TaxTMI 
TaxTMI 
TaxTMI 
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 Regime). 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 following 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 | Under B2CL Column |
|
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 category 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 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 such case credit note should be issued |
6 | Invoice Value doesn't match with total of Taxable Value + Tax | Invoice Value should match | This error signify the following mistake |
7 | Not Reporting HSN Data | Mandatory for business | HSN Codes of credit note is also required |
8 | 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 | 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 | 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 & Regards
Deepak Gulati, Deepak Arya
Chartered Accountant