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GST Return Filing (GSTR-1 and GSTR-3B) – A Complete Guide
Filing Goods and Services Tax (GST) returns is a crucial compliance responsibility for every business registered under India’s GST regime. Among the various GST returns prescribed by the Government of India, GSTR-1 and GSTR-3B are the most commonly filed forms. These returns ensure the systematic reporting of outward and inward supplies, payment of taxes, and maintenance of transparency within the indirect taxation framework.
At India Company Setup, we help businesses file their GSTR-1 and GSTR-3B returns accurately and on time. Our professional GST experts are equipped to assist you at every stage—from understanding your compliance obligations to preparing, reconciling, and filing your returns.
This guide provides a comprehensive overview of GSTR-1 and GSTR-3B returns, covering their purpose, structure, eligibility, due dates, filing process, penalties, and how India Company Setup can make the process hassle-free.
What is GST Return Filing?
GST return filing is the process through which a registered taxpayer submits details of their sales, purchases, and tax liabilities to the GST authorities within stipulated timelines. It allows the government to track the flow of goods and services and monitor tax collection and input tax credit utilization across the economy.
GST returns must be filed monthly or quarterly, depending on the taxpayer’s turnover and registration status. The main types of GST returns include:
GSTR-1: Return for outward supplies of goods or services
GSTR-3B: Summary return for tax payment
GSTR-9: Annual return
GSTR-9C: Reconciliation statement
GSTR-4: Return for composition dealers
GSTR-2A: and GSTR-2B: Auto-populated purchase return for recipient reference
Among these, GSTR-1 and GSTR-3B are critical monthly/quarterly filings for all regular taxpayers.
What is GSTR-1?
GSTR-1 is a monthly or quarterly return that captures all details of outward supplies (i.e., sales of goods or services) made by a registered taxpayer. It is the foundation for generating the Input Tax Credit (ITC) for buyers as the data filed in GSTR-1 is reflected in the recipients’ GSTR-2A and GSTR-2B.
Key Highlights of GSTR-1:
Must be filed by every regular GST-registered taxpayer, even if there is no outward supply (i.e., a nil return).
Contains invoice-level details of B2B, B2C, export, and inter-state supplies.
Crucial for enabling the buyer to claim accurate ITC.
Can be filed monthly or quarterly under the QRMP (Quarterly Return Filing and Monthly Payment) scheme.
GSTR-1 Filing Frequency:
Turnover | Frequency | Due Date |
Up to ₹5 crore (opted for QRMP scheme) | Quarterly | 13th of the month following the quarter |
Above ₹5 crore or opted for monthly filing | Monthly | 11th of the following month |
GSTR-1 Structure:
The return consists of various tables capturing different kinds of outward supplies:
Table 4: B2B supplies
Table 5: B2C (Large) supplies
Table 6: Exports, SEZ supplies, and deemed exports
Table 7: Taxable supplies (B2C Small)
Table 8: Nil rated, exempt, and non-GST outward supplies
Table 9: Amendments to previous periods
Table 10-13: Credit/debit notes and HSN-wise summary
What is GSTR-3B?
GSTR-3B is a monthly self-declaration summary return that contains a summary of outward and inward supplies, tax liabilities, input tax credit claimed, and payment of GST. It is used to pay GST liability for a tax period.
Unlike GSTR-1, GSTR-3B does not contain invoice-level details. It is more of a summarized return that facilitates tax payment and compliance monitoring.
