Difference between GSTR 1 and GSTR 3B – All you need to Know 

Introduction

Every dealer who is registered with GST is required to submit monthly and quarterly GST Returns. The GST return  filings are necessary to gather data from authorized dealers and pass on the ITC. There are several types of GST return filed by taxpayer every year. But in this blog we will focus on two types of GST return that is GSTR-1 which is filed for outgoing supplies and GSTR-3B  which filed for both outgoing and incoming supplies. In this article, we will also discuss difference between GSTR-1 and GSTR-3B.

What is a GST return?

The sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax) of a company will all  be furnished in your GST return. You must pay the subsequent tax liability after filing GST returns (money that you owe to your government).

Difference between GSTR 1 and GSTR 3B

Let’s differentiate the GSTR 1 & GSTR 3B returns on the basis of various aspects.

1. Meaning of GSTR 1 & GSTR 3B

The GSTR-1 return is filed monthly or quarterly which includes the information of all the outgoing supplies, i.e., turnover. Whether it is to file monthly or quarterly is decided based on business turnover.

However, the dealer file GSTR-3B, a self-assessment return, in which they include information about their purchases and expenses for both export and import supplies. Despite the turnover, this return must be filed monthly.

2. The filing date of GSTR-1 & GSTR-3B

GSTR-1 must be filed monthly, if the company’s annual revenue exceeds Rs. 1.50 Crore, either in the previous year or in the current year. The due date to file the GSTR-1 for the present month is the 11th day of the next month. If the turnover is less than INR 1.50 crore the taxpayer has the option to file GSTR-1 on quarterly basis. In this situation, the due date to file GSTR-1 will be on the 30th or 31st of the month following the last quarter.

But the GSTR-3B is filed on a monthly basis and the filing date of GSTR-3B is specified, i.e., the 20th day of the every month, irrespective of the turnover of the company.

3. Tax payment  of GSTR-1 & GSTR- 3B

There is no amount of tax to paid when filing a GSTR-1 return.

However, the GSTR-3B is filed only after the tax liability is paid. The company has to pay a penalty if there is any delay in filing the return.

4. Penalty for delay in filing or not filing of GSTR-1 & GSTR-3B

If a company files GSTR-1 after the due date, then it has to pay the penalty of INR 200 per day (INR 100 each for SGST & CGST).

However, if a company files GSTR-3B after the due date, then the penalty of INR 20 per day in case of nil return and penalty of INR 50 per day in case any transaction details is added

5. The details to be included in GSTR-1 & GSTR-3B return

The invoice attached with the GSTR-1 return includes the details of turnover (both business-to-business and consumer-to-business),exempt supplies, export of goods and services or both during the said period of time.  An overview of the supplies made during the time period for which the return is being filed and details of account receivables and repayment.

The GSTR-3B return includes the information of turnover,  exempt supplies, export of goods or services, or even both, specifying the taxable value, CGST, SGST, and IGST for the month for which the return is being filed. The total amount of the  Input Tax Credit available during the month and details on the inward supply that are applicable to the reverse charge.

Bottom line

Every taxpayer should know the information and data to furnish in GSTR-1 and GSTR-3B return, also the filing date of each, penalties for non-filing etc. This knowledge the company can insure that there is no gap or errors which can result in a demand notice from tax authorities or other problems and prevent the inappropriate filing of returns.