In this technology-savvy realm, today, compliance with GST rules is hassle-free. But the taxpayer must take steps to ensure that all the information needed to file the returns is ready and kept on hand before filing. Generating and checking the customer-wise summary is crucial for every taxpayer to monitor them for inconsistencies, take corrective action at the earliest, and avoid non-compliance.
All normal and casual registered taxpayers making outward supplies, other than an input service distributor, composition taxpayer, persons liable to deduct tax under Section 51, and persons liable to collect tax under Section 52 are required to file the statement of outward supplies. This statement comprises the details of outward supplies of goods and/or services during a tax period. It must be filed electronically on the GST Portal. The mode of preparing the return is through online entry in the GST portal, uploading the data using the returns offline tool or by using third-party application software of ASPs (application software providers) through GST Suvidha providers (GSPs). To file GSTR-1, the taxpayer must upload the details of all the invoices issued during the tax period.
Furnishing Invoice details in GST
As per Section 31 of the CGST Act, 2017, it is mandatory for all businesses that supply goods and services to issue an invoice or bill of supply for every supply of goods or services, or both. The type of invoice to be issued depends on the category of registration of the person making the supply and the person who receives the supply. Registered persons dealing in exempt supplies or registered under the composition scheme are required to issue a bill of exchange in lieu of tax invoice. The invoice must contain a description, quantity, and value of goods, the tax charged thereon, and such other particulars as specified in the GST rules. A tax invoice under GST is an important document. It is evidence of the supply of goods, services, or both, and it is also a crucial document for the recipient to avail of input tax credit. It is a primary document evidencing the supply of goods and services by the supplier.
Consumer types in GST
It is important to classify the consumers into B2B, B2C, small invoices, and large invoices, as this data is required while filing GSTR-1. Let us understand the different invoice types:
Business-to-business or B2B invoices
In a business-to-business transaction, the consumer is also registered with GST and is eligible to claim input tax credit (ITC). The supplier must report the invoice-wise details of both interstate and intrastate supplies in GSTR-1. The invoice details that must be furnished include the GSTIN of the consumer, invoice number, invoice date, taxable value, rate of tax, amount of tax, and invoice value.
Business-to-consumer or B2C small invoices
In a business-to-consumer (B2C) small invoice transaction, the consumer is an unregistered person and not eligible to avail of ITC. In such transactions, the consolidated details of interstate transactions of invoice values of up to Rs. 2,50,000 and intrastate transactions tax-wise must be uploaded in the GSTR-1 return.
Business-to-consumer (B2C) large invoices
In a business-to-consumer (B2C) large invoice transaction, the invoice value is more than Rs. 2,50,000. The consumer is an unregistered person and not eligible to avail of ITC. For such transactions, the invoice-wise details of inter-state supplies with an invoice value greater than Rs. 2.5 lakhs must be uploaded.
How to upload invoices in GSTN
Taxpayers can upload the invoice data in GST portal manually by logging into their GST account. It involves the following steps:
Login to GST portal with valid credentials
Select the month pertaining to the invoice upload
Click GSTR-1 and click Prepare Online.
Upload B2B invoice details. The details of all invoices that suppliers’ issue must be entered here, manually. This method is suitable when the number of invoices is low. Multiple invoices can take more time to upload with this method.
Upload large B2C invoices.
Upload details of credit and debit notes
If the number of invoices exceeds 500, then the taxpayer must use the offline tool for furnishing invoice details in GST
After entering all the details, the taxpayer must scroll down to the bottom of the GSTR-1-Details of Outward Supplies of Goods and Services page and click on the ‘generate GSTR-1 summary’ option. The summary will include the auto-drafted entries pending action from the recipients. The invoices added will be reflected in the relevant fields of GSTR-1. The summary is generated by the GST portal automatically at an interval of 30 minutes. . If the invoices are not visible in the summary, it means that the validations have failed and the invoices have been. rejected. An error log for the rejected After rectifying the errors, the invoices can be resubmitted. The taxpayer can modify or delete the invoices already uploaded. As the return is in draft mode, changes are allowed until the GSTR-1 is submitted.
