GSTR-1 — Outward Supplies Return

Learning Objectives

• Understand what GSTR-1 reports and why it matters for your buyers
• Identify the different tables in GSTR-1 (B2B, B2C large, B2C small, CDN, HSN)
• Know the filing deadline and penalty for late filing
• Complete a GSTR-1 for Sunrise Retail April 2025 with real data
• Understand how to file via GST portal and via Tally direct upload

What Is GSTR-1?

GSTR-1 is the monthly (or quarterly) return of all outward supplies — every sale invoice, credit note, debit note, and advance receipt that your business issued in a period.

GSTR-1 is purely a reporting return. It does not involve any payment of tax. Tax is paid through GSTR-3B.

Why GSTR-1 Matters

When you file GSTR-1, your invoices appear in your buyer's GSTR-2B (auto-populated ITC statement). If you don't file, your buyer cannot see the invoice in GSTR-2B and may face difficulties claiming ITC.

This creates a commercial pressure: buyers chase their suppliers to file GSTR-1 on time.

Who Files GSTR-1 and When?

Sunrise Retail — turnover ~₹1.2 Crore → eligible for QRMP (quarterly filing). However, for learning purposes, we'll file April 2025 as if monthly.

Penalty for late filing:

• ₹50 per day (₹25 CGST + ₹25 SGST) — subject to a maximum of ₹10,000
• For nil returns: ₹20 per day (₹10 CGST + ₹10 SGST) — maximum ₹500

Tables Inside GSTR-1

Sunrise Retail — GSTR-1 for April 2025

💼 Sunrise Retail Pvt Ltd | GSTIN: 36AACCS1234A1ZP | Tax Period: April 2025

All four sales transactions feed into GSTR-1. Let us populate each table:

Table 4 — B2B Invoices (Supplies to Registered Buyers)

Both Digital Hub (registered, 36AAADH4321E1ZQ) and CloudStore (registered, 29AAACL2345G1ZS) are registered dealers → their invoices go in Table 4.

Column notes:

• "Place of Supply" = destination state — for goods, it is where goods are delivered
• "Reverse Charge" = N for normal supplies; Y only for notified RCM supplies
• CGST and SGST appear only for intrastate; IGST appears only for interstate

Table 5 — B2C Large (Interstate, Unregistered, >₹2.5 Lakh)

Sunrise Retail has no B2C (unregistered) sales in April 2025. All April sales are to registered businesses. Table 5: Nil.

Table 7 — B2C Small (All Other Unregistered)

No retail walk-in sales in April. Table 7: Nil.

Table 11 — Credit/Debit Notes (Registered Buyers)

The April 24 return from Digital Hub (registered dealer) generates a Credit Note that goes in Table 11.

The purchase return (Sunrise Retail returning phones to TechWorld) does not appear in Sunrise Retail's GSTR-1. That return results in TechWorld issuing a Credit Note to Sunrise Retail, which TechWorld reports in their GSTR-1.

Table 14/15 — HSN Summary of Outward Supplies

HSN summary consolidates all outward goods by HSN code.

Calculation: 30 phones to Digital Hub ₹4,80,000 − return ₹32,000 = ₹4,48,000 + 20 phones to CloudStore ₹3,30,000 = ₹7,78,000 taxable. Net CGST = ₹40,320, Net SGST = ₹40,320, IGST = ₹59,400.

Note: HSN summary is mandatory for all taxpayers with turnover >₹5 Crore. For others (like Sunrise Retail), optional but good practice.

Step-by-Step GSTR-1 Filing on GST Portal

[GST portal: www.gst.gov.in → Login → Returns → Returns Dashboard]

Step 1 — Select Return Period

Financial Year: 2025-26
Tax Period: April 2025
Prepare Online: Click

[Dashboard showing GSTR-1 tile with status "Not Filed"]

Step 2 — Table 4 (B2B Invoices)

Click: 4A, 4B, 4C, 6B, 6C — B2B Invoices
→ Add Invoice
GSTIN: 36AAADH4321E1ZQ
Invoice No: SR-2025-0042
Invoice Date: 10/04/2025
Invoice Value: 5,66,400
Place of Supply: 36 — Telangana
Taxable Value: 4,80,000
Tax Rate: 18%
→ Tally (auto-splits CGST/SGST)
→ Save
Repeat for CloudStore invoice (IGST)

Step 3 — Table 11 (Credit/Debit Notes)

Click: 9C — Credit/Debit Notes (Registered)
→ Add Note
Note Type: Credit
GSTIN: 36AAADH4321E1ZQ
Note No: CN-2025-0005
Note Date: 24/04/2025
Original Invoice: SR-2025-0042
Taxable Value: 32,000
Tax Rate: 18%
→ Save

Step 4 — HSN Summary (Optional for Sunrise Retail)

