3 (October-December): 13th of January
  • Quarter 4 (January-March): 13th of April

It's crucial to adhere to these deadlines to avoid late fees and penalties. Keep track of gst and customs compliance dates to prevent unnecessary fines.

How to File GSTR-1: A Step-by-Step Guide

Here's a step-by-step guide to filing GSTR-1 online:

1. Login to the GST Portal: Visit the GST portal (https://www.gst.gov.in/) and log in using your username and password.
2. Navigate to GSTR-1: Go to Services > Returns > Returns Dashboard.
3. Select the Filing Period: Choose the relevant financial year and tax period (month or quarter) for which you want to file GSTR-1.
4. Prepare GSTR-1 Details: You can prepare GSTR-1 details in two ways:
   • Online: Enter the invoice details directly on the GST portal. This is suitable for businesses with a smaller number of invoices.
   • Offline: Use the GST Offline Tool to upload invoice details in bulk. This is suitable for businesses with a large number of invoices. The offline tool is available for free download on the GST portal.
5. Upload Invoice Details (if using Offline Tool): If you're using the offline tool, generate a JSON file and upload it to the GST portal.
6. Verify and Rectify Errors: The GST portal validates the uploaded data. If any errors are found, rectify them before proceeding.
7. Preview GSTR-1: Before submitting, preview the GSTR-1 to ensure all details are accurate. Double-check key information like GSTINs, invoice numbers, and taxable values.
8. Submit GSTR-1: Once you're satisfied with the details, submit the GSTR-1.
9. File GSTR-1 using EVC/DSC: File GSTR-1 using either Electronic Verification Code (EVC) or Digital Signature Certificate (DSC). EVC requires verification via OTP sent to your registered mobile number or email address, while DSC requires a registered digital signature certificate. Small businesses often opt for EVC for convenience.
10. Acknowledge and Download: After successful filing, you'll receive an acknowledgement receipt. Download it for your records.

Using reliable gst software can simplify the filing process and reduce errors.

Late Fees and Penalties for GSTR-1 Filing

Failure to file GSTR-1 within the prescribed due dates attracts late fees and penalties. According to Section 47 of the CGST Act, 2017, the late fee is ₹200 per day (₹100 under CGST and ₹100 under SGST), subject to a maximum of ₹5,000. For nil GSTR-1 returns, the late fee is ₹20 per day. It's essential to prioritize timely filing to avoid these additional costs.

Common Errors to Avoid While Filing GSTR-1

To ensure accurate filing and avoid notices from the GST department, be mindful of these common errors:

• Incorrect GSTIN: Always verify the GSTIN of the recipient before entering it in GSTR-1.
• Wrong HSN Codes: Use the correct HSN codes for the goods and services you're supplying.
• Duplication of Invoices: Avoid entering the same invoice details multiple times.
• Incorrect Tax Rates: Ensure you're using the correct GST rates for your supplies. Refer to the GST rate finder tool on the GST portal or consult a tax professional.
• Rounding Off Errors: Avoid rounding off errors in tax calculations. Use the correct decimal places as specified by GST regulations.

Careful attention to detail minimizes the risk of errors and ensures a smooth filing process.

Amendments to GSTR-1

If you discover any errors after filing GSTR-1, you can rectify them in the subsequent GSTR-1 filing period. You can amend invoices, debit notes, credit notes, and other details in the GSTR-1 of the next month or quarter. However, remember that amendments are allowed only until the filing of the GSTR-3B return for the month of September following the end of the financial year or the filing of the annual return, whichever is earlier. GST and customs updates may impact amendment rules, so stay informed.

Tips for Efficient GSTR-1 Filing

• Maintain Accurate Records: Keep detailed records of all sales transactions, including invoices, debit notes, and credit notes.
• Reconcile Data Regularly: Reconcile your sales data with your accounting records to ensure accuracy.
• Use GST-Compliant Software: Invest in GST-compliant accounting software to automate the filing process.
• Stay Updated: Keep abreast of the latest GST rules, regulations, and notifications.
• Seek Professional Help: If you're unsure about any aspect of GSTR-1 filing, consult a tax professional or GST consultant. For compliance for indian businesses, consider enlisting external help.

Conclusion

Filing GSTR-1 accurately and on time is a critical aspect of GST compliance. By understanding the requirements, following the step-by-step guide, and avoiding common errors, businesses can ensure smooth and hassle-free filing. Stay informed about the latest telangana gst amendment bill and utilize available resources to maintain compliance and avoid penalties for Assessment Year 2025-26 and beyond.

---

Disclaimer

This article is for educational purposes only and does not constitute professional legal, tax, or financial advice. The information provided is based on public sources and may change over time. We are not responsible for any actions taken based on this content. Please consult a qualified professional for specific advice related to your situation.