1. Decoding GSTR 1
and GSTR 3B
CA Jugal Narendra Gala

2. 2
Credits and Acknowledgments
Harish Kumar R
Thirumal V

3. Legends used in the Presentation
3
EOU Export Oriented Units
FY Financial Year
GST Goods and Services Tax
GTA Goods Transport Agency
HSN Harmonized System Nomenclature
ITC Input Tax Credit
RCM Reverse Charge Mechanism
SEZ Special Economic Zone
UIN Unique Identification Number

4. Presentation Schema
4
Introduction GSTR 1 Contents of GSTR 1 GSTR 3B
Contents of GSTR
3B
Comparison of
GSTR 1 and GSTR 3B
Statistics

5. Introduction
5
Goods and Services Tax (GST) is a consumption-based tax on goods and services
GST is a major source of revenue for government
Typically, businesses have to file two returns viz. GSTR 1 and GSTR 3B
GSTR 1 requires reporting of details of all outward supplies of goods and services made
GSTR 3B requires furnishing summarised details of all outward supplies made, Input Tax Credit (ITC) claimed, etc.

6. GSTR 1
6
It contains details of all outward supplies
GSTR-1 is a monthly or quarterly return that should be filed by every registered
dealer irrespective of whether there are any transactions during the month or not
Periodicity of Returns
Registered persons with aggregate turnover up to ₹ 1.5 Crores in preceding last year –
Quarterly Return
Registered persons with aggregate turnover exceeding ₹ 1.5 Crores in preceding last
year – Monthly Return
is based on turnover

7. Due Date and Late Fees
7
Late fees
*Arises when there were no invoices issued during a month
Rs.50 per day and Rs.20 per day in case of Nil return*
However, as per Notification No. 04/2020, dt 10-01-2020, the late fee
payable until January 17, 2020 has been waived (till November 2019
returns to be filed)
Due Date
In case of monthly return, GSTR 1 shall be furnished electronically on or before 11th day of the succeeding month
In case of quarterly return, it shall be furnished electronically on or before last day of the month following quarter

8. Procedure for filing GSTR 1
8
Log on to GST portal @ www.gst.gov.in

9. Contd.
9
Navigate through ‘Return Dashboard’ and select the appropriate FY
and return filing period and select GSTR 1

10. Contents of GSTR 1
10
Basic Details

11. Taxable Outward Supplies made to Registered Persons
11
Taxable outward supplies made to registered persons (including Unique Identification Number (UIN) holders*)
Under the table all B2B supplies should be mentioned
4A
Invoice wise details of all supplies made other than those under reverse charge and supplies made
through e-commerce operator** should be mentioned
All outward supplies on which reverse charge is applicable is shown here4B
4C Supplies made through e-commerce operator which attract TCS has to be reported here
**every person who, directly or indirectly, owns, operates or manages an electronic platform which is
engaged in facilitating the supply of any goods and/or services
* Unique Identification Number
(UIN), is a special class of GST
registration for foreign
diplomatic missions and
embassies which are not liable
to taxes in the Indian territory

12. Taxable outward inter-State supplies to un-registered
persons
12
Details Taxable outward inter-State supplies to un-registered persons – if the invoice value is more than Rs 2.5 lakh
Invoice wise details of all supplies made to unregistered dealers is to be mentioned here
This will include sales to unregistered dealer5A
5B The details of B2C supplies made online through e-commerce operator

13. Zero-rated supplies and deemed exports
13
Zero-rated supplies and deemed exports
-All type of zero-rated supplies, exports, deemed exports (supply to SEZ, EOUs) has to
be mentioned under this head
-A registered dealer has to give details of invoice, bill of export or shipping bill
-Where the goods are manufactured in India, and the goods supplied do not leave India, and payment for such
supplies is received either in Indian rupees or in convertible foreign exchange
-Such supplies are considered by deemed exports when the same is notified by the Government
Deemed Exports

14. Rate wise summary of all sales to Unregistered Dealers
14
Rate wise summary of all sales made during the
month to unregistered dealers
All intra-state sales including sales made through e-commerce operator have to be mentioned here7A
7B
B2C interstate supply along with place of supply i.e. name of state where invoice value is up to Rs 2.5 lakhs
should be specified here

