Comparison between GSTR-1 and GSTR-3B

Every dealer registered under GST has to file monthly and quarterly GST Returns. These returns are required to collect information from registered dealers and pass on the Input Tax Credit.  In this article, we shall be discussing the comparison between GSTR-1 and GSTR-3B returns in detail.

What is GSTR-1 and GSTR-3B?

GSTR-1 is a monthly or quarterly return which states the details of all outward supplies i.e. turnover. The turnover of the Business is considered to determine whether the return should be filed monthly or quarterly.

GSTR-3B is a self-assessment return filed by the dealer stating the details for Outward Supplies and Inward Supplies i.e. Purchases and Expenses. This return is required to be filed on a monthly basis irrespective of the turnover.

When to file GSTR-1 and GSTR-3B?

If the turnover of the business exceeds Rs.1.50 Crore during the previous year or during the current year, GSTR-1 has to be filed on a monthly basis. The due date for filing GSTR-1 for a particular month is 11^th of the succeeding month. In case the turnover is less than Rs.1.50 crore, the taxpayer has an option to file GSTR-1 on a quarterly basis. In this case, the due date shall be 30th or 31st of the month succeeding the last month of the quarter. For instance: GSTR-1 for the quarter April-June should be filed by 31st of July.

GSTR-3B as discussed above has to be filed on a monthly basis irrespective of the turnover. The due date for filing GSTR-3B is 20^th of the succeeding month.

What details to show in GSTR-1 and GSTR-3B?

GSTR-1

1. Invoice wise details of Turnover (both B2B and B2C) during the said period of return including Exempt Supplies, Export of goods and services or both.
2. HSN Summary of the supplies made during the period for which return is being filed. (Registered Dealers having a turnover of less than Rs.1.50 crore are given exemptions from providing these details)
3. Credit Note and Debit Note Details

GSTR-3B

1. Details of Turnover including Exempt Supplies, Export of Goods or Services or both stating the Taxable Value, CGST, SGST and IGST for the month for which return is being filed.
2. Amount of Input Tax Credit available during the month.
3. Information about the inward supplies on which reverse charge is applicable.

Payment of Taxes

GSTR-1: While filing GSTR-1 no amount of tax has to be paid.

GSTR-3B: The return GSTR-3B can be filed only after paying the Tax Liability (CGST, SGST and IGST). Also, payment of late fees, if any, is mandatory before filing the return.

Consequences of Missing the Due Date

GSTR-1:  If GSTR-1 is filed after the Due Date then a late fee of Rs. 50 per day is levied till the date the return is filed. In case of Nil return the late fees leviable comes to Rs.20 per day (Rs.10 CGST Fees+Rs.10 SGST Fees).

*As of now, GSTR-1 can be filed after the due date without payment of late fees, however, it will be at the discretion of the GST Officer whether to charge for late filing at a later stage.

GSTR-3B: If GSTR-3B is filed after the Due Date then late fees of Rs. 50 per day is levied till the date the return is filed. In case of Nil return the late fees leviable comes to Rs.20 per day of delay (Rs.10 CGST Fees+Rs.10 SGST Fees). Maximum amount of penalty will be Rs.10,000(Rs.5000 CGST + Rs.5000 SGST) for every return.

Amendment in GST Return

In the case of Under Reporting or Over Reporting of GST Liability or Input Tax Credit, the need for amendment in return arises.

Case:1 Liability is under-reported

In GSTR-1: The Additional Liability should be added in the GSTR-1 of the subsequent month.

In GSTR-3B: Show the Additional Liability in the GSTR-3B of the subsequent month and pay tax along with interest

Case:2 Liability is over-reported

In GSTR-1: Such liability shall be amended through the amendment under Table 9 of GSTR-1.

In GSTR-3B: Reduce the Additional Tax Liability in the GSTR-3B of the subsequent month and claim refund or offset against the future tax liability.

Case:3 Input Tax Credit is Underreported or Over reported in GSTR-3B

Underreported:  The un-availed ITC can be claimed in the subsequent month return.

Over reported: The excess credit claimed can be reversed in the subsequent month Return by paying Interest or can be paid in cash along with interest.