37.1.1 Furnishing of details of Outward Supplies in GSTR-01 for each tax period on or before 10^th of next month

Question-1 [ICSI-E-J21-81-1]

Atul & Co. is a partnership firm engaged in manufacturing activity. For the outward supplies made in the month of January, 2021, what is the due date for filing GSTR-1 ?

(A) 05.02.2021; (B) 11.02.2021; (C) 10.02.2021; (D) 20.02.2021

Question-2 [ICAI-I-M19-O-9(b)(i)-1]

Mr. Kolly is registered supplier in the State of Gujarat. He is filing GSTR 1 every month. During the month of Feb,2018 he was out of India and so did not do any transaction during the month. He believes that as there is no transaction there is no need to file GSTR 1 for the month of Feb, 2018. Is he correct?

Answer

No, Mr. Kolly is not correct.

GSTR-1 needs to be filed even if there is no business activity (Nil Return) in the tax period. Therefore, in the given case, even though Mr. Kolly was out of India and thus had not done any transaction during February 2018, he is still required to file GSTR-1 for the said month.

Question-3 [ICAI-I-M19-O-9(b)(ii)-2]

Mr. Kaji is a registered dealer in Kerala. He was registered as a normal tax payer for FY 2017-18. But on 15-01-2018, he converted from normal tax payer to composition tax payer. Is he liable to file GSTR-1 for the month of February,2018?

Answer

A person paying tax under composition scheme is not liable to furnish the details of outward supplies in GSTR-1.

Further, in cases where a taxpayer has been converted from a normal taxpayer to composition taxpayer, GSTR-1 is to be filed only for the period during which the taxpayer was registered as normal taxpayer.

Therefore, in the given case, Mr. Kaji is not liable to file GSTR-1 for February,2018 since he had already shifted to composition scheme on 15.01.2018.

31.2.1 Position of Quarterly GSTR-1 before 01-01-2021

Question-1 [ICMAI-I-J19-3(b)-5]

Chanakya Agencies is a registered supplier of household products under regular scheme. Its aggregate annual turnover was Rs.30 lakh in the financial year 2017-18. It is of the view that in the current financial year, it is allowed to file its monthly statement of outward supplies- GSTR-1 on a quarterly basis. However, a fellow trader advises that it can file the same only on a monthly basis.

You are required to advise Chanakya Agencies on the same.

During a given tax period in the current financial year, owing to an off-season, Chanakya Agencies has not made any taxable supply. Therefore, Chanakya Agencies is of the view that no return under GST is required to be filed for the said period.

You are required to examine the correctness of the opinion of Chanakya Agencies.

Answer

Filing of GST returns: Section 37 of the CGST Act, 2017 stipulates that GSTR-1 for a particular month is required to be filed on or before the 10 day of the immediately succeeding month, i.e. on a monthly basis.

However, presently, as a measure of easing the compliance requirement for small tax payers, GSTR-1 has been allowed to be filed quarterly by small tax payers with aggregate annual turnover up to Rs.1 crore in the preceding financial year or the current financial year. Tax payers with annual aggregate turnover above Rs.1 crore will however continue to file GSTR-1 on a monthly basis.

In view of the same, Chanakya Agencies can file its GSTR-1 on quarterly basis as its aggregate turnover does not exceed ` 1 crore in the preceding financial year.

Further, GSTR-1 needs to be filed even if there is no business activity in a tax period.

Thus, in the given situation, even if no supply has been made by Chanakya Agencies, a nil return is required to be filed for the relevant tax period.

Note: The aggregate turnover limit for small taxpayers is considered here Rs.100 lakhs instead of Rs.150 lakhs, as the amendment notification no. 14/2019 CT, dt. 07.03.2019 (increasing limit to ` 150 lakhs), has come into force on the 1st day of April, 2019, hence not to be considered here.

37.4.1 Contents of outward supplies in GSTR-1

Question-1 [ICAI-I-N20-7(c)-3]

"In Form GSTR-1, submission of invoice-wise details of outward supplies is mandatory for all kind of invoices issued during the tax period."

Comment on the validity of the above statement with reference to GST laws.

Answer

The said statement is not valid. In respect of following outward supplies, consolidated details and not invoice-wise details are required to be uploaded in the GSTR-1:

(a) Intra-State supplies made to unregistered persons for each rate of tax

(b) Inter-State supplies made to unregistered persons with invoice value upto Rs.2,50,000 for each rate of tax separately for each State.

Question-2 [ICAI-I-N18-O-12(a)-5]

What kinds of invoice details of outward supplies are required to be furnished in GSTR-1 for outward supplies?

Answer

The invoice details of outward supplies required to be furnished in GSTR-1 are-name of Buyer, GST N of buyer, invoice no., date, value, taxable value, rate of tax, amount of tax, HSN code in respect of supply of goods, accounting code in respect of supply of services and place of supply.

Further, following invoice details of outward supplies are required to be furnished invoice-wise in GSTR-1

(i) intra-State supplies made to the registered persons

(ii) inter-State supplies made to the registered persons;

(iii) inter-State supplies made to unregistered persons with invoice value exceeding Rs.2,50,000

Note: The question may be answered either on the basis of invoice details of outward supplies required to be furnished in GSTR-1 or on the basis of invoice details of outward supplies required to be furnished invoice-wise in GSTR-1.