E-invoicing system in GST
The B2B invoices are authenticated electronically in the e-invoicing system by GSTN for further use on the common GST portal. The invoice registration portal (IRP) issues a dentification number for every invoice that is entered. The e-invoice information is transferred from the e-invoice portal to the GST portal and e-way bill portal in real-time. This eliminates the need for manual data entry while filing GSTR-1, as the IRP directly passes the information.
Auto-population of e-invoice details in form GSTR-1
The data from the e-invoices gets auto-populated in the following tables in GSTR-1:
- B2B Invoices: Tables 4A, 4B, 4C, 6B, 6C
- Export Invoices-Table-6A
- Credit and debit notes (registered): CDNR-Table-9B
- Credit and debit notes (unregistered): CDNUR-Table-9B
Editing e-invoice details
The auto-populated e-invoice details in GSTR-1 can be edited by going to dashboard>returns>form GSTR-1/IFF: B2B or whichever invoice that taxpayer wants to edit, clicking on the edit icon available under the actions column, and saving.
To update the changes, the taxpayer must click on edit > change details > save record, and then click on ‘generate summary’ in the GSTR-1 form to update the details.
Downloading and viewing e-invoice details in form GSTR-1
Taxpayers can download the e-invoice details that get auto-populated in Form GSTR-1 by clicking on the ‘download details from e-invoice (excel) button available at the bottom of Form GSTR-1. For zero records, the message ‘no records available for download ‘is displayed. In cases of less than 500 records, the Excel sheet gets downloaded instantly. In cases of more than 500 records, the system takes more time to generate. After the download is complete, the file will appear in the ‘e-invoice download history’. To view the downloaded file, the taxpayer has to click on the option ‘e-invoice download history’ button on the GSTR-1 page.
Offline mode of filing GSTR-1
When there are many invoices to be reported, the offline tool is very convenient. Further it is mandatory to use the offline tool when there are more than 500 invoices to report as per GST rules. The steps involved in filing GSTR-1 in the offline mode are as follows:
The first step is to login to the GST portal with valid credentials
Then navigate to services>returns>returns dashboard from the drop-down menu.
Select the tax period from the drop-down menu and click on search
Under GSTR-1 section, click on ‘prepare offline’ to start the offline process
Proceed to ‘download’ tab at the top and click on ‘generate file’. It may take 20 minutes to generate the file.
Click on ‘download GSTR-1’. A zip file will be generated, and you can extract the file. The extracted file will contain Excel sheets in which you must enter the data. After completion, the JSON file created through the offline tool must be uploaded to the GST portal. The data gets populated in the relevant fields. If there are any invoices missing, you must check the error file. After rectifying the errors, the file can be again uploaded to the portal. The summary will be created. You can check the summary for accuracy before finalizing the GSTR-1 return.
How to download the filed GSTR-1
For documentation purposes and as proof of filing the return, the taxpayer must download the filed GSTR-1 and store it safely so that he can produce it when the tax authorities ask for it for verification. The steps involved in downloading the GSTR-1 file are as follows:
Visit the GST portal and login with valid credentials
Navigate to services>returns>view filed returns
Choose the relevant options like financial year, return filing period, and return type, then click on search
The list of returns that you have filed will be displayed. You must select GSTR-1 and click on View.
A preview of the filed return will get displayed. You can click the download option and the file will get downloaded as a pdf file.
Thus, by downloading and viewing the summary of GSTR-1, the taxpayer can get the consumer-wise summary. This summary is important for the taxpayer to match with his books of account and check for any discrepancies or outstanding balances. Filing accurate and timely returns is part of compliance. Delays in filing or non-filing can lead to penalties and other avoidable consequences.
Also Read: How do I get a GST Summary?
Frequently asked questions
Do I need to report debit notes while filing GSTR-1?
Answer: Debit notes must be reported in GSTR-1 in the month in which they are issued.
Should I report the credit notes in GSTR-1?
Answer: Credit notes must be reported in GSTR-1 in the month in which they are issued.
Are the debit notes and credit notes of suppliers to consumers reported separately?
Answer: No, they can be reported in a consolidated manner by netting off the debit and credit values.
How are exports treated in the GST regime?
Answer: Exports are treated as zero-rated inter-state supplies. The exporter has the option to export without payment or pay the integrated tax and claim a refund of ITC against the exports made after affecting the exports.