15. Nil-rated, Exempt and Non-GST Outward Supplies
15
Nil-rated, exempt and non-GST outward supplies
-All the other supplies whether nil rated, exempt or non-GST which has not been reported under any of
the previous table needs to be reported under this table
-This need to be further bifurcated into Inter-State, Intra-State to registered and unregistered persons

16. Amendments to GSTR 1
16
Amendments to taxable outward supply details furnished in returns for earlier tax periods
Any correction in GSTR 1 can be amended while filing in subsequent month
However, certain details cannot be
amended which includes
Customer GSTIN
In case of Exports, Shipping Bill date or bill of Export
Date and type of export
In case of credit or debit notes receiver/ customer
GSTIN, place of supply

17. Contd.
17
Amendments to taxable outward supplies to unregistered persons furnished on returns for
earlier tax periods

18. Consolidated Statement
18
Consolidated Statement of Advances Received or adjusted in the current tax period,
amendments from earlier tax periods
-Mention all advances received during the earlier period corresponding to invoices raised
during the current period.
-Specify all advances received in the month for which invoice was not raised

19. Harmonized System Nomenclature (HSN) Summary
19
HSN Summary
Every registered dealer to provide HSN wise summary of goods sold during the tax period
HSN codes are used to classify the goods for taxation purpose

20. Documents Issued
20
Documents issued during the tax period
Details of all invoices issues in a tax period, any kind of revised
invoice, debit notes, credit notes, etc.

21. GSTR 3B
21
The GSTR-3B is a consolidated summary return of inward supplies liable to reverse charge and
outward supplies, input tax credit claimed, tax liability ascertained and taxes paid
GSTR 3B is a self-declaration return which is to be filed every month
The taxpayer is not required to provide invoice level information in this form
GSTR 3B once filed cannot be revised subsequently after payment of tax

22. Return Filing
22
Filing of Returns within stipulated dates is fundamental for a taxpayer to
avoid payment of any interest and penalty.
GSTR 3B has to be filed by every business on or before 20th day of the
succeeding month
Interest and Late Fee
Failure to file GSTR-3B within the due date or failure to pay the output
tax liability in full would attract late fees and interest respectively
Applicable Interest and Late fee are as follows:
Particulars Description
Interest 18% p.a as interest (month or part of a month)
Penalty Rs.50 per day and Rs.20 per day in case of Nil return*
*Arises when there were no invoices issued during a month

23. Contents of GSTR 3B
23
Tax on outward and reverse charge inward supplies
Eligible ITC
Interest and Late Filing Fees
Payment of Tax

24. Procedure for filing GSTR 3B
24
Log on to GST portal @ www.gst.gov.in

25. Contd.
25
Navigate through ‘Return Dashboard’ and select the appropriate FY
and return filing period and select ‘Prepare Online’ of GSTR 3B

26. Contents of GSTR 3B
26
Basic
Details

27. Tax on Outward and Reverse charge Inward Supplies
27
Tax on Outward and Reverse charge inward supplies
The liability to pay tax is on the recipient of supply of goods or services instead of supplier of such goods or
services in respect of notified categories of supply and specified categories of goods or services or both by an
unregistered supplier to specified class of registered persons
Reverse Charge Mechanism (RCM)

28. Contd.
28
Outward
taxable
supplies
(zero-rated
Inward supplies
(liable to reverse
charge)
Non-GST
outward
supplies
Only those supplies
on which the GST
rate is zero. Zero-
rated supplies are
exports or supplies
made to SEZ
Supplies which are
liable to reverse
charge are reported
here
Any supplies
made which are
outside the
purview of the
GST
Outward taxable
supplies (other than
zero rated, nil-rated
and exempted)
Doesn’t include supplies
which are zero-rated, or
have a nil rate of tax or are
exempt from GST. Includes
only on which GST has been
charged

