GSTR-1 is not mandatory for all businesses, but it is mandatory for most regular registered taxpayers, including those with no transactions (NIL return). It is required for reporting outward supplies monthly or quarterly. Exemptions apply to composition dealers, Input Service Distributors (ISDs), non-resident taxpayers, and OIDAR service providers.
Every registered taxpayer under GST must file GSTR 1 except those under composition scheme, input service distributors, and non-resident taxable persons.
Every registered taxable person, other than an input service distributor/ composition taxpayer/ persons liable to deduct tax u/s 51 / persons liable to collect tax u/s 52 is required to file Form GSTR-1, the details of outward supplies of goods and/or services during a tax period, electronically on the GST Portal.
Composition Dealer: Businesses with an annual turnover of up to Rs. 1.5 Crore are exempt from GSTR 1 filing, provided they opt for the composition scheme. Online Supplier: Providers of online information, database access, or retrieval services are exempt from the obligation to file GSTR-1.
1.5 crore (as per Notification No. 71/2017 – Central Tax). Tax payers with annual aggregate turnover above Rs. 1.5 crore will however continue to file the return GSTR- 1 on a monthly basis.
Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
Form GSTR-1 is a monthly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
GSTR 1 is a return of reporting. It is filed by the taxpayers either monthly or quarterly. This return indicates your return on outward supplies, which is nothing but a sales return. GSTR 3B is the return of tax payments.
Is GST required for small business? Yes, all small businesses must register for GST under the GST Act they are a goods manufacturer with an annual turnover of over Rs. 40 Lakhs or if they are a service provider with an annual turnover of over Rs. 20 Lakhs.
Apart from the late fees, the person will not be able to claim the input tax credit. Also, it will impact not only the registered person as well as the supplier. There would be legal repercussions where your GST registration would be cancelled, and other challenges will be discussed further.
Businesses dealing in goods are exempt from GST if their annual aggregate turnover is below INR 40 lakhs. For businesses in hilly and northeastern states, this threshold is reduced to INR 20 lakhs to address regional challenges. Service providers are exempt from GST if their turnover is under INR 20 lakhs annually.
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales. You may also have to pay penalties and interest.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
Penalty on Missing the GST Due Date:
Therefore, upon non –filing of GST returns or missing out the GST due dates, the GST law prescribes a general penalty. The maximum penalty that may be imposed is Rs. 5,000.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
GST Return Fees: Rs. 1,000 to Rs. 3,000 per month. Professional Filing Services: Rs.
If you have exceeded the threshold you must register for GST. You reach the GST turnover threshold if either: your current GST turnover – your turnover for the current month and the previous 11 months – totals $75,000 or more ($150,000 or more for non-profit organisations)
GST registration is mandatory for all eCommerce Sellers Citizen can apply for New GST by Registrating online without Visiting the Govt. office.
GSTR 1 contains invoice wise details of B2B, B2C, export and deemed export supplies, along with amendments and credit or debit notes. GSTR 3B captures only summary figures of taxable value, exempt and nil rated supplies, reverse charge supplies, outward tax liability and eligible ITC.
The late fee for GSTR 1 is ₹50 per day (₹25 CGST and ₹25 SGST) for each day the return is not filed after the due date. If you miss the deadline and file GSTR 1 five days late, the late fee would be ₹250 (₹50 x 5 days).
How to Revise GSTR-1? A return once filed cannot be revised under GST. However, ay mistake made in the return can be rectified in the GSTR-1A filed for the same period (month/quarter) before filing GSTR-3B pertaining to the same period as per the 10th July 2024 CGST notification.