As a small and medium business owner or a startup founder, filing taxes can be a tedious task. However, with the introduction of the Goods and Services Tax (GST) in India, the process has become much more streamlined. GSTR-1 is one of the most important GST returns that businesses need to file. In this article, we will discuss the advisory on sequential filing of GSTR-1 and the importance of filing it on time.
GSTR-1 is a monthly or quarterly return that businesses registered under GST need to file. It contains details of all outward supplies of goods and services made by the business during the relevant period. The details include the invoice number, date of invoice, customer's name and address, the HSN code of goods or services, and the taxable value and tax amount.
GSTR-1 needs to be filed by the 11th of the following month for monthly filers and the 13th of the following month for quarterly filers. For example, if you are a monthly filer and the relevant period is January 2022, you need to file GSTR-1 by 11th February 2022. If you are a quarterly filer, you need to file GSTR-1 by 13th February 2022.
Sequential filing means that businesses need to file GSTR-1 from the oldest period to the latest period. For example, if you have to file GSTR-1 for the period October 2021 to January 2022, you need to file it in the following sequence:
The sequential filing ensures that businesses file the returns in the correct order and avoid any mistakes or errors that may occur due to confusion.
The Central Board of Indirect Taxes and Customs (CBIC) has issued an advisory on sequential filing of GSTR-1. The advisory states that businesses need to ensure that they file GSTR-1 in the correct sequence. Any non-compliance with the sequence may result in errors or mismatches in the data filed, which may lead to further complications.
The advisory also states that businesses need to ensure that they file GSTR-1 for all periods by the due date. Any delay in filing the returns may lead to penalties and interest on the tax amount due.
Filing GSTR-1 on time is important for several reasons. Firstly, it ensures that businesses are compliant with the GST laws and regulations. Non-compliance may result in penalties and legal action.
Secondly, filing GSTR-1 on time ensures that businesses claim input tax credit (ITC) in a timely manner. ITC is a credit that businesses can claim on the tax paid on inputs used in the production of goods or services. If businesses do not file GSTR-1 on time, they may miss out on claiming ITC, which may result in increased costs.
Thirdly, filing GSTR-1 on time ensures that businesses have accurate and up-to-date records of their outward supplies. This is important for accounting and reconciliation purposes.
Filing GSTR-1 is an important task for businesses registered under GST. The advisory on sequential filing of GSTR-1 ensures that businesses file their returns in the correct sequence and avoid any errors or mismatches in the data filed. Businesses need to ensure that they file GSTR-1 for all periods by the due date to avoid penalties and interest on the tax amount due. Filing GSTR-1 on time is important for compliance, claiming ITC, and maintaining accurate records of outward supplies.
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