Introduction – What is GSTR-1?

If GST were a cricket match, GSTR-1 would be your batting scorecard. It’s the official record where you declare all your outward supplies under GST basically, every sale you’ve made in a month or a quarter (depending on your turnover).

In simple terms, GSTR-1 is a GST return that tells the government:
“Hey, these are the goods and services I’ve sold, here’s who I sold them to, and this is the tax I collected.”

So, what exactly is GSTR-1?

1. It’s a monthly or quarterly statement of all your outward supplies (sales).
2. Filed by every registered business under GST, except for composition taxpayers and input service distributors.
3. Submitted online through the GST portal.

Think of it as your business’s sales diary, only digital and instead of being for your eyes only, it’s for the tax authorities.

Why is GSTR-1 Important?

Missing a GSTR-1 filing is like forgetting to submit your homework except here, the teacher is the GST department, and the punishment involves late fees, penalties, and even blocked input tax credits for your buyers.

Here’s why it’s a big deal:

1. Transparency – It keeps your sales clean and visible to the government.
2. Buyer’s ITC – Your buyers claim Input Tax Credit (ITC) based on your GSTR-1. If you don’t file, they suffer—and they won’t be too happy about it.
3. GST Compliance – Filing GSTR-1 on time is mandatory for smooth compliance and avoiding notices.
4. Data Sync – The details you file in GSTR-1 automatically flow into GSTR-2A and GSTR-2B for your buyers.

Why Businesses Can’t Afford to Miss It

1. Late Fees & Penalties: ₹50 per day (₹20 for NIL return) until you file.
2. Blocked ITC for Customers: If your GSTR-1 isn’t filed, your buyers’ ITC gets stuck, straining your relationships.
3. Compliance Rating Impact: Regular defaults can dent your credibility.
4. System Blocks: Miss consecutive filings, and the GST portal may block your ability to file GSTR-3B.

In short: Filing GSTR-1 return on time is not optional, it's your passport to smooth GST compliance. Skip it, and you’ll face not just penalties but also angry calls from clients.

Who Should File GSTR-1 (Eligibility)

So, now that we know what GSTR-1 is, the next big question is: “Do I really need to file it?”
Well, unless you’re on some special exemption list, the short answer is: YES.

GSTR-1 Eligibility – Who Files GSTR-1?

1. Every GST-registered taxpayer who makes outward supplies under GST (sales of goods or services) must file GSTR-1.
2. Doesn’t matter if you’re a startup, freelancer, e-commerce seller, or a giant corporation—if you’re collecting GST, you’re reporting it here.

Think of GSTR-1 as the mandatory sales diary that every GST-registered business has to share with the government.

Who Doesn’t Need to File?

There are a few exceptions (lucky them!):

1. Composition Scheme taxpayers (they file GSTR-4 instead).
2. Input Service Distributors (ISDs).
3. Non-resident taxable persons.
4. Taxpayers collecting TDS/TCS under GST.

If you’re not in these categories, congratulations you’re on the mandatory GSTR-1 filing list.

What About NIL GSTR-1 Filing?

Here’s the catch: Even if you made zero sales in a month or quarter, you still can’t ghost the GST portal. You’ll need to file a Nil GSTR-1.
It’s like marking attendance in class even if you have nothing to say, you’ve got to show up.

Turnover Limits & Filing Frequency

Filing frequency depends on how big your business turnover is:

1. Monthly Filing – If your annual turnover is above ₹5 crore, you must file GSTR-1 every month.
2. Quarterly Filing – If your annual turnover is up to ₹5 crore, you can opt for the QRMP scheme (Quarterly Return Monthly Payment). That means:
   • File GSTR-1 once every quarter.
   • Pay taxes monthly through PMT-06.

Even if you’re eligible for quarterly filing, some businesses still prefer monthly GSTR-1 filing to keep ITC flowing smoothly for their buyers.

If you sell, you file. If you don’t sell, you still file (a NIL return). The only ones who skip GSTR-1 are those in special categories.

Who is Exempt from GSTR-1 Filing?

By now, you might be thinking: “If everyone has to file GSTR-1, is there anyone who gets a free pass?”
Yes, some lucky categories of taxpayers are officially exempt from GSTR-1 filing. Let’s break it down.

