TaxTMI 
TaxTMI 
With the introduction of GST, the tax structure has been simplified, and a unified market has been created. It has transformed the way businesses operate, particularly in terms of compliance and reporting. Since its introduction, various forms and returns have been introduced. Among these, GSTR-1 and GSTR-1A are essential, as they play a crucial role in the tax return filing process. Although GSTR-1A was suspended after GST implementation in 2017, it was reintroduced through the 53rd GST Council Meeting dated 22nd June 2024 and through CBIC Notification No. 12/2024 – Central Tax dated 10th July 2024.
To enable registered taxpayers ensure accuracy in their sales reporting and tax liabilities and to reduce discrepancies between GSTR-1 and GSTR-3B, a correction mechanism for GSTR-1, i.e., Form GSTR-1A, has been reintroduced. This article allows for exploration of how GSTR-1 provides comprehensive sales data, while GSTR-1A facilitates necessary amendments, ensuring accurate tax filings and improving transparency in the GST System. The recent reintroduction of GSTR-1A in 2024 further emphasizes its importance in reconciling discrepancies and enhancing compliance for businesses.
GSTR-1
Section 37(1) read with Rule 59 of the CGST Act, 2017 prescribes Form GSTR-1. GSTR-1 is a monthly or quarterly return that every registered person under GST must file. This return contains details of all outward supplies of goods and services made by the taxpayer. Essentially, it is a detailed record of sales transactions carried out by a business during a specific period.
The key features of GSTR-1 are as under:
- All registered taxpayers under GST, except those registered under the Composition Scheme, must fi le GSTR-1.
- Businesses with an annual turnover of up to Rs. 5 crore have the option to file GSTR-1 on a quarterly basis. Others must file it monthly.
- The due date for monthly filers is 11th of the subsequent month.
- The due date for quarterly filers is 13th of the month following the quarter.
- The details to be furnished include the invoices issued during the period, debit and credit notes issued in the period, and the details of export sales, including deemed exports, B2B (Business to Business), and B2C (Business to Consumer) sales, along with respective details.
- Any errors in previous fi lings can be corrected by making amendments in subsequent GSTR-1 filings.
Amendment in Form GSTR-1
In Sub-Rule (4) of Rule 59 of the CGST Rules, 2017, the following amendment has been made via CBIC Notification No. 12/2024 – Central Tax dated 10th July 2024, with effect from 1st day of August 2024, in Form GSTR-1 — (4) The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include the (a) invoice wise details of all – (ii) inter-State supplies with invoice value more than “Rs. 1 lakh” made to the unregistered persons; (b) consolidated details of all - (ii) State wise inter-State supplies with invoice value “Rs. 1 lakh” made to unregistered persons for each rate of tax;
The limit of Rs. 2.5 lakh has been substituted with Rs. 1 lakh in sub-clause (ii) of clause (a) of sub-rule (4) and sub-clause (ii) of clause (b) of sub-rule (4) of rule 59 of the CGST Rules, 2017. Consequently, amendments are made in Tables 5 and 7 of Form GSTR-1. A similar threshold is prescribed for Form GSTR-1A. This will increase the compliance in the case of B2C interstate supplies.
Understanding GSTR-1A
During the 53rd GST Council meeting held on 22nd June 2024, a new optional facility in Form GSTR-1A was recommended, allowing taxpayers to add or amend details filed in GSTR-1 for a tax period before filing their GSTR-3B for the same period. GSTR-1A was reintroduced as a correction mechanism for GSTR-1 in order to help registered taxpayers to ensure accuracy in their sales reporting and tax liabilities and to reduce discrepancies between GSTR-1 and GSTR-3B. With the suspension of GSTR-2 and GSTR-3 in the current GST filing system, GSTR-1A was no longer in use. The reconciliation process has since been streamlined, and the requirement for GSTR-1A was effectively removed. The GST Council has periodically made changes to the GST return filing process to make it more efficient. The removal of GSTR-1A and suspension of GSTR-2 and GSTR-3 are part of these reforms. Now, the reconciliation of outward and inward supplies is largely managed through GSTR-1 and GSTR-3B filings, along with the Input Tax Credit (ITC) reconciliation via GSTR-2A and GSTR-2B. On 18th June 2024, APIs were introduced by the GST Network, indicating a possible reintroduction of the GSTR-1A Form and its implementation soon on the GST portal. Although GSTR-1A was suspended after GST implementation in 2017, it was reintroduced through the 53rd GST Council Meeting, dated 22nd June 2024, and through Central Board of Indirect Taxes & Customs (CBIC) Notification No. 12/2024 – Central Tax dated 10th July 2024.