Difference between GSTR-1 and 3B
Difference Between GSTR 1 and 3B Explained
In this post, we will discuss the key differences between GSTR-1 and GSTR-3B, including their purposes, due dates, and the scope of each return.
Let’s check out these sections:
What is GSTR-1?
GSTR-1 is a return that every business has to file to show the sales they have made in a particular month or quarter. It gives details of all the goods and services sold, whether to other businesses (B2B) or directly to customers (B2C).
Based on the total turnover, you can file it either every month or once in three months. In this return, you need to give full details of your sales, including invoices, any debit or credit notes, and changes made to past entries if any. It only talks about outward supplies and helps keep a clear record of the income earned by your business.
What is GSTR-3B?
GSTR-3B is a monthly summary return that businesses need to file to show their total sales, purchases, and the tax they have to pay. It also includes the input tax credit they want to claim for that month. This return is simple and does not ask for detailed invoice-wise data like GSTR-1. It just gives a clear picture of how much the business has earned and how much tax is due.
Differences Between GSTR-1 and GSTR-3B
GSTR-1 and GSTR-3B are both GST returns, but they serve different purposes. GSTR-1 is all about your outward supplies (sales), and GSTR-3B is a summary of both your sales and purchases. Below are the main changes between GSTR-1 and GSTR-3B:
Purpose of Each Return
- GSTR-1: This return is for reporting your sales (outward supplies). It helps match the data with your customer’s records.
- GSTR-3B: This is a summary return where you declare your sales, purchases, and tax payable for the month.
Who Needs to File
- GSTR-1: Every GST-registered person who sells goods or services needs to file this.
- GSTR-3B: All regular taxpayers must file this monthly, even if there are no sales in that period.
Turnover-Based Filing for GSTR-1
- If your yearly turnover is more than ₹1.5 crore, you must file it every month.
- If your turnover is up to ₹1.5 crore, you can choose to file quarterly.
Turnover-Based Filing for GSTR-3B
- Normally, it’s filed monthly by all regular taxpayers.
- Small taxpayers with turnover up to ₹5 crore can opt for quarterly filing.
Due Dates
- GSTR-1:
- Monthly filers: File by the 11th of the next month.
- Quarterly filers: File by the end of the month following the quarter (30th or 31st).
- GSTR-3B:
- File by the 20th of the next month.
- If you’re a small taxpayer opting for quarterly, then follow the QRMP scheme dates.
Tax Payment
- GSTR-1: No tax payment needed here. It’s only for reporting sales.
- GSTR-3B: You need to pay the tax while filing this return. If you delay, penalties will apply.
Late Fees and Penalty
- GSTR-1: ₹200 per day (₹100 for CGST and ₹100 for SGST) if filed late.
- GSTR-3B:<
- If it’s a nil return, the penalty is ₹20 per day.
- If any transactions are reported, the penalty is ₹50 per day.
These penalties keep adding up till you file the return.
What Details Are Included
GSTR-1 includes:
- B2B and B2C invoice details
- Details of exempted goods or services
- Exports during the period
- Summary of all sales
- Receivables and repayments if any
GSTR-3B includes:
- Total turnover
- Details of exempt supplies
- Export info
- Tax calculation for CGST, SGST, and IGST
- Input Tax Credit (ITC) claimed
- Purchases under reverse charge
We’ve reached the end! If you have any questions or concerns concerning this difference between GSTR-1 and GSTR-3B, please leave them in the comments section. We’re here to help.
FAQs
Q: Is reconciliation necessary for GSTR-1 and GSTR-3B?
Ans: It’s not compulsory, but it’s very important. It helps make sure your GST returns are correct and you don’t face any issues later with compliance.
Q: What happens if I fail to file GSTR-1 or GSTR-3B on time?
Ans: If you miss the due date for filing GSTR-1 or GSTR-3B, you’ll have to pay late fees and interest. So it’s better to file on time and avoid these extra charges.
Q. What is the meaning of GSTR 3B in GST compliance?
Ans: GSTR 3B is a simple form that GST taxpayers need to file every month. In this form, you have to give details of your total sales, purchases, how much input tax credit (ITC) you are claiming, and the GST amount you need to pay for that month.
Q. When is the GSTR 3B due date each month?
Ans: GSTR 3B is usually due on the 20th of the next month. For example, the return for April should be filed by 20th May. Sometimes, the government gives extra time in special cases.
