GSTR-1 & GSTR-3B Due Date Extended – Jan 2025

Before exploring the details of the deadline extension, it’s important to understand the significance of GSTR-1 and GSTR-3B — two key returns in the GST compliance framework.

GSTR-1

GSTR-1 is a monthly or quarterly return that businesses file to report their outward supplies, i.e., sales. It contains detailed information on sales invoices, export transactions, and inter-state supplies. This return ensures accurate reporting of the movement of goods and services and helps the GST authorities track tax liabilities.

• Who files it?
  Taxpayers with an annual turnover exceeding ₹5 crore must file GSTR-1 monthly. Smaller businesses can opt for quarterly filing under the QRMP (Quarterly Return Monthly Payment) scheme.

• Purpose:
  GSTR-1 provides the sales data that is later matched with GSTR-3B for reconciliation. It plays a vital role in the overall tax reporting and compliance process.

GSTR-3B

GSTR-3B is a summary return that businesses use to declare and pay their GST liabilities. Filed monthly or quarterly (based on the taxpayer’s eligibility), it includes a consolidated summary of both outward (sales) and inward (purchases) supplies.

• Function:
  It is a self-assessment return where businesses report GST payable, claim input tax credit (ITC), and pay the net tax liability.

• Importance:
  Timely filing of GSTR-3B is essential to avoid penalties, interest, and disruption in claiming ITC. Since it directly impacts tax payments and credit claims, this form is a core component of GST compliance