Section 37 provides for furnishing of details of outward supplies in GSTR-1.

All the returns under GST laws are to be filed electronically. Taxpayers can file the statements and returns by various modes.

Section 37(1) read with [1][Rule 59(1)

RP, other than

an ISD,

a NRTP and

a person paying tax u/s 10 or 51 or 52 and

person referred to in section 14 of the IGST Act

shall furnish electronically in GSTR-1 for the month or the quarter

details of outward supplies effected during a tax period

on or before 10^th of the month succeeding the said tax period

For meaning of tax Period, refer [Section 2(106)]

Due date of submission of GSTR-1

Monthly GSTR-1 must be furnished on or before 10^th of the month succeeding the said tax period

Ex: The details of outward supplies of Oct month shall be furnished on or before 10th Nov.

Who is required to furnish the details of outward supplies?

GSTR-1 are required to be furnished by every RP including casual registered person except the following

a) Input service distributor (ISD)

b) Non-resident taxable person (NRTP)

c) Person paying tax 10 [Composition Dealer] or 51[Deducting TDS] or 52[Collecting TCS]

d) Supplier of Online Information and Database Access or Retrieval Services (OIDAR) u/s 14 of the IGST Act

GSTR-1 may be furnished monthly or quarterly.

GSTR 1 needs to be filed even if there is no business activity (Nil Return) in the tax period.

Taxpayer opting for voluntary cancellation of GSTIN has to file GSTR-1 for active period.

In cases where a taxpayer has been converted from a normal taxpayer to composition taxpayer, GSTR-1 will be available for filing only for the period during which the taxpayer was registered as normal taxpayer. The GSTR-1 for the said period, even if filed with delay would accept invoices for the period prior to conversion.

Question & Answer

Section 2(83)

Outward Supplies” means

in relation to a taxable person, means

supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business.

Explanation to Section 37(1)

For the purposes of this Chapter, the expression “details of outward supplies” shall include details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during any tax period.

[2][1^st Proviso to Section 37(1)

RP shall not be allowed to furnish GSTR-1 during 11^th to 15^th of the month succeeding the tax period

Practically, there is no such restriction is applicable in GST Portal.

As a measure of easing the compliance requirement for small tax payers, quarterly GSTR-1 was allowed through special procedures u/s 148 for RP’s whose aggregate annual turnover is up to Rs.1.5 crore in the preceding FY or the current FY.

However wef 01-01-2021, Quarterly GSTR-1 option has been provided in Rule 59 by Notification No. 82/2020-Central Tax dt. 10-11-2020.

Before 01-01-2021, Quarterly GSTR-1 option was provided by Central Government through special procedure u/s 148.

Vide various notifications, CG has given option of Quarterly GSTR-1 for the period July-17 to Sep-20

Refer all notifications issued u/s 148 for quarterly GSTR-1

Question & Answer

GSTR-1 has been allowed to be filed quarterly by small taxpayers with aggregate annual turnover up to Rs.5 crore in the preceding FY under Quarterly Return Monthly Payment Scheme [QRMP Scheme]. The facility has been given from the quarter starting from January 2021.

For eligible RPs and conditions for Quarterly Return monthly payment (QRMP), please refer para 39.1.1

[3][Rule 59(2)

RPs required to furnish return for every quarter under proviso to section 39(1) and if considered necessary

he may furnish the details of such outward supplies, for 1^st & 2^nd months of a quarter, up to a cumulative value of Rs.50 lacs in each of the months,- using invoice furnishing facility (“IFF”)

duly authenticated in the manner prescribed under rule 26,

from 1^st to 13^th day of succeeding to first and second months of the Quarter.

Invoice Furnishing Facility (IFF) is a facility provided to quarterly taxpayers who are in QRMP scheme, to file their details of outward supplies in first two months of the quarter, to pass on the credit to their recipients.

IFF is not mandatory, but an optional facility made available to the RPs under the QRMP scheme.

[4][Rule 59(3)

The details of outward supplies furnished using the IFF, for 1^st and 2^nd months of a quarter,

shall not be furnished in GSTR-1 for the said quarter.

Ex

A RP who has availed the QRMP scheme wants to declare 2 invoices out of the total 10 invoices issued in the 1^st month of quarter since the recipient of supplies covered by those 2 invoices desires to avail ITC in that month itself. Details of these 2 invoices may be furnished using IFF.

The details of the remaining 8 invoices shall be furnished in GSTR-1 of the said quarter. The two invoices furnished in IFF shall be reflected in GSTR-2B of the concerned recipient of the 1 st month of the quarter and remaining 8 invoices furnished in Form GSTR-1 shall be reflected in Form GSTR-2B of the concerned recipient of the last month of the quarter.

As per section 37(1), GSTR-1 must be furnished on or before 10^th of the month succeeding the said tax period.

However following dates has been extended for GSTR-1

2^nd and 3^rd Proviso to Section 37(1)

2^nd Proviso - Commissioner may by notification extend the time limit for furnishing GSTR-1 for such class of taxable persons as may be specified therein:

3^rd Proviso - Any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

As per notification 83/2020 - Central Tax dated 10-11-2020, due date of GSTR-1 from Oct-20 onwards for

Monthly GSTR-1 = 11th day of the month succeeding such tax period

Quarterly GSTR-1 = 13th day of the month succeeding such tax period

List of all notification which extends due dates of GSTR-1.

