GSTR-1 v/s GSTR-3B

GSTR-1 is a return statement to be filed by a registered dealer on a monthly/quarterly basis which reflects invoice wise details of the outward supplies made by him during a month or a quarter along with the tax liability.
  • Details to be shown in GSTR-1:
  • GSTIN and Aggregate Annual Turnover of preceding year
  • Invoice wise details of Taxable outward supplies made to registered businesses(B2B)
  • Details of taxable supplies made to unregistered persons and end consumers
  • Details of Nil-rated/Exempted/Non-GST supplies and deemed exports
  • HSN wise summary of outward supplies made
  • Credit Notes and Debit Notes
  • No payment of taxes is required on filing GSTR-1
  • Due date of filing GSTR-1:
  • GSTR-1 return filing frequency Due date
    Monthly GSTR-1 11th of Subsequent month
    Quarterly GSTR-1 Last of the date of the month following the end of the quarter
    GSTR-3B is a summarised self-declaration return to be filed on a monthly basis by the taxpayer which discloses the details of consolidated outward supplies (including nil rated/ exempted/zero rated supplies) made to registered persons/unregistered persons/composition dealers/UIN Holders in a month along with the tax liability, inward supplies liable to reverse charge, ITC and tax paid.

    Payment of taxes is a pre-requisite for filing GSTR-3.

    Due date of filing GSTR-3B:
    Annual Turnover in Previous Year GSTR-1 return filing frequency Due date
    Exceeding 5 crores Monthly GSTR-3B 20th of Subsequent month
    Not exceeding 5 crores Quarterly GSTR-1 22nd/24th of the month following the end of the quarter
Why is it important to match GSTR-1 and GSTR-3B
  • Reconciliation of GSTR-1 and GSTR-3B is an important and a much-needed step to be undertaken by the taxpayers as there might be discrepancies in returns filed or any mismatches which could lead to getting notices from the department and levy of interest.
  • Both GSTR-1 and GSTR-3B are filed by the same person. Different information cannot be accepted and demand will definitely be raised. So, in case there’s an unaddressed discrepancy, the tax payer cannot skip the demand raised by saying the vendor might have missed an invoice as in case of reconciling GSTR-2A.
  • Reconciliation will ensure that no invoices have been skipped or recorded twice and hence correct tax liability can be calculated.
  • On the basis of GSTR-1, the recipients will claim input tax credit. Hence, accurate reconciled information ensures there are no disputes with the recipients when they file their respective returns.
  • It helps in staying GST compliant
  • The return filing process is an integrated process and all returns are inter-linked. Mistakes or errors can be identified by this reconciliation will ensure that annual return filing process will be seamless.
Reasons for mismatch
  • Correct information filed while declaring invoice wise details in GSTR-1 but wrong entries while declaring them as per the tables (e.g.: reported a B2B Sale as Sale to an Unregistered party) in GSTR-3B.
  • Invoices omitted to be recorded in GSTR-1 but summary data was correctly filed under GSTR-3B.
  • Supply details recorded correctly but the tax was paid or recorded under a wrong head.
Amendments to be made after Reconciliation
  • GST returns are filed monthly or quarterly basis. Finally, after the financial year gets over, annual returns must be filed before the 31st December of subsequent FY. This would need consolidation of the data reported over the FY. In order to ensure the correctness of the declaration made and to avoid duplications, taxpayer must reconcile the data, then consolidate the values and make the declaration
  • Payment of short paid taxes along with interest. It is, therefore, important to do reconciliation on a regular basis, so as to avoid interest charges.
CountMagic: A powerful reconciliation tool
  • CountMagic offers the following features that help in reconciliation:
  • CountMagic needs just the import of the sales data once and it will provide automated GST Returns which means 100% accurate data matching with the books.
  • It gives graphical representation of sales, purchase and GST reports to see data at a glance and to easily identify errors.
  • It saves time and quick fuel the return filing process.
  • You can access the GST Reports on monthly/quarterly basis that makes the data collection and visualisation easier.