Click: 12 — HSN Summary
HSN: 8517
Description: Smartphones
UQC: NOS
Total Quantity: 48
Total Value: (auto-calculated from invoices)
→ Save

Step 5 — Preview and File

→ Preview GSTR-1 → Download PDF (save for records)
→ Submit (locks data — cannot edit after this)
→ File with DSC or EVC (OTP on phone)
→ ARN generated → Download acknowledgement

[Screenshot: Confirmation page showing "GSTR-1 filed successfully" with ARN number]

Filing via Tally Prime (Direct Upload)

For businesses using Tally, GSTR-1 can be filed directly without manual portal entry:

Gateway of Tally → Reports → GST → GSTR-1
→ Select Period: 1-Apr-2025 to 30-Apr-2025
→ Review figures (compare with our table above)
→ Export → Select Format: JSON
→ Upload JSON on GST portal (Step above)

Or use Tally's GST Connected feature (Tally Silver/Gold license):

Gateway of Tally → Reports → GST → GSTR-1
→ Click: Upload to GSTN → Login with GST credentials
→ Tally pushes data directly → Verify on portal → File

GSTR-1 → GSTR-2B: How Your Filing Becomes Your Buyer's ITC

When Sunrise Retail files GSTR-1 on May 11, 2025, here's exactly what happens downstream:

┌──────────────────────────────────────────────────────────────────────┐
│           GSTR-1 FILING — DOWNSTREAM EFFECT ON BUYERS                 │
└──────────────────────────────────────────────────────────────────────┘

SUNRISE RETAIL files GSTR-1 by May 11
                │
                ▼
     ┌──────────────────────┐
     │  GST Portal (GSTN)   │  ← Government's matching engine
     │  processes invoices  │
     └──────────┬───────────┘
                │
        ┌───────┴────────┐
        │                │
        ▼                ▼
┌───────────────┐  ┌──────────────────────┐
│  DIGITAL HUB  │  │  CLOUDSTORE PVT LTD  │
│  (Telangana)  │  │  (Karnataka)         │
│               │  │                      │
│  GSTR-2B      │  │  GSTR-2B             │
│  auto-shows:  │  │  auto-shows:         │
│               │  │                      │
│  Invoice:     │  │  Invoice:            │
│  SR-2025-0042 │  │  SR-2025-0048        │
│  Taxable:     │  │  Taxable:            │
│  ₹4,48,000    │  │  ₹3,30,000           │
│  CGST: 40,320 │  │  IGST: 59,400        │
│  SGST: 40,320 │  │                      │
│               │  │  → They can claim    │
│  CN-2025-0005 │  │    ₹59,400 IGST ITC  │
│  Reversal:    │  │                      │
│  CGST: 2,880  │  └──────────────────────┘
│  SGST: 2,880  │
│               │
│  Net ITC:     │
│  CGST: 37,440 │
│  SGST: 37,440 │
└───────────────┘

If Sunrise Retail had NOT filed → both buyers see NOTHING in GSTR-2B
→ Digital Hub cannot claim ₹37,440 CGST + ₹37,440 SGST ITC
→ Commercial pressure: buyers will call Sunrise Retail immediately

Net Output Tax — Reconciliation Table

This table bridges GSTR-1 (what we reported) to GSTR-3B (what we pay):

This exact row — ₹59,400 IGST · ₹40,320 CGST · ₹40,320 SGST — flows from GSTR-1 directly into Section 3.1(a) of GSTR-3B. There should be zero difference between what GSTR-1 reports and what GSTR-3B uses for §3.1.

Worked Example — Reconciling GSTR-1 with Your Books

After filing, always reconcile:

Any difference triggers an amendment in next month's GSTR-1 (Table 9).

Practice Exercise

Exercise 1: Sunrise Retail also made a cash sale (no invoice issued, B2C) of 3 phones to walk-in customers in Hyderabad at ₹15,000 each on April 15. How does this appear in GSTR-1?

Exercise 2: Sunrise Retail's GSTR-1 is due on 11th May 2025 but Kiran files it on 25th May 2025. Calculate the late fee.

QRMP & IFF — The Deep Dive

QRMP (Quarterly Returns Monthly Payment) is the scheme that lets small taxpayers file GSTR-1 and GSTR-3B quarterly instead of monthly — while still paying tax every month via a challan. Layered on top is the IFF (Invoice Furnishing Facility) — an optional monthly upload of B2B invoices only, so buyers can claim ITC without waiting for the quarter-end GSTR-1.

Eligibility

• Aggregate turnover ≤ ₹5 Crore in the previous financial year
• Filed at least one GSTR-3B in the current year (so brand-new registrations get auto-defaulted based on declared expected turnover)
• Once you cross ₹5 Cr in any quarter, you become ineligible from next quarter onwards — switch to monthly

Opt-In Window

QRMP is not automatic — you have to opt in (the portal does default-assign based on the previous year's turnover, but always verify on your dashboard).