Categories Exempt from GSTR-1

1. Composition Dealers under GST
   
   
   1. If you’re registered under the Composition Scheme, you don’t file GSTR-1.
   2. Instead, you file GSTR-4 annually.
   3. Why? Because composition dealers pay tax at a fixed rate on turnover and can’t charge GST on invoices.
       
2. Input Service Distributors (ISD)
   
   
   1. ISDs don’t make outward supplies, they just distribute input tax credit (ITC) to their branches.
   2. So, no GSTR-1 for them.
   3. They file GSTR-6 instead.
       
3. TDS/TCS Deductors under GST
   
   
   1. Government departments, e-commerce platforms, or others who deduct TDS/TCS under GST don’t need to bother with GSTR-1.
   2. They file GSTR-7 (TDS) or GSTR-8 (TCS).
       
4. Non-Resident Taxable Persons (NRTP)
   
   
   1. Foreign businesses making supplies in India but not having a fixed place here?
   2. They file GSTR-5 instead of GSTR-1.
       
5. OIDAR Service Providers (Online Information & Database Access or Retrieval Services)
   
   
   1. Fancy name for Netflix, Spotify, or other digital service providers supplying from abroad to Indian customers.
   2. They don’t file GSTR-1 either—they file GSTR-5A.

Quick Recap – Who’s Exempt from GSTR-1?

1. Composition dealers → GSTR-4
2. ISD → GSTR-6
3. TDS/TCS deductors → GSTR-7 / GSTR-8
4. Non-resident taxable persons → GSTR-5
5. OIDAR service providers → GSTR-5A

So, if you fall into one of these buckets, congrats! You’re spared from the monthly GSTR-1 grind.

Think of it like this: GSTR-1 is for sellers. If you’re not selling outward supplies, you’re probably exempt.

Due Dates of GSTR-1 (Monthly & Quarterly)

If GST had a calendar app, the first reminder you’d get would be: “Don’t forget your GSTR-1 due date!”
Miss it, and not only do you pay late fees, but your buyers also won’t be able to claim ITC (Input Tax Credit) on time. Double trouble!

GSTR-1 Due Date for Monthly Filing

• Who files monthly? → Taxpayers with turnover above ₹5 crore in the previous financial year.
• Due Date: The 11th of the following month.
  • Example: For outward supplies in April 2025, file GSTR-1 by 11th May 2025.

GSTR-1 Due Date for Quarterly Filing (QRMP Scheme)

• Who files quarterly? → Taxpayers with turnover up to ₹5 crore, who opted for the QRMP scheme.
• Due Date: The last day of the month following the quarter.
  • Example: For April–June 2025 quarter, the due date is 31st July 2025.

Penalty for Missing GSTR-1 Due Dates

GST doesn’t like procrastinators. Here’s what happens if you miss the deadline:

• Late Fee:
  1. ₹200 per day (₹100 CGST + ₹100 SGST),
  2. Capped at ₹5,000 per return.
• Interest: Not applicable on GSTR-1 (only on late tax payments via GSTR-3B).
• Business Impact:
  
  1. Your buyers can’t claim ITC until you file.
  2. GST portal may restrict future filings.
  3. In extreme cases, the GST department can freeze your compliance status.

In short, file on time = smooth compliance. File late = pay fine + upset buyers.

If you’re on the QRMP scheme, you can still upload invoices monthly using the Invoice Furnishing Facility (IFF) for the first two months. That way, your buyers can claim ITC without waiting for the full quarter.

GSTR-1 Format & Tables Explained

If you’ve ever opened the GSTR-1 return format, you know it feels like opening a 500-piece puzzle box. Don’t worry  I’ll be your guide through all 13–15 tables. By the end, you’ll know exactly where your sales invoices, debit notes, and even “nil” supplies belong.

GSTR-1 Tables One by One

Table 1 – Basic Details

What goes here? GSTIN, legal name, and trade name of the taxpayer.

Why does it matter? Think of it as writing your name on your exam paper. If this is wrong, everything else is pointless.

Table 2 – Aggregate Turnover (Last FY)

What goes here? Previous financial year’s turnover (PAN level).

