TMI Blog10 Key Steps that can guarantee 100% error free GSTR-1X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 Key Steps that can guarantee 100% error free GSTR-1 - By: - deepak gulati - Goods and Services Tax - GST - Dated:- 13-4-2020 - - 10 Key Steps that can guarantee 100% error free GSTR-1 It s been almost 2 years and 9 months passed since applicability of GST Regime. However, still professionals make silly mistakes while filing GSTR-1 (the preliminary return to report sales under GST Regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me). Due to such continuing mistakes in GSTR-1 , taxpayers have to suffer following consequences: - Incorrect reporting due to mistake in mentioning Place of Supply. Ineligible to claim Refund on Exports Unreconciled GSTR-1 Vs GSTR-3B Recovery Proceedings against the registered person Mismatch of sales return with e-way bills, etc. Therefore, we hereby try to compile fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing 10 key points in tabular form which can give guaranteed Error Free GSTR-1 :- Sl.No. Description of Error Committed Correct Reflection Special Instructions 1 Sales 2.5 L to URD shown under B2Cs (Only for inter-state sales) Under B2CL Column ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Any interstate sales made to URD Exceeding 2.5Lakhs will be shown here Invoice Wise data should be submitted 2 Export Sales wrongly shown as with payment instead of without payment Select under LUT / payment category This error will lead to mismatch between 3B R1. So pls check categ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory thoroughly. 3 SEZ sales reported under B2B Under Zero Rated Supplies Sales to SEZ is treated as Zero Rated Supplies under GST Regime. Hence, should be reported under correct head 4 Advance Adjustment skipped State wise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjustment of advance Advance received has to be adjusted against invoice. 5 B2CL Amendment which results in reducing total amount of Invoice below ₹ 2.5 Lakhs URD Credit Notes Sub Category B2CL No amendment in B2CL allowed if Inv Value is reduced below ₹ 2.50 Lakhs. In su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch case credit note should be issued 6 Invoice Value doesn't match with total of Taxable Value + Tax (This seems to be silly but could lead tomajor issues) Invoice Value should match This error signify the following mistake 1) Delivery / packing charges not levied to Tax 2) GST Rate mentione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in GSTR-1 is wrong 3) Cess / Additional Cess is not shown in GSTR-1 , etc. 7 Not Reporting HSN Data Mandatory for business Turnover 1.5 cr = 2 level Turnover 5 cr = 4 level HSN Codes of credit note is also required 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Unreconciled Return Data - Inter linking B2B+B2Cs+B2CL+Zero Rated +Advance- Adj of Advance- Credit Notes = HSN Summary This is the last check point which in result give satisfaction of correct GSTR-1 data based on inter-linking 9 Reduction in liabiity by Credit Notes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Not allowed after due date of Sept R-1 following the FY Sec. 34(2) of CGST Act restrict adjustment in tax liability only upto Sept GSTR-1 following the FY. This means no adjustment in tax is allowed after Sept R1 for the previous year. 10 Non-Reconciliation with GSTR-3B Monthly 3B = Monthly R1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To avoid litigation, its advisable to do proper reconciliation of particulars filed in GSTR-3B withdraft GSTR-1 .Only on matching of Return Data - Returns should be submitted. Quarterly 3B = Quarterly R1 Please follow these small steps and you will be able to file error free GSTR-1. Thanks Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gards Deepak Gulati, Deepak Arya Chartered Accountant - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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