37.5.1 Time Limit for Rectification of Outward Supplies

Question-1 [ICAI-F-M18-5(c)-5]

Mr. Anand Kumar, a regular taxpayer, filed his return of outward supply (GSTR-1) for the month of August, 2017 before the due date. Later on, in February, 2018 he discovered error in the GSTR-1 return of August 2017 already filed and wants to revise it.

You are required to advise him as to the future course of action to be taken by him according to statutory provisions.

Answer

The mechanism of filing revised return for any correction of errors/omission is not available under GST. The rectification of errors/omission is allowed in the subsequent returns.

Therefore, Mr. Anand Kumar who discovered an error in GSTR-1 for August, 2017, cannot revise it. However, he should rectify said error in the GSTR-1 filed for February, 2018 and should pay the tax and interest, if any, in case there is short payment, in the return to be furnished for February, 2018. The error can be rectified by furnishing appropriate particulars in the “Amendment Tables” contained in GSTR-1.

However, as per section 37(3) of the CGST Act, 2017, no rectification of details furnished in GSTR-1 shall be allowed after:

(i) filing of monthly return/ GSTR-3 for the month of September following the end of the financial year to which such details pertain or

(ii) filing of the relevant annual return whichever is earlier.

Question-2 [ICSI-P-D17-6(a)-5]

Explain the procedure of furnishing details of outward supplies and of revision for rectification of errors and omissions as per CGST Act, 2017.

Answer

Due date : Every Registered taxable person (other than an Input Service Distributor, a non- resident taxable person and a person paying tax under section 10 (composition scheme) or section 51 (TDS) or section 52 (TCS) by e- commerce operator) shall furnish —

• electronically details of outward supplies of goods or services or both effected during the tax period

• by 10th of the month succeeding the tax period.

2. Contents :

Details of outward supplies will include invoice relating to zero rated supplies, inter-state supplies, intra state suppliers, Goods/ Services return, Exports, Supplementary invoices, debit notes and credit notes

3. No revision, but, rectification allowed in subsequent returns :

• Once return is filed / uploaded it cannot be revised. The mechanism of filing revised returns for any correction of errors / omissions has been done away with. The rectification of errors/ omissions is allowed in the subsequent returns.

• However, no rectification is allowed after furnishing the return for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.

37.6 GSTR-1 shall not be allowed to be furnished in following cases

Question-1 [ICAI-I-N22-8b-5]

List the details of outward supplies which can be furnished using Invoice Furnishing Facility (IFF).

Also briefly list the cases where a registered person is debarred from furnishing details of outward supplies in GSTR-1/IFF.

Answer

Details of outward supplies which can be furnished using IFF are as follows:

(a) invoice wise details of inter-State and intra-State supplies made to the registered persons;

(b) debit and credit notes, if any, issued during the month for such invoices issued previously.

Cases where a registered person is debarred from furnishing details of outward supplies in GSTR-1/using IFF:

(i) A registered person is not allowed to furnish Form GSTR-1, if he has not furnished the return in Form GSTR-3B for the preceding 2 months2/ for the preceding 1 month3.

(ii) A registered person, opting for QRMP (Quarterly Return Monthly Payment) scheme is not allowed to furnish Form GSTR-1/using IFF, if he has not furnished the return in Form GSTR-3B for preceding tax period.

37.6.1 GSTR-1 shall not be allowed to be furnished if any previous tax period GSTR-1 is pending

Quesiton-1 [ICAI-I-M19-O-9(b)(ii)-1]

Mrs. Zeel a registered dealer in Rajasthan did not file GSTR 1 for the month of June, 2018 but she wants to file GSTR1 for the month of July, 2018. Is it possible?

Answer

Wef 01-10-2022, section 37(4) has been introduced, which provides that RP shall not be allowed to furnish GSTR-1 u/ss (1) for a tax period, if GSTR-1 for any of the previous tax periods has not been furnished by him.

Hence Mrs. Zeel can not file GSTR-1 for July 2018 is GSTR-1 of Jun-18 not filed

Old Provision

There is no specific bar under the law on filing of GSTR-1 for current month when GSTR-1 for the previous month has not been filed.

Therefore, in the given case, Mrs Zeel can file GSTR-1 for July, 2018 even though she has not filed GSTR-1 for the preceding month, i.e., June, 2018.

Note: Question specifies that Mr. Kaji has converted from normal taxpayer to composition tax payer on 15.01.2018. However, as per rule 4(1) of the CGST Rules, 2017, the option to pay tax under composition scheme shall be effective from the beginning of the financial year, where the intimation is filed by any registered person who opts to pay tax under section 10. Further, as per rule 3(3A) of the CGST Rules, 2017, a person who has been granted certificate of registration under sub-rule (1) of rule 10 may opt to pay tax under composition scheme with effect from the first day of the month immediately succeeding the month in which he files an intimation on the common portal on or before the 31st day of March, 2018.

37.7 Furnishing of GSTR-1 before due date

Question-1 [ICAI-I-M22-7c-3] [ICAI-I-N18-11(c)-2]

"All taxpayers are required to file GSTR-1 only after the end of the current tax period." Comment on the validity of the above statement with reference to GST law.

Answer

Statutory Provision

(a) Section 37(1) - GSTR-1 must be furnished on or before 10^th of the month succeeding the said tax period.

Conclusion

The statement is partially valid.

A taxpayer cannot file Form GSTR-1 before the end of the current tax period. However, following are the exceptions to this rule:

a. Casual taxpayers, after the closure of their business

b. Cancellation of GSTIN of a normal taxpayer.