You might know GSTR 1; however, do you know what is required in GSTR 1 filing? Let us say you know that. Do you know what the mandatory details are? So many questions, isn’t it? These challenges are accompanied by finding ways to furnish data and populate the GSTR 1 return form. Every step matter in this process; hence, you must be mindful of data quality, efficiency, and accuracy. Let us unravel every invoice-wise detail in GSTR1 return filing and understand how to file it independently. In doing so, we will also learn about the compliance of data and ways by which the process could be streamlined.
Mandatory invoice details for GSTR-1
GSTR-1 contains 13 tables and sections. However, each of the sections has its own importance. However, the mandatory areas are Tables 1, 2, 3, 12 and 13.
Table 1: GSTIN
You must put your 15-digit GST identification number.
Table 2: Taxpayer’s name
- The registered legal name of the person
- Trade name, if any
Table 3: Taxpayer’s turnover
In this section, the aggregate turnover of the taxpayer for the previous financial year and the 1st quarter of the current financial year must be reported.
- Only in the first year, this information is required.
- The information about the quarters is optional in the subsequent return.
- The aggregate turnover will be auto-populated in the coming years.
Table 12: HSN-wise summary of outward supplies
You will have to provide the HSN-wise summary of goods sold. It will also include the details of the total quantity you have sold, the taxable value under the tax bracket and the UQC (Unit Quantity Codes) applicable for the goods, imported or exported.
Table 13: Documents issued during the tax period
In this section, you will find 12 types of documents being mentioned, and you will have to accurately add details of those documents in this table.
How do we populate GSTR-1 with invoice data?
Fill out the GSTR-1 form with the invoice data. Firstly, you will have to download the GST offline tool. After that, you must follow the following steps discussed below:
Step 1: Double click and open the offline tool
Step 2: Click the NEW button
Step 3: Select the GSTR 1 or one option from the GST Statement/Returns drop down list.
Step 4: Enter your GSTIN
Step 5: Select the financial year from the financial year drop down list
Step 6: The tax period for which you are paying the return should be selected from the Tax Period drop down list
Step 7: Enter your aggregate turnover in the preceding year in the Aggregate Turnover in the preceding Financial Year field
Step 8: Enter the aggregate turnover for the quarter in the Aggregate Turnover section.
Step 9: Click PROCEED button.
When you would have downloaded the offline application, an Excel Workbook will also must have been downloaded as well. This Excel workbook is required to be filled up with the invoice data.
Now, to upload the invoice data, there are four options:
|Manual entry process
|Import the full Excel workbook
|Copy and paste the data from Excel workbook
|import CSV file
|Step 1: Select the applicable section from the Select Section drop down list
Step 2: Enter the invoice details
Step 3: Click the plus icon on the right-hand side highlighted under the ACTIONS column to fill details of the item for the invoices
Step 4: Add Items page will be showed. You will have to provide the specific details and then click the Save button.
Step 5: You will see that the invoices have been added. You will have an EDIT button and a DELETE button to edit your information and delete them as well.
|Step 1: Fill up the different tabs in the excel template provided to you.
Step 2: Click the input files button in the return’s application
Step 3: Click IMPORT EXCEL button.
Step 4: Select the excel workbook template (in case you have more than 19,000 lines of data, you will have to upload the same Excel workbook multiple times)
Step 5: A warning dialogue box will appear click YES
Step 6: A message will be displayed. If you click the back button, you will find that all the changes that happened in the screen.
Step 7: Click EDIT, or DELETE button whenever you want to make changes or delete them
|Step 1: Open the excel workbook that you have provided the invoice data with
Step 2: Copy each data from the excel sheet. Use the shortcut Ctrl + key
Step 3: Click the input files button
Step 4: Click the select section drop down list their select, select the area for which you want to upload the invoice
Step 5: Click the COPY EXCEL button
Step 6: Paste the data in the copy and paste excel dialogue box
Step 7: Click the PROCEED button and then click YES
Step 8: A message will be showed and you can use the back button to access the information
Step 9: You can use the EDIT or DELETE button to make changes
|Step 1: Create the .CSV file for your return section
Step 2: Click the IMPORT FILES button
Step 3: Click the select section drop down list
Step 4: Click IMPORT .CSV button
Step 5: Select the CSV file from the dialogue box opened
Step 6: Click the YES button
Step 7: A message will be showed and you can click the BACK button view the populated screen
Step 8: Click EDIT or DELETE button to make changes
Step 9: You can click the VIEW SUMMARY button to check the entries
Step 10: Click the GENERATE FILE option
Step 10: Click the SAVE option from the file download dialogue box
Step 11: Login to the gst.gov.in URL
Step 12: The FILES RETURNS page will be showed
Step 13: Provide the necessary information and click OPEN button.