Why does it matter? This decides if you’re eligible for monthly or quarterly filing under QRMP.

Table 3 – B2B Invoices

What goes here? All sales to registered persons (i.e., other GSTIN holders) inside India.

Example: You sold ₹5,00,000 worth of goods to a wholesaler in Delhi. That invoice goes here.

Why does it matter? Your buyer can claim ITC only if you report it here correctly.

Table 4 – B2C (Large)

What goes here? Sales to unregistered customers where invoice value > ₹2.5 lakh (inter-state).

Example: You sell designer furniture worth ₹3,00,000 to a walk-in customer from Bangalore.

Why does it matter? These high-value sales must be reported separately for compliance.

Table 5 – B2C (Others)

What goes here? Small ticket sales: intra-state OR inter-state with invoice < ₹2.5 lakh.

Example: A bakery selling ₹500 worth of pastries to random customers daily.

Why does it matter? Captures your retail-type sales volume.

Table 6 – Exports & SEZ Supplies (Zero-rated)

What goes here? Exports, supplies to SEZ units/developers.

Example: Exporting handicrafts worth ₹10,00,000 to the US.

Why does it matter? Zero-rated supplies = no GST, but you still need to claim refunds/ITC.

Table 7 – Deemed Exports

What goes here? Supplies notified as “deemed exports” (e.g., supply to an EOU).

Why does it matter? Buyer can claim refund; supplier reports here.

Table 8 – Nil-rated, Exempt & Non-GST Supplies

What goes here? Supplies not subject to GST.

Example: Fresh milk (exempt), petrol (non-GST).

Why does it matter? Government tracks exempt turnovers too.

Table 9 – Amendments (B2B, B2C, Exports, etc.)

What goes here? Corrections of previous return data.

Example: You wrongly entered ₹50,000 instead of ₹5,00,000 last month → fix it here.

Why does it matter? Keeps your return clean and avoids mismatch notices.

Table 10 – Debit Notes / Credit Notes (Registered & Unregistered)

What goes here? Any debit or credit notes issued against invoices.

Example: A customer returns goods worth ₹20,000 → record a credit note here.

Why does it matter? Adjusts your tax liability.

Table 11 – Advances Received / Adjusted

What goes here? Advance payments you’ve received (before issuing invoice).

Example: Customer pays ₹1,00,000 advance for a project.

Why does it matter? GST is payable on advances too (except in goods for small taxpayers).

Table 12 – HSN-wise Summary

What goes here? HSN code-wise summary of outward supplies.

Example: If you sell textiles (HSN 5208), aggregate sales go here.

Why does it matter? Helps GST authorities analyze supply patterns.

Table 13 – Documents Issued

What goes here? Number of invoices, debit notes, credit notes, delivery challans issued.

Why does it matter? Ensures no invoice is “lost” in reporting.

Why All These Tables Matter

1. B2B & B2C tables → ITC claim and retail sales tracking.
2. Export/SEZ/Deemed exports → Refund claims.
3. Nil-rated & exempt → Compliance visibility.
4. HSN summary → Classification & fraud detection.
5. Amendments & credit/debit notes → Accuracy in GST reporting.

In short, each table is like a “puzzle piece.” Leave one out, and your GSTR-1 filing picture won’t be complete.

Always cross-check your sales register vs GSTR-1 tables before filing. Even a small mismatch can lead to a mismatch in GSTR-2A/2B for your buyer (and some angry phone calls ????).
 

B2B vs B2C Supplies in GSTR-1

When filing GSTR-1, one of the biggest questions businesses have is:
“Should I report this as B2B or B2C?”

Don’t worry — it’s not rocket science. Let’s break it down.

B2B Supplies in GSTR-1 (Table 4)

B2B = Business-to-Business
These are supplies made to registered persons (other businesses having a GSTIN).

What goes here:

1. Sales to a registered dealer within your state or outside your state.
2. Supplies to SEZ units/developers with/without IGST.
3. Exports with GSTIN (if applicable).

Why it matters:
Because your buyer will claim Input Tax Credit (ITC) using your GSTR-1 details. If you miss an invoice here, their ITC gets stuck and trust us, you’ll get a call from them faster than a food delivery app notification.