Practical rule: opt in by the 1st of any month within the quarter if you want QRMP from that quarter. Miss the window and the quarter stays monthly.

You can also opt-out mid-year, but the same window rules apply — switching is per quarter, not per month.

Monthly IFF — B2B Invoices Only

The IFF is the safety valve that makes QRMP work for B2B-heavy taxpayers. Every month within the quarter, you can upload only B2B invoices to the portal so that your buyers see them in their GSTR-2B.

Quarter: Apr–Jun 2025

  Apr 25 invoices ─┐
                   ├── IFF (Apr) due 13-May → Apr B2B reaches buyers' GSTR-2B
  May 25 invoices ─┤
                   ├── IFF (May) due 13-Jun → May B2B reaches buyers' GSTR-2B
  Jun 25 invoices ─┘ (no IFF) ─┐
                                ├── GSTR-1 (Q1) due 13-Jul → all of Apr+May+Jun
                                │   B2B + Jun B2C + Exports + HSN + Amendments

Quarterly GSTR-1 Due Dates

Quarterly GSTR-3B — State-Group Split

GSTR-3B for QRMP filers is also quarterly, but due dates vary by state group to spread server load:

Sunrise Retail is in Telangana → Group A → GSTR-3B due 22nd of month after quarter.

Monthly Tax Payment During QRMP — PMT-06 Challan

Even though returns are quarterly, tax must still be paid monthly for Months 1 and 2 of the quarter via Form PMT-06, due by the 25th of next month. Two methods exist:

For Month 3 of the quarter, you don't pay separately via PMT-06 — the final quarterly GSTR-3B picks up the balance liability and adjusts for the two PMT-06 payments already made.

Late payment: 18% p.a. interest applies on late PMT-06 from the 26th of the next month.

When QRMP Goes Wrong — Common Failure Modes

• Forgetting IFF entirely — quarterly filers who never use IFF leave their B2B buyers waiting 2 months for ITC. The buyer relationship suffers more than the saved compliance time is worth.
• Exceeding ₹50 lakh IFF cap — if your monthly B2B exceeds ₹50 lakh, you can't push it all through IFF. Either split across IFF + quarterly GSTR-1 or switch to monthly filing.
• PMT-06 underpayment — Fixed-Sum method works only if current-quarter tax is roughly equal to previous-quarter tax. If the business is growing fast, fixed-sum underpays, and interest accrues silently until the quarterly GSTR-3B reveals the gap.

E-Invoice Auto-Population into GSTR-1

Which GSTR-1 Tables Auto-Populate from E-Invoice Data

The portal pulls IRN data overnight and pre-fills these tables in the draft GSTR-1. You log in, review, edit (where allowed), and submit.

The 24-Hour Edit Window — and What Happens After

Practical Workflow for an E-Invoiced Business

Throughout the month:
  Tally / ERP generates invoice → pushes JSON to IRP
  IRP returns IRN + signed invoice + QR code
  Invoice printed with QR code → delivered with goods
  IRN data sits on IRP

By the 10th of next month (before GSTR-1 filing):
  Log into GST portal → GSTR-1 → "Generate from e-invoice data"
  Portal pulls IRN data, populates Tables 4A, 4B, 4C, 6A, 9B
  You verify, add manual entries for B2C / HSN summary / amendments
  Submit by 11th

Common gotcha — IRN cancelled but not removed from GSTR-1. When you cancel an IRN within 24 hours, the cancellation flows to GSTR-1 ONLY if the cancellation reaches the portal before the next auto-population sync. If the timing is bad (cancellation at hour 23, GSTR-1 sync at hour 24), the cancelled invoice may still appear in your draft GSTR-1 — and you must manually exclude it before submission. Always reconcile the IRP "Cancelled IRNs" report against the draft GSTR-1 list before filing.

For Sunrise Retail (₹1.2 Cr turnover): E-invoicing is NOT mandatory — they're below the ₹5 Cr threshold. They fill GSTR-1 manually (or via Tally JSON export) every month. But once they cross ₹5 Cr — likely Year 2 or Year 3 if growth continues — IRN generation and the auto-population workflow become mandatory from the first day of the next financial year following the breach.

Key Terms

Checklist — what you should now be able to do:

• Identify which GSTR-1 table each sales invoice and credit note belongs to
• Compute net output tax after applying credit notes (the figures that go into Section 3.1 of GSTR-3B)
• Know the filing due date for monthly and QRMP quarterly filers
• Calculate late fees and explain why timely GSTR-1 filing matters for your buyers
• Upload a GSTR-1 via Tally JSON export or directly on the portal