Key Features of GSTR-3B:
Summary return (not invoice-wise)
Mandatory for every regular taxpayer, including those under the QRMP scheme
Helps discharge monthly or quarterly tax liabilities
Reconciles with GSTR-1 and GSTR-2B to verify ITC
GSTR-3B Due Dates:
Type | Frequency | Due Date |
Monthly filer | Monthly | 20th of the following month |
QRMP scheme (Turnover ≤ ₹5 crore) | Quarterly | 22nd or 24th of the month following the quarter (based on the state/UT) |
GSTR-3B Format:
Table 3.1: Outward supplies and inward supplies on which tax is payable
Table 3.2: Inter-state supplies to unregistered persons, composition dealers, and UIN holders
Table 4: Eligible Input Tax Credit (ITC)
Table 5: Exempt, nil-rated, and non-GST inward supplies
Table 6: Payment of tax
Table 7: TDS/TCS credit received
GSTR-1 vs GSTR-3B – Key Differences
Feature | GSTR-1 | GSTR-3B |
Type of Return | Statement of Outward Supplies | Summary Return for Tax Payment |
Filing Basis | Invoice-level | Summary-based |
Purpose | Details of Sales | Payment of Tax Liability |
ITC Claims | Not claimed in GSTR-1 | Claimed in GSTR-3B |
Auto-population | Feeds data to GSTR-2A/2B | Matches with GSTR-2B for ITC verification |
Filing Frequency | Monthly or Quarterly | Monthly or Quarterly |
Due Dates | 11th or 13th | 20th, 22nd, or 24th |
Reconciliation Between GSTR-1, GSTR-3B, and GSTR-2B
Reconciliation Between GSTR-1, GSTR-3B, and GSTR-2B
Reconciliation is a vital part of GST compliance. Discrepancies between GSTR-1 and GSTR-3B, or between GSTR-3B and GSTR-2B, can result in the denial of input tax credit, notices from the GST Department, and penalties.
Common Reconciliation Issues:
Differences in sales figures
Incorrect reporting of credit/debit notes
Mismatch in tax amounts paid vs declared
Discrepancy in ITC claimed and reflected in GSTR-2B
Best Practices for Reconciliation:
Regularly compare GSTR-1 and GSTR-3B
Match GSTR-3B ITC with GSTR-2B auto-populated data
Rectify errors through amendments in subsequent returns
Maintain proper documentation and audit trails
How to File GSTR-1 and GSTR-3B – Step-by-Step Process
Filing GSTR-1:
Log in to the GST portal (www.gst.gov.in)
Navigate to ‘Returns Dashboard’ and select the appropriate financial year and month.
Click on ‘Prepare Online’ under GSTR-1.
Enter invoice details under each relevant table.
Use Excel or JSON utilities if required.
Save and validate data.
Preview the return and submit.
File using DSC/EVC (Electronic Verification Code).
Filing GSTR-3B:
Log in to the GST portal.
Choose the ‘Returns Dashboard’ and open the GSTR-3B form.
Fill in all summary details for outward supplies, inward supplies, and ITC.
Compute the tax payable.
Pay taxes through the cash/credit ledger.
Submit and file the return using DSC/EVC.
Penalty for Late Filing of GSTR-1 and GSTR-3B
Failing to file GSTR-1 or GSTR-3B on time can attract heavy penalties:
GSTR-1 Late Fee:
₹50 per day (₹25 CGST + ₹25 SGST)
Nil return: ₹20 per day (₹10 CGST + ₹10 SGST)
Maximum: ₹10,000 per return (₹5,000 CGST + ₹5,000 SGST)
GSTR-3B Late Fee:
₹50 per day (₹25 CGST + ₹25 SGST)
Nil return: ₹20 per day
Interest @ 18% per annum on outstanding tax liability
Who is Required to File GSTR-1 and GSTR-3B?
All regular GST-registered businesses are required to file GSTR-1 and GSTR-3B unless they fall into the following categories:
1. Composition dealers (file CMP-08 and GSTR-4 instead)
2. Non-resident taxable persons (file GSTR-5)
3. Input Service Distributors (file GSTR-6)
4. E-commerce operators liable for TCS (file GSTR-8)
Why Choose India Company Setup for GST Return Filing?
Navigating GST compliance can be complex and time-consuming. At India Company Setup, we simplify the process for you.