B2C Supplies in GSTR-1 (Table 5 & Table 7)

B2C = Business-to-Consumer
These are supplies made to unregistered persons (a customer without a GSTIN).

Two categories:

1. B2C Large (Table 5):
   
   • Inter-state invoices > ₹2.5 lakh issued to unregistered customers.
   • Example: A jeweler in Delhi sells a necklace worth ₹3 lakh to a customer in Mumbai.
2. B2C Others (Table 7):
   
   • Small transactions (< ₹2.5 lakh) and intra-state sales to unregistered persons.
   • Example: Your neighbourhood grocery store sells ₹1,000 worth of snacks — classic B2C.

Why it matters:
Helps the government track retail consumption and ensures tax collection from everyday sales.

Example: B2B Invoice vs Retail Bill

Exports & SEZ Supplies in GSTR-1

Exports and SEZ supplies are treated as zero-rated supplies under GST  meaning tax rate = 0%, but with a twist: you can still claim benefits.

Exports in GSTR-1

Exports are considered outward supplies but reported separately since they are zero-rated.

Options for Exporters:

1. With IGST payment → Pay IGST on export invoice, later claim refund of IGST.
2. Without IGST (LUT/Bond) → Export without paying tax but claim refund of unutilized ITC.

Why it matters: Filing exports correctly ensures smooth refunds and avoids unnecessary GST department queries.

SEZ Supplies in GSTR-1

Supplies to SEZ units or SEZ developers are also treated as zero-rated supplies.

Things to note:

1. Can be made with IGST (refund route) or without IGST (LUT/Bond route).
2. Must have proper SEZ endorsement on invoice.

Why it matters: Wrong classification here can block your refund or lead to compliance notices.

Shipping Bill & Other Details

When filing GSTR-1 exports/SEZ supplies, you need to report:

1. Invoice number & date
2. Shipping Bill number & date
3. Port code
4. Export type (with or without IGST)

Quick Summary Table

Always double-check your Shipping Bill details before filing GSTR-1. A mismatch between GSTR-1 & ICEGATE = refund stuck!

Amendments in GSTR-1 (Corrections & Revisions)

Here’s the bitter truth: You cannot revise a GSTR-1 once filed.
But don’t panic—mistakes aren’t permanent. The GST system allows you to correct errors through amendments in subsequent months/quarters.

How Amendments in GSTR-1 Work

1. If you made a mistake in the invoice details, GSTIN, or place of supply, you can amend it in the next GSTR-1.
2. Corrections are reported in Table 9A, 9B, and 9C (depending on the nature of the amendment).
3. These amendments then flow to the recipient’s GSTR-2A/2B.

Example:
You wrongly entered “Karnataka” as Place of Supply instead of “Tamil Nadu.” → Correct it in the next GSTR-1 under Amendments to B2B supplies.

What You Can Amend in GSTR-1

Allowed:

1. GSTIN of recipient (if wrongly entered)
2. Invoice number & date
3. Taxable value & tax amount
4. Place of Supply (state code corrections)
5. Export details (Shipping Bill, Port code, etc.)
6. Debit/Credit note details

Not Allowed:

1. Period of filing (you can’t move invoices from one month/quarter to another)
2. Already accepted amendments can’t be changed again
3. Cancellations after due date

Place of Supply Amendments

1. Wrong state code = Wrong GST liability.
2. Correction must be made via amended invoice entry in GSTR-1.
3. Always double-check POS while uploading invoices to avoid ITC mismatch for your customer.

E-Invoice Editing

• If an e-invoice has been generated incorrectly, you cannot edit it directly in GSTR-1.
• First, cancel the e-invoice on the IRP (Invoice Registration Portal) within 24 hours.
• Then, generate a fresh e-invoice with correct details, which will auto-populate in GSTR-1.

Quick Summary Table

Always reconcile GSTR-1 with books of accounts monthly. It’s easier to amend sooner rather than later, before mismatches pile up.

Debit Notes & Credit Notes in GSTR-1

When business transactions don’t go as planned, wrong values, returns, or extra charges, you issue debit notes or credit notes. GSTR-1 has dedicated provisions for reporting these.

