10 Key Steps that can guarantee 100% error free GSTR-1

[deepak gulati]

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: -

1. Incorrect reporting due to mistake in mentioning Place of Supply.
2. Ineligible to claim Refund on Exports
3. Unreconciled GSTR-1 Vs GSTR-3B
4. Recovery Proceedings against the registered person
5. 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 (Only for inter-state sales)	Under B2CL Column	Any interstate sales made to URD Exceeding 2.5Lakhs will be shown here Invoice Wise data should be submitted
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 (This seems to be silly but could lead tomajor issues)	Invoice Value should match	This error signify the following mistake 1) Delivery / packing charges not levied to Tax 2) GST Rate mentioned in GSTR-1 is wrong 3) Cess / Additional Cess is not shown in GSTR-1, etc.
7	Not Reporting HSN Data	Mandatory for business Turnover > 1.5 cr = 2 level Turnover > 5 cr = 4 level	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