by What is GSTR-1?
GSTR-1, or the Goods and Services Tax Return-1, It is a document that provides details of outward supplies made by a registered taxpayer. These supplies may include sales, sales returns, exports, and other relevant transactions.
GSTR-1 must be filed by the 10th of each month to report transactions for the previous month.
Why is GSTR-1 Important?
GSTR-1 is a vital document for both businesses and the government. Here’s why it’s crucial:
Compliance with GST Regulations: Filing GSTR-1 is a legal requirement for registered GST taxpayers. Non-compliance can lead to penalties and legal consequences.
Input Tax Credit (ITC): Accurate GSTR-1 reporting ensures that businesses can claim the correct amount of Input Tax Credit, which helps reduce their tax liability.
Data Accuracy: By reporting all outward supplies, businesses help maintain transparency in the tax system, reducing the likelihood of tax evasion.
GST Reconciliation: GSTR-1 data is used for reconciliation with the GSTR-3B return, which helps in confirming the tax liability and compliance
Generate GSTR-1
To generate the GSTR-1 report:
Go to “Gateway of Tally.”
Click on “Display More Reports”
Select “Statutory Reports.”
Choose “GST”
Select “GSTR-1”
Verify and Correct Errors
Review the GSTR-1 report generated by Tally Prime. If you find any discrepancies or errors, correct them in your transactions and regenerate the report.
File GSTR-1
After verifying and ensuring the accuracy of the report, you can use the data from Tally Prime to file your GSTR-1 return online on the GST portal.
Suppose you run a retail business and made sales of goods worth Rs. 50,000 to a local customer during a specific tax period. The GST rate applicable to these goods is 18%. Here’s how you would record and report this transaction in Tally Prime:
1 Enter a sales voucher in Tally Prime:
Debit: Customer’s Account – Rs. 50,000
Credit: Sales Account – Rs. 50,000
GST (18%) – Rs. 9,000
2 Verify and ensure that the transaction is correctly recorded.3 Generate the GSTR-1 report in Tally Prime.
4 Review the report and ensure that the Rs. 9,000 GST collected is accurately reflected.
5 File the GSTR-1 return on the GST portal, using the data generated by Tally Prime.
