GSTR-1 & 3B, reconciled monthly

Category: GST Services. From ₹2,500/mo. Typical timeline: Monthly.

Overview

GST return filing is the recurring monthly or quarterly process of reporting outward supplies, inward supplies and tax liability to the GST department through forms like GSTR-1 and GSTR-3B. Timely, reconciled filing keeps input tax credit flowing correctly, avoids interest and late fees, and is essential for maintaining an active GST registration.

Who needs it

• All regular GST-registered businesses needing monthly/quarterly compliance
• E-commerce sellers and service exporters with recurring GST reporting obligations
• Businesses on the QRMP scheme needing monthly tax payment with quarterly return filing
• Companies needing accurate GSTR-2B reconciliation to maximise input tax credit claims

Eligibility

• Every GST-registered regular taxpayer must file GSTR-1 and GSTR-3B
• Composition scheme taxpayers file CMP-08 quarterly and GSTR-4 annually instead
• Businesses with turnover up to ₹5 crore can opt for the QRMP (Quarterly Return, Monthly Payment) scheme
• Nil return filing is mandatory even if there is no business activity in a period

Documents required

• Sales and purchase invoices for the period
• GSTR-2B/2A reconciliation data
• E-way bill details for applicable consignments
• Bank statement for cross-verification of turnover
• Details of any credit/debit notes issued

Process

1. Data collection — Compile sales, purchase and expense invoices for the filing period.
2. Reconciliation — Match purchase invoices against GSTR-2B to determine eligible input tax credit.
3. GSTR-1 filing — Report outward supply details, typically by the 11th of the following month (monthly filers).
4. GSTR-3B filing and payment — File the summary return and pay net tax liability, typically by the 20th of the following month.

Government fees

• GSTR-1/GSTR-3B filing: Nil — no government fee for filing on the GST portal
• Late fee (if delayed): ₹50 per day (₹20 per day for nil returns), subject to caps

Professional fee

Kanoons charges from ₹1,500 per month for GSTR-1 and GSTR-3B preparation, reconciliation and filing, depending on invoice volume.

Timeline

This is a recurring monthly (or quarterly under QRMP) filing cycle, with GSTR-1 due around the 11th and GSTR-3B around the 20th of the following month.

Deliverables

• Filed GSTR-1 and GSTR-3B acknowledgments
• Monthly input tax credit reconciliation statement
• Tax liability and payment summary
• Late fee/interest exposure report, if any

Frequently asked questions

What is the QRMP scheme?

It allows taxpayers with turnover up to ₹5 crore to file GSTR-1 and GSTR-3B quarterly while paying tax monthly through a simplified challan.

What happens if GSTR-3B is not filed for two consecutive periods?

The GST registration can be suspended or cancelled by the department, and e-way bill generation gets blocked.

Can input tax credit be claimed if the supplier has not filed their return?

No, ITC is available only to the extent it is reflected in GSTR-2B, which depends on the supplier having filed their GSTR-1.

Common mistakes

• Claiming input tax credit without reconciling against GSTR-2B
• Missing the GSTR-1 and GSTR-3B due dates, attracting interest and late fees
• Not reversing ineligible ITC under Rule 42/43 where applicable
• Reporting incorrect HSN/SAC summary details, leading to notices

Penalties for non-compliance

• Late filing attracts late fee of ₹50 per day (₹20 per day for nil returns) subject to a maximum cap per return
• Interest at 18% per annum applies on delayed tax payment from the original due date
• Continuous non-filing for two or more tax periods can lead to GSTIN suspension or cancellation

Legal references

• Central Goods and Services Tax Act, 2017, Sections 37-39 — return filing framework
• CGST Rules, 2017, Rule 59-61 — manner of furnishing returns
• Notification on QRMP Scheme — quarterly filing option for eligible taxpayers