What’s the Difference?

Example:

• You billed a client ₹1,00,000 instead of ₹1,20,000 → Issue a Debit Note for ₹20,000.
• Customer returns defective goods worth ₹10,000 → Issue a Credit Note.

Reporting Rules in GSTR-1

1. Linked Reporting
   
   • Debit/Credit notes linked to original invoices must be reported against that invoice in GSTR-1.
   • The system adjusts tax liability accordingly.
2. Delinking of Credit Notes (New Rule)
   
   • From October 2022 onwards, credit/debit notes don’t have to be mandatorily linked to individual invoices.
   • You can report them on a consolidated basis, giving flexibility in filing.
3. Unregistered Persons (B2C Cases)
   
   • When customers are unregistered (no GSTIN), report debit/credit notes in a consolidated manner (not invoice-wise).
   • Example: Retailer issues 50 credit notes in a month → Report one consolidated credit note entry in GSTR-1.

Tables in GSTR-1

• Table 9B → For Debit Notes & Credit Notes (both B2B and B2C large).
• Table 9C → Amendments to debit/credit notes.

Always reconcile debit with GSTR-3B to avoid liability mismatches.

Nil GSTR-1 Filing

Not every business has sales in a given tax period. In such cases, you don’t skip filing—you file a Nil GSTR-1 return.

When is Nil GSTR-1 Applicable?

You must file a Nil GSTR-1 if, during a tax period:

1. No outward supplies (B2B/B2C/exports/SEZ).
2. No amendments to previous invoices.
3. No debit/credit notes issued.
4. No HSN summary or document details to report.

In short: If there are zero transactions, you file a Nil GSTR-1.

Step-by-Step: How to File a Nil GSTR-1 Online

1. Login → Go to www.gst.gov.in login.
2. Navigate → Services → Returns → Returns Dashboard.
3. Select Period → Choose the relevant filing month/quarter.
4. Prepare Online → Open GSTR-1 → System auto-detects no entries.
5. Submit & File → Tick "File Nil GSTR-1" → Proceed with DSC/EVC.

Done! Nil return successfully filed.

Filing Nil GSTR-1 via SMS Facility

The GST portal also allows filing through SMS, making it hassle-free for small taxpayers.

Format:

NIL<Space>R1<Space>GSTIN<Space>Tax period (MMYYYY)

Send to 14409

Example:

NIL R1 22AAAAA1234A1Z5 082025

You’ll receive a 6-digit code → Confirm with reply → Nil GSTR-1 filed instantly.

Quick Summary Table

Even if you had zero sales, skipping Nil GSTR-1 can invite late fees & penalties. Always file on time.

E-invoicing & GSTR-1 Auto-population

With the rollout of e-invoicing under GST, filing GSTR-1 has become much easier. Now, your invoices don’t need to be entered manually—thanks to auto-population in GSTR-1.

How E-invoices Auto-populate in GSTR-1

1. Once an invoice is generated on the Invoice Registration Portal (IRP), it gets assigned an IRN (Invoice Reference Number) and QR code GST.
2. These validated invoices are pushed directly into the GST portal.
3. During GSTR 1 online filing, these e-invoices show up automatically under the relevant tables.

No duplication, no re-typing—saves time and avoids mistakes.

Which GSTR-1 Tables Get Auto-filled?

In short: Most B2B, exports, and debit/credit note data flows in automatically.

Can You Edit Auto-populated Invoices?

Yes, but with conditions:

1. You can edit certain fields (like Place of Supply, tax rate corrections).
2. IRN and QR code fields cannot be changed—they are locked once generated.
3. If there’s a mistake in the original invoice, you must issue a debit/credit note instead of altering the IRN.

Always cross-check auto-populated data with your ERP/accounting records before filing to avoid mismatches.

Filing Process & Modes for GSTR-1

When it comes to how to file GSTR 1, businesses have multiple options—depending on convenience and transaction volume. Whether you prefer the GST portal GSTR 1 online filing, offline upload, or third-party automation, here’s how it works.