Still 14: Upload the .JSON file.
Step 15: A Reference ID will be showed
Step 16: Click FILE RETURN
Why is the accuracy and completeness of invoice details important?
Correct information of the outward supplies must be provided under the correct GST head. There could be several situations where the registered person has given the details of the outward supplies under the wrong head. Such kind of mistakes must be avoided while filing the GSTR-1 return. While you are furnishing, the invoice details, keep in mind that in case there is invoice details, names, and other information is crucial to be furnished manually. This will improve your accuracy and completeness, thereby reducing the chances of committing any kind of mistake.
Ensure that all the mandatory information which includes the GSTIN, invoice number, state, and other details have been precisely entered. It is important to record the invoices in a sequential numbering method. Since uploading of invoices might result in error, therefore, while recording the invoices you should be mindful about. The format of the provided excel workbook should be adhered too. Accuracy of data while filing is extremely important because in case of any errors, it might lead to penalties or return might be rejected.
Compliance with invoice-wise reporting requirements
The compliance of GSTR-1 filing is based on the type of invoices which could be B2B and B2C. In B2B invoices, the customer who is the registered person will be eligible for the Input Tax Credit (ITC). Also details of both inter and intra state supplies must be uploaded while filing the GSTR-1 return. In case of B2C transactions, the customer who is an unregistered person in this case will not be eligible for the Input Tax Credit. In this case, the consolidated details for inter and intra state sales for each of the tax rate with an invoice below of ₹2.5 lakhs should be uploaded during the GSTR-1 return based on each tax rate. In the case of large invoices, all the transactions that exceeds the value of ₹2.5 lakhs must be uploaded.
Difference between B2B and B2C in GSTR1 transaction and how to comply on that:
- In B2B transaction, both the name and the address of the recipient is required whereas in B2C transaction the name of the recipient is required only.
- For B2B transactions, Input Tax Credit can be availed on the GST paid whereas in B2C, there is no Input Tax Credit.
- B2B transactions will generally have a higher rate of GST in comparison to the B2C transactions.
Streamlining invoice data management for GSTR-1
Streamlining and organising invoice data for the GSTR-1 filing is extremely crucial. To prevent oneself from getting penalised due to incorrect or insufficient data submission, one needs to follow the recommendations mention below:
- Create a centralised storage system where you will be able to access all the invoices efficiently.
- You can use an accounting software that might help you to reduce any kind of errors in data.
- Make sure you have a proper naming convention so that any of the invoices received from a customer repeatedly is being recorded on their own name.
- Invoice categorisation is very important where you can use sorting based on dates and provide numeric tags as well.
- Keep a habit of regularly entering the invoice data so that you do not miss recording it.
- Always have a backup and data security so that in case you lose your invoice data, you can retrieve it easily.
- If you have employees taking care of invoices, ensure that they have been trained properly.
- To ensure accuracy, you must check up with the financial records on a regular basis
- Tracking the changes in invoice data is vital, thus auditing the data can be beneficial.
- Finally, ensure that you have automated reminders for filing the GSTR-1.
Filing the GSTR-1 return requires a strategic implication from the side of the businesses. It is not just a frugal task rather it demands a great deal of accurate understanding and furnishing of data. To toggle through the nuanced processes of filing return you will have to understand the process by which you can efficiently and with an assured way to populate data. The focal point of filing the invoice data is the availability and storing of data that is required to be done diligently. Now you might think that it is a tedious process hence, hiring a GST practitioner could be more efficient however, in this heaving digitized world you can do it by yourself if you follow the above said things.
What are the invoice details that are mandatory while filing GSTR-1?
Taxpayers’ names, GSTIN, HSN invoice summaries, and other documents that have been issued during this period.
How to populate the GSTR-1 with invoice data?
First, download the off-line tool and then fill out the form after which you have to upload the invoices which can be done using four different methods discussed in the blog.
Why is it important to be complete and accurate while filing the invoice details?
It might either lead to errors that might lead to penalties or create problems while generating the Input Tax Credit.
What is the difference between B2B and B2C invoice details?
B2B will need the name of the recipient and its addresses whereas B2C will only requiring the name of the recipient. Input Tax Credit’s applicability is for B2B transactions and not B2C.
How to streamline the data management for invoices?
To use a centralised system, implement some conventions and you can also use some numeric tag.