29. Contd.
29
Goods or services notified under RCM
Supplies of goods taxable under RCM includes
Supply of silk yarn
Supply of old and
used goods
Supply of waste
and scrap
Cashew Nuts (not
shelled/ peeled)
Supply of Raw
cotton
Supplies of services taxable under RCM includes
Supply of services by a Goods Transport Agency (GTA) in respect of transportation of goods by road to any person
registered under the GST Act, any body corporate, any partnership firm
Services supplied by an individual advocate by way of legal advices, directly or indirectly
Services supplied by an insurance agent
Services supplied by a director of a company/ body corporate to the said company/ body corporate
Any person who provides service in relation to transport of goods by road and issues consignment note
GTA

30. Details of inter-state supplies to certain persons
30
Details of inter-state supplies made to unregistered persons, composition taxable
persons, and UIN holders.
Under this table, Outward taxable supplies (other than zero rated, nil rated,
exempted) which are in the nature of inter-state supply which are made to
Unregistered persons
Composition dealers
Those who hold a UIN

31. Eligible ITC
31
Eligible ITC
ITC is the tax that a business pays on a purchase and that it can use to reduce its tax liability when it makes a sale

32. Eligible ITC – Contd.
32
ITC Available (whether in full or part)
ITC Reversed
Under this part the details of
-Import of Goods
-Import of Services
-Inward supplies liable to reverse charge
-Inward supplies to from Input Service Distributor
-All other ITC
Whichever applicable are required to be furnished
-Goods and services, where they have been used partly for business and partly for other purposes, to
the extent not used for business
-Input credit related to capital goods used for business and other purposes, for taxable, exempt, nil-
rated supplies must also be reversed to the extent not used for business
32

33. 33
Net ITC Available
Ineligible ITC
It is automatically calculated by the GST portal based on the input
provided in ITC Available and ITC Reversed. Net ITC available is arrived
by reducing the ITC Reversed from ITC available
Certain transactions on which GST are ineligible for ITC. It includes
-If motor vehicles and other conveyances used apart from when they are used for transporting
goods, transporting the passengers
-The goods or services or both purchased in categories of food and beverages, beauty
treatment, cosmetic and plastic surgery, health services, outdoor catering - except when
where an inward supply of goods or services or both of a particular category is used by a
registered person for making an outward taxable supply of the same
33
The next and final step would be payment of tax
Eligible ITC – Contd.

34. Comparison of GSTR 1 and GSTR 3B
34
which could, in turn, lead to a demand notice from the tax authorities or unwanted
issues that may arise and hinder the accurate filing of the annual returns
in order to ensure that there are no variations or gaps,
to be undertaken by every taxpayer
Comparing GSTR-3B with GSTR-1 is a much-needed process
- At the time of filing an Annual return in Form GSTR – 9, a reconciliation of outward supplies should be made
- The details disclosed in GSTR-1 and GSTR-3B should match, across all months

35. GSTR 1 Statistics
35
30.00%
35.00%
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
70.00%
75.00%
80.00%
0
2000000
4000000
6000000
8000000
10000000
12000000
No. of Tax Payers eligible to File No. Tax Payers filed by Due Date
No. of Tax Payers filed after due date Filing Percentage as on 31st Dec 2019
November 2019
No. of Tax Payers
eligible to File
No. Tax Payers filed by
Due Date
No. of Tax Payers filed
after due date
Filing Percentage as on
31st Dec 2019
45,70,216 12,59,365 12,16,441 54.17%

36. GSTR 3B Statistics
36
50.00%
55.00%
60.00%
65.00%
70.00%
75.00%
80.00%
85.00%
90.00%
95.00%
100.00%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
April 2019 May 2019 June 2019 July 2019 August
2019
September
2019
October
2019
November
2019
No. of Tax Payers eligible to File No. Tax Payers filed by Due Date
No. of Tax Payers filed after due date Filing Percentage as on 31st Dec 2019
November 2019
No. of Tax Payers eligible to
File
No. Tax Payers filed by
Due Date
No. of Tax Payers filed
after due date
Filing Percentage as
on 31st Dec 2019
1,04,91,309 71,00,761 10,13,684 77.34%

37. 37
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