After the introduction of the GST the taxpayers are required to file certain monthly, quarterly and annual returns reporting their transactions and incomes.  Two such returns which are required to be filed by the taxpayer are called GSTR-1 and GSTR-3B.  Both of these returns give the supplies information done by the company. However, there are certain distinct information that needs to be presented through both of these returns. There is a requirement to reconcile both the returns so there are no variations in them and the accurate filing is done. In this article we will be taking a look at the various aspects of GSTR-1 and GSTR-3B.

What is GSTR-1 and the GSTR-3B?

GSTR -1- It is the return that is required to be filed by every taxpayer on monthly or quarterly basis. Through this return the taxpayer is required to give the complete details of all the outward supplies made by him.  In this the tax invoices pertaining to the relevant month shall be uploaded so that the department can track the activities of company.

GSTR-3B – GSTR 3 B is the consolidated return that is required to be filed by 20th of every month. This return contains the details of the supplies made, input tax credit claimed, purchases on which reverse charge is applicable etc are mentioned.

What are the reasons for deviation in GSTR 1 and GSTR 3B?

There can be a difference between the GSTR 1 and the GSTR 3 B due to the reasons mentioned below –

  1. The invoice of a particular transaction and the credit/debit note are recorded at distinct times.
  2. The differences due to the time difference in reporting of the invoices in GSTR 1 and GSTR 3B.
  3. The inter-state transaction recorded in GSTR 1 not GSTR 3B and vica Versa.
  4. The tax shown under the wrong head in any of the particular returns.
  5. Due to the changes in the tax liability between the time of filing the GSTR-1 and the GSTR 3B.
  6. Reporting of supplies under the wrong table in GSTR-3B, but correctly reporting the same when declaring it invoice-wise in GSTR-1.

What is the result of mismatch in GSTR 1 and GSTR 3B?

After considering the situations mentioned above, if any discrepancies are found in Form GSTR – 1 and GSTR -3B across months leading to any shortage of tax paid by the supplier, the same must be paid along with interest. It is, therefore, necessary to conduct this reconciliation for every filing period to ensure that both the returns match, which wouldn’t give rise to any interest that may become payable at a later date.