Form GSTR 1 is a GST return, a statement of outward supplies, that needs to be filed by every registered taxpayer barring a few exceptions on a monthly or quarterly basis as per their annual aggregate turnover. Quarterly GSTR-1 filers now have the option of using the Invoice Furnishing Facility (IFF) to report outward supplies to registered individuals (B2B supplies) in the first two months of the quarter.
GSTR-1 filing process changes are seen time and again. The continuous updates and technology changes are to improve its performance and user experience, resulting in improvements in the summary generation process, faster response times, and a better user experience for taxpayers.
We informed you about the prior phase of GSTR-1/IFF improvements and GSTR 1 filing process changes that took place in November 2021. During that time, new features and enhancements were brought about by the GSTN and thus reciprocating the same, we implemented some enhancements in our IRIS GST Software.
These GSTR 1 filing process changes are majorly to address the inconvenience taxpayers face during GSTR 1 summary preparation on the GST system. Up until now, once invoices were saved at the GST system, the GSTR 1 summary was created automatically in the GST system. On the IRIS platform, this summary was shown in a comparative manner after it is generated.
As per the new process, the summary generation on the GST system needs to be initiated by the taxpayer and will not be auto-generated after the ‘save process’ is completed. In tune with this change in the GST system, we have updated our GSTR 1 filing process which is as follows:
The submit button has been removed:
The current two-step GSTR-1/IFF filing method, which includes the ‘Submit’ and ‘File’ buttons, will be combined into a single filing process. Now no need to submit a return. Instead of this, proceed to file step is introduced. The submit step is removed so your return will not get freezed till the time you do not file your return. Multiple time data saved is allowed even after doing proceed to file.
Change in summary structure:
With this removal of the submission step, GSTN added one step of proceeding to file this will update the GSTN summary. They also made changes to the summary structure. Now onwards there will be two types of summaries – a short summary and a long summary.
Before the filing of GSTR-1/IFF, taxpayers will now be presented with a table-by-table consolidated summary. This aggregated summary will include a complete and table-by-table summary of the taxpayers’ records. Before filing, this will provide a thorough picture of the records added in GSTR-1/IFF. Here along with the main sections now subsection details will also come in summary. For example, B2B section will have subsection details like B2B_4A TABLE, B2B_4B TABLE, B2B_6C TABLE, B2B_SEWOP and B2B_SEWP details.
Also in addition to subsections details now for amended sections, net values I.e. (Amended-Original) will also be available.
In addition to the above one new section related to total liability got introduced. This will show auto computed liability based on GSTR 1 which will get auto-populated in GSTR 3B.
The Long summary will also include all the details which are there in short summary and along with this, additionally, it will contain a recipient-by-recipient summary, which will include the total value of the supplies as well as the total tax associated with such goods for each recipient.
Let us understand the steps in detail: (IRIS GST Software)
- Upload, Create GSTR 1 and Save – The first step will see no change.
- Generate GSTN Summary with Proceed to File will be available. This option will be activated when saving data to the GSTN request is complete.
- Short Summary generation on the GST system could be instantaneous or take some time, depending on the load on the GST system. Once you have initiated the summary to be generated, the IRIS system will check the status with GSTN and show you the message accordingly on UI. If a message is like “Summary Generation is in Progress” appears on the screen then after some time the user again needs to click on the “Generate GSTN Summary” button so that the summary will finally get updated and you can see GSTN summary values on UI.
- At the time of filing, you will get the latest short summary before proceeding to file.
If you want to download the long summary then that will be available through GST DATA functionality.
– Prakash Kinage, Indirect Taxation Head, Forbes Marshall Group
IRIS Sapphire – GST Reconciliation, from the house of IRIS GST – India’s leading GSP, has been built considering the requirements of various industries such as manufacturing, pharmaceuticals, automobiles etc. and has market-tested logic to reconcile the buyer-supplier data across various parameters to reduce manual effort.
With IRIS Sapphire’s smart reconciliation – you can easily identify invoice mismatches between GSTR-2A and your purchase books and take necessary actions to maximize your ITC claim!
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