Proviso to Rule 59(2)

[5][1^st Proviso = IFF for the month of April, 2021 = 28-05-2021]

[6][2^nd Proviso = IFF for the month of May, 2021 = 28-06-2021]

[7][Rule 59(4)

The details of outward supplies furnished in GSTR-1 shall include the–

(a) invoice wise details of all –

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

(ii) inter-State supplies with invoice value more than Rs.2.50 lacs made to the unregistered persons;

(b) consolidated details of all –

(i) intra-State supplies made to unregistered persons for each rate of tax; and

(ii) State wise inter-State supplies with invoice value upto Rs.2.5 lacs made to unregistered persons for each rate of tax;

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

For B2B supplies, all invoices need to be uploaded irrespective of whether they are intra-State or inter- State supplies. This is so because the recipient will take ITC basis such invoices.

Question & Answer

[8][Rule 59(5)

The details of outward supplies furnished using the IFF shall include the –

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

(b) DN and CN, if any, issued during the month for such invoices issued previously.

Section 37(3)

Any RP, who has furnished the details u/ss (1) for any tax period and

shall, upon discovery of any error or omission therein, rectify such error or omission in such manner as may be prescribed, and

shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period

Ex

A supplier discovers a mistake in details of the invoice furnished in GSTR-1 for the month of August, in October.

He can rectify the said mistake in the GSTR-1 for the month of October.

1^st Proviso to Section 37(3)

No rectification of error or omission in respect of details furnished u/ss (1)  for any tax period

shall be allowed after

[9][13^th Nov] following the end of the financial year to which such details pertain, or

furnishing of the relevant annual return  

whichever is earlier.

It may be noted that, the expression ‘due date’ is missing in time limits prescribed for making amendments u/s 37(3) [GSTR-1]. Therefore, such date apparently means actual date of filing and not the due date.

Ex

An entity has furnished the annual return for a FY (2017-18) on 20-08-2018.

An error is discovered in respect of a transaction pertaining to Nov-2017.

In this case, the rectification of the error pertaining to the transaction in the Nov-2017  cannot be rectified beyond 20-08-2018.

Question & Answer

[10][2^nd Proviso to Section 37(3)

No rectification of error or omission in respect of details furnished u/ss (1)  for any tax period

shall be allowed

after furnishing of the return u/s 39 for the month of Sep-2018

till the due date for furnishing the details u/ss(1) for the month of Mar-2019 or for the quarter January, 2019 to March, 2019.]

[11][Rule 59(6)

Notwithstanding anything contained in this rule, -

(a) a RP shall not be allowed to furnish GSTR-1, if he has not furnished the return in GSTR-3B [12][for the preceding month];

(b) a RP, required to furnish return for every quarter under the proviso to section 39(1) shall not be allowed to furnish GSTR-1, if he has not furnished the return in GSTR-3B for preceding tax period;

[13][(c) ***]

[14][(d) a RP, to whom an intimation has been issued u/r 88C(1) in respect of a tax period,

shall not be allowed to furnish GSTR-1 for a subsequent tax period,

unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid, as required u/sr 88C(2)]

[15][Section 37(4)

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:

Provided that the Government may by notification, subject to such conditions and restrictions as may be specified therein, allow any RPs to furnish GSTR-1, even if he has not furnished GSTR-1 for one or more previous tax periods.]

Question & Answer

A taxpayer cannot file 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

A taxpayer who has applied for cancellation of registration will be allowed to file GSTR-1 after confirming receipt of the application.

Question & Answer

Section 37(1)

Details of GSTR-1 [16][shall, subject to such conditions and restrictions, within such time and in such manner as may be prescribed, be communicated to the recipient of the said supplies]

Rule 59(3) [Upto 31.12.2020]

The details of outward supplies furnished by the supplier

shall be made available electronically to the concerned recipients

in Part A of GSTR-2A, in GSTR-4A and in GSTR-6A

after the due date of filing of GSTR-1.

Details of outward supplies shall be communicated electronically to recipient of supplies through GSTR-2A/2B as per rule 60. You may refer guide on section 38.

[17][Section 37(2)

RP who has been communicated the

details u/s 38(2) or

details pertaining to inward supplies of Input Service Distributor u/s 38(4)

shall either accept or reject the details so communicated, on or before 17^th day, but not before the 15^th day, of the month succeeding the tax period and the details furnished by him u/ss (1) shall stand amended accordingly.

Rule 59(4) [Upto 31.12.2020]

The details of inward supplies added, corrected or deleted by the recipient in his GSTR-2 u/s 38 or GSTR-4 or GSTR-6 u/s 39 shall be made available to the supplier electronically in FORM GSTR-1A through the common portal and such supplier may either accept or reject the modifications made by the recipient and FORM GSTR-1 furnished earlier by the supplier shall stand amended to the extent of modifications accepted by him.

No such option has been made applicable on GST portal.