1. Filing via GST Portal (Step by Step)

The most common method for GSTR 1 online filing is directly through the GST portal:

1. Log in at www.gst.gov.in with your credentials.
2. Go to Services → Returns → Returns Dashboard.
3. Select the relevant financial year & return period.
4. Click on GSTR-1 → Prepare Online.
5. Enter invoice details, debit/credit notes, HSN summary, etc.
6. Save draft and review for errors.
7. Use DSC (Digital Signature Certificate) or EVC (Electronic Verification Code) to submit.

Best for small/medium businesses with manageable invoices.

2. Filing via Offline Tool (Excel/JSON Upload)

If you have a large volume of invoices, the offline tool is a lifesaver.

1. Download the GSTR 1 Offline Utility (Excel/JSON format) from the GST portal.
2. Enter invoices, outward supplies, HSN summary, and export details.
3. Generate a JSON file and upload it back on the portal.
4. Validate, preview, and file.

This method reduces portal downtime issues during peak filing dates.

3. Filing via ASP/GSP Software

Many businesses prefer third-party Application Service Providers (ASP) or GST Suvidha Providers (GSP).

1. ASP/GSP software integrates with ERP/accounting systems.
2. Automates invoice upload, reconciliation, and filing.
3. Reduces manual effort, especially for enterprises with thousands of transactions.

Ideal for big companies needing speed, compliance, and bulk processing.

4. DSC vs EVC – Which One to Use?

In short: Companies/LLPs must use DSC, while smaller businesses can complete their GSTR 1 filing process using EVC.

Always file GSTR-1 before the due date to avoid mismatches in GSTR-2B and late fees.

Prerequisites Before Filing GSTR-1

Before you jump into the GSTR 1 filing process, it’s crucial to have the right documents and details ready. Missing even one requirement can delay filing or cause errors in reconciliation. Here’s what you must keep handy:

1. GSTIN Requirements

1. A valid GSTIN (Goods and Services Tax Identification Number) is mandatory.
2. Ensure it is active and linked to your PAN.

2. Documents Required for GSTR-1

1. Tax invoices, debit notes, and credit notes for the relevant period.
2. Export invoices & shipping bills (if applicable).
3. Purchase register & sales register for cross-verification.
4. HSN/SAC codes for classification of goods/services.

3. Digital Verification Setup

1. Either a Digital Signature Certificate (DSC) (for companies/LLPs)
2. Or an Electronic Verification Code (EVC) linked to a registered mobile/email ID.

4. Invoice Numbering Rules

1. Invoice numbers should follow a sequential and consistent format.
2. No duplication allowed across financial years.
3. Correct numbering helps avoid mismatches during GST audits.

5. Proper Bookkeeping

1. Maintain updated books of accounts.
2. Ensure all outward supplies are correctly recorded.
3. Cross-check invoices with GSTR-2B & e-invoicing system (if applicable).

Always reconcile your invoices and e-invoices before filing to avoid future notices from the GST department.

QRMP Scheme & Invoice Furnishing Facility (IFF)

The QRMP scheme (Quarterly Return, Monthly Payment) is a lifesaver for small taxpayers under GST. Instead of filing GSTR-1 every month, you get to file it quarterly—but still keep your buyers happy with timely invoice reporting.

Benefits of the QRMP Scheme in GSTR-1

1. Reduced Compliance: File GSTR-1 just 4 times a year instead of 12.
2. Cash Flow Friendly: Pay tax monthly via challan without full return filing.
3. Buyer Satisfaction: Upload invoices monthly via IFF so buyers can claim ITC on time.

What is the Invoice Furnishing Facility (IFF)?

The IFF (Invoice Furnishing Facility) is an optional tool for QRMP taxpayers.

1. Available in the first 2 months of the quarter.
2. You can upload B2B invoices & credit/debit notes.
3. Helps your buyers see invoices in GSTR-2A/2B, ensuring seamless ITC claims.
4. No need to report B2C invoices in IFF (only included in final quarterly GSTR-1).

Final GSTR-1 in the Third Month

1. In the last month of the quarter, you must file the complete GSTR-1.
2. It includes:
   1. All B2B invoices (if not uploaded via IFF)
   2. B2C invoices
   3. Exports, nil-rated, exempt, and amendments
3. This ensures quarterly compliance is met without losing monthly ITC flow for buyers.