Our Services Include:
1. Timely preparation and filing of GSTR-1 and GSTR-3B
2. Reconciliation with GSTR-2A and 2B
3. Input tax credit review and optimization
4. Auto-reminders and alerts to avoid late fees
5. Expert advice on GST queries
6. End-to-end compliance monitoring
Benefits of Partnering with Us:
1. Save time and reduce errors
2. Ensure 100% compliance and avoid penalties
3. Seamless documentation and record maintenance
4. Expert team with real-time updates on GST laws
Documents Required for Filing GSTR-1 and GSTR-3B
To ensure accurate return filing, the following documents are required:
1. GSTIN and login credentials
2. Sales invoices
3. Purchase invoices (for ITC claims)
4. Debit/credit notes
5. GSTR-2B download (for ITC matching)
6. Previous GSTR-3B filings (for reconciliation)
7. Bank statement (to verify tax payments)
8. E-way bills (if applicable)
Common Mistakes to Avoid
1. Incorrect reporting of invoice details
2. Delayed filing causing penalties
3. Mismatch between books and returns
4. Claiming ineligible ITC
5. Not reconciling with GSTR-2B
6. Filing nil return when taxable transactions exist
Final Thoughts
Filing GSTR-1 and GSTR-3B on time is not just a compliance formality—it is essential for sustaining smooth operations, maintaining vendor relationships, and ensuring financial transparency. Errors or delays in filing can cause disruption in the ITC chain and trigger GST notices.
India Company Setup is your trusted partner in managing GST compliance seamlessly. Our experienced team ensures that your filings are timely, accurate, and aligned with the latest regulations. Get in touch today to simplify your GST return filing process and stay 100% compliant with Indian tax laws.
What We Offer
At India Company Setup, we deliver a complete suite of business services to help you start, grow, and manage your company with ease. From registration to regulatory compliance, our expert support ensures your business stays legally sound and financially organized.
Daily & Monthly Bookkeeping
- Record all financial transactions.
- Maintain audit-ready books in sync with GST and Income Tax laws
- Stay prepared for MCA and statutory filings
Financial Reporting
- Preparation of Profit & Loss Statements and Balance Sheets
- Generate detailed balance sheets.
- Deliver cash flow statements.
Reconciliation Services
- Bank and credit card reconciliations.
- Ensure accuracy of all financial data.
- Maintain accuracy for timely Income Tax and MCA submissions
Secure Digital Bookkeeping
- Utilize encrypted software for data security.
- Anytime, anywhere access to your business data
- Aligned with India's data protection and compliance standards
Benefits of Our Bookkeeping Services
1. Accurate Financial Records
Our expert bookkeeping ensures every transaction is correctly recorded, reducing compliance errors and giving you a clear picture of your company’s financial health — crucial for GST, Income Tax, and MCA filings.
2. Time-Saving
Focus on growing your business while we manage your books. By outsourcing to us, you eliminate the burden of paperwork, reconciliations, and regulatory upkeep — saving you both time and effort.
3. Better Cash Flow Management
We help you monitor income and expenses in real time, so you maintain a healthy cash position, make informed decisions, and avoid last-minute cash crunches or missed tax deadlines.
GSTR-1 is a monthly or quarterly return that captures details of all outward supplies (sales).
GSTR-3B is a summary return of outward and inward supplies, used to declare tax liability and pay taxes.
All regular GST-registered businesses (excluding composition scheme dealers, Input Service Distributors, and a few exceptions) are required to file both GSTR-1 and GSTR-3B monthly or quarterly depending on their turnover.
GSTR-1:
11th of the next month (monthly)
13th of the next month after quarter-end (quarterly under QRMP scheme)
GSTR-3B:
20th of the next month (monthly)
22nd or 24th of the next month after quarter-end (based on the state for QRMP)
Late filing leads to:
Late fees of ₹50/day (₹20/day if no tax is payable)
Interest at 18% per annum on the tax payable
Blocking of e-way bill generation
Ineligibility to claim Input Tax Credit (ITC)
GSTR-1 cannot be revised, but errors can be rectified in future returns.
GSTR-3B also cannot be revised. Corrections or omissions must be adjusted in the return of a subsequent month.
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