Quick Recap:

1. QRMP Scheme = Quarterly GSTR-1 filing.
2. IFF = Monthly invoice upload (for B2B) in the first 2 months.
3. Final GSTR-1 = Filed in 3rd month with full data.

Place of Supply in GSTR-1 (Including Foreign Country Code 96)

The Place of Supply (POS) is the backbone of GST reporting; it decides whether your supply is intra-state (CGST + SGST) or inter-state (IGST). Getting this wrong in GSTR-1 can mess up tax liability and input tax credit for both you and your buyer.

Domestic POS in GSTR-1

1. If supplier & buyer are in the same state → Intra-state supply → CGST + SGST.
2. If supplier & buyer are in different states → Inter-state supply → IGST.

Example:

1. Supplier in Delhi, buyer in Mumbai → POS = Maharashtra → Inter-state (IGST).
2. Supplier in Delhi, buyer in Noida (UP) → POS = Uttar Pradesh → Inter-state (IGST).
3. Supplier in Delhi, buyer in Delhi → POS = Delhi → Intra-state (CGST + SGST).

Foreign POS & Country Code 96

Exports are always treated as inter-state supplies under GST.

1. In GSTR-1, the system uses state code “96 – Foreign Country” for exports of goods and services.
2. This ensures that export invoices are auto-tagged as zero-rated supplies.

Example:

1. Export of IT services from Bangalore to USA → POS = Code 96 (Foreign Country).
2. Export of garments from Mumbai to Dubai → POS = Code 96 (Foreign Country).

Why It Matters in GSTR-1

1. Correct POS = Correct tax (IGST vs CGST/SGST).
2. Exports with Code 96 ensure you can claim:
   1. IGST refund (if paid with IGST).
   2. ITC refund (if exports made without IGST under LUT/Bond).

Key Takeaway:

1. Domestic POS → Decides intra vs inter-state.
2. Foreign POS → Always “Code 96 – Foreign Country” → Always inter-state → Always zero-rated.

UT Mergers & New GSTIN in GSTR-1

India’s GST system isn’t static when Union Territories (UTs) are reorganized or merged, taxpayers must adapt with new GSTINs and filing rules.

Special Cases You Should Know

1. Ladakh – After bifurcation from Jammu & Kashmir (2019), Ladakh taxpayers had to migrate to new GSTINs starting from a notified date.
2. Daman & Diu + Dadra & Nagar Haveli merger – These two UTs were merged in 2020, requiring fresh GSTIN allocation for businesses.

Filing with a New GSTIN

1. Invoices and returns after the merger must be filed using the new GSTIN only.
2. Old GSTINs become inactive for future filings.

Handling Old Invoices

1. Invoices issued under the old GSTIN (before the effective date of merger/reorganization) should be reported under the old GSTIN’s GSTR-1.
2. Invoices issued after the merger date must be uploaded under the new GSTIN.
3. Credit/Debit Notes linked to old invoices should still be reported using the old GSTIN return.

In short: Old invoices, old GSTIN. New invoices, new GSTIN.

Here’s your next section draft (17. Late Fees & Penalties for GSTR-1) in the same SEO-friendly, structured style:

Late Fees & Penalties for GSTR-1

Filing GSTR-1 late can burn a hole in your pocket. The GST law prescribes fixed late fees and interest charges so staying compliant isn’t just about avoiding notices, it’s about saving money.

Late Fee Slabs (Turnover-Wise)

1. Normal Taxpayers: ₹50 per day (₹25 CGST + ₹25 SGST).
2. Nil GSTR-1 (no outward supplies): ₹20 per day (₹10 CGST + ₹10 SGST).
3. Maximum cap:
   
   1. ₹5,000 per return for normal taxpayers.
   2. ₹500 per return for Nil filers.

Nil Return Late Fee

If you’ve got no outward supplies in a tax period, you still need to file a Nil GSTR-1. The late fee here is just ₹20/day, capped at ₹500.

Interest Charges (18% p.a.)

1. While GSTR-1 itself doesn’t attract interest (since it’s just reporting outward supplies),
2. Mismatch with GSTR-3B (e.g., delayed tax payment due to late invoice reporting) triggers 18% per annum interest on the tax liability.

Bottom line: File on time or pay the price.

Common Mistakes & How to Avoid Them

Even seasoned taxpayers slip up while filing GSTR-1. The problem? Small mistakes often lead to mismatches, notices, and penalties. Here are the most common errors and how you can dodge them.

Common GSTR-1 Mistakes

1. Wrong GSTIN entries – Invoicing to an incorrect GSTIN means your customer won’t get input tax credit (ITC).
2. Missing invoices – Skipping even a single invoice can cause GSTR-1 vs GSTR-3B mismatches.
3. Incorrect Place of Supply (POS) – A wrong POS can turn an intra-state supply into inter-state (or vice versa), leading to tax liability errors.
4. Duplicate entries – Re-reporting the same invoice inflates turnover and creates confusion.
5. Incorrect debit/credit notes – Linking notes improperly or forgetting to delink can cause system mismatches.

Practical Tips to Avoid Errors

1. Reconcile before filing – Always match your books of accounts with draft GSTR-1 data.
2. Use accounting software or ASP/GSP tools – They flag errors in GSTIN, HSN/SAC, and invoice duplication.
3. Cross-check POS codes – Verify state codes and use 96 (Foreign Country) only for exports.
4. Maintain proper invoice numbering – Consistency avoids rejections by the portal.
5. Preview before final submission – Download the GSTR-1 summary and check section-wise data.

Filing GSTR-1 isn’t about speed, it’s about accuracy. One mistake can snowball into ITC denial, notices, or penalties.

FAQs on GSTR-1

1. What is GSTR-1?

GSTR-1 is a monthly or quarterly return that captures details of all outward supplies (sales) made by a registered taxpayer under GST.

2. Who is required to file GSTR-1?

Every GST-registered person making outward supplies must file GSTR-1, except composition dealers, non-resident taxpayers, and input service distributors (ISD).

3. What is the due date for filing GSTR-1?

1. Monthly filers: 11th of the following month.
2. Quarterly filers (QRMP): 13th of the month after each quarter.

4. Can I file GSTR-1 if I have no sales?

Yes. You must file a Nil GSTR-1 return even if there are no transactions during the tax period.

5. How do I file a Nil GSTR-1 return?

Nil GSTR-1 can be filed online via the GST portal or using the SMS facility by sending a simple text in the prescribed format.

6. What happens if I don’t file GSTR-1 on time?

Late filing attracts late fees and penalties, and your buyer will not be able to claim ITC on invoices not reported.

7. What is the penalty for late filing of GSTR-1?

1. ₹50 per day (₹25 CGST + ₹25 SGST).
2. For nil returns: ₹20 per day (₹10 CGST + ₹10 SGST).
   Interest at 18% p.a. may also apply.

8. Can I revise a GSTR-1 return after filing?

No, once filed, GSTR-1 cannot be revised. Errors must be corrected in the next month/quarter’s GSTR-1.

9. How do e-invoices reflect in GSTR-1?

If you generate e-invoices, details auto-populate into relevant tables of GSTR-1 using the IRN and QR code.

10. What is the difference between GSTR-1 and GSTR-3B?

GSTR-1 reports sales invoices, while GSTR-3B is a summary return showing tax liability and ITC adjustments.

11. What are the prerequisites for filing GSTR-1?

You need a valid GSTIN, invoice details, DSC/EVC, registered mobile/email ID, and updated books of accounts.

12. Can I file GSTR-1 offline?

Yes. You can prepare GSTR-1 using the offline Excel/JSON tool and upload it to the GST portal.

13. What is the Invoice Furnishing Facility (IFF) in QRMP scheme?

IFF allows taxpayers under QRMP to upload invoices for the first 2 months of a quarter so their buyers can claim ITC without waiting for the full quarter.

14. How is Place of Supply (POS) reported in GSTR-1?

POS must be correctly entered for each invoice. For exports, state code 96 (Foreign Country) must be used, and it’s always treated as inter-state supply.

15. Do I need to file GSTR-1 if my turnover is below ₹20 lakh?

No, if your turnover is below the GST threshold and you are not voluntarily registered, you are exempt. But if you hold a GSTIN, filing GSTR-1 is mandatory.