Key takeaways
What this article covers, in order:
- Why this comes up / what goes wrong
- Step-by-step
- Example (fictional figures)
- Common mistakes
- Doing this in HelloBooks
- Frequently asked questions
GST filing is the process of submitting your sales and tax details to the government through returns like GSTR-1 and GSTR-3B. Small business owners often find this task challenging due to the detailed data entry, reconciliation, and strict deadlines involved. This guide provides clear, numbered steps to complete GST filing, explains why it matters, offers a detailed example with figures in Indian rupees, points out common errors to avoid, and describes how HelloBooks supports this process.
Why this comes up / what goes wrong
Many small businesses maintain their books in spreadsheets, Tally, or manual bill books. They spend excessive time entering data and reconciling invoices with tax returns. Errors in invoice details or mismatched figures between GSTR-1 and GSTR-3B can lead to penalties or delayed input tax credit (ITC). Missing deadlines is common without reminders. Understanding the exact filing steps and checks helps avoid these problems and saves time.
Step-by-step
- Collect all outward supply invoices for the tax period: Gather every sales invoice issued in the month or quarter. Each invoice must include the details required by Rule 46 such as supplier and recipient GSTIN, invoice number, date, HSN/SAC codes, taxable value, tax rates, and tax amounts.[cgst-rule-46/rule46-particulars]
- Prepare your GSTR-1 (Outward Supplies) data: List all sales invoices in the GSTR-1 format, including taxable supplies, exempted supplies, zero-rated supplies, and advances. Verify invoice values and tax amounts match your records.
- Log in to the GST portal (https://gst.gov.in): Use your GSTIN and password.
- Enter or upload GSTR-1 data: You can manually input invoice details or upload a JSON file. Confirm all invoices for the period are included and review the summary totals.
- Submit GSTR-1 by the due date: For monthly filers, this is the 11th day of the month following the tax period.[gstr1-due-date/gstr1-monthly-11th] Quarterly filers under the QRMP scheme must file by the 13th of the month after the quarter.[qrmp-scheme/qrmp-dates]
- Prepare GSTR-3B (Summary Return): Summarize your outward supplies, inward supplies eligible for ITC, and tax liabilities. Include taxable values, CGST, SGST, IGST, and cess amounts.
- Submit GSTR-3B by its due date: Monthly GSTR-3B is due by the 20th of the month after the tax period.[gstr3b-due-date/gstr3b-monthly-20th] QRMP filers have deadlines on the 22nd or 24th depending on their State or UT.[qrmp-scheme/qrmp-dates]
- Calculate and pay GST liability: Determine net tax payable by subtracting eligible ITC from the tax on outward supplies. Pay online on the GST portal using available payment modes.
- Download and save filed returns: Keep copies of your filed GSTR-1 and GSTR-3B for record-keeping.
- Regularly reconcile your ITC claims: Compare your purchase invoices with GSTR-2B (auto-generated by GSTN) to ensure accurate ITC claims. See GST return filing (GSTR-1, GSTR-3B) for details.
Example (fictional figures)
Assume a business has the following sales in March 2024:
- Taxable sales (goods): ₹1,00,000
- GST rate assumed: 18% (CGST 9%, SGST 9%)
- No exempt or zero-rated supplies
Calculate CGST:
₹1,00,000 × 9% = ₹9,000
Calculate SGST:
₹1,00,000 × 9% = ₹9,000
Total GST:
₹9,000 + ₹9,000 = ₹18,000
GSTR-1 entries:
- Taxable value: ₹1,00,000
- CGST amount: ₹9,000
- SGST amount: ₹9,000
GSTR-3B summary:
- Outward taxable supplies: ₹1,00,000
- CGST payable: ₹9,000
- SGST payable: ₹9,000
- Total tax payable: ₹18,000
The business pays ₹18,000 GST online by the 20th of April 2024.
Common mistakes
- Incomplete or incorrect invoice details: Always verify invoices include all particulars required by Rule 46 before filing.[cgst-rule-46/rule46-particulars]
- Missing filing or payment deadlines: Set reminders for GSTR-1 (11th) and GSTR-3B (20th) monthly deadlines to avoid penalties.[gstr1-due-date/gstr1-monthly-11th][gstr3b-due-date/gstr3b-monthly-20th]
- Mismatch between GSTR-1 and GSTR-3B figures: Use consistent invoice data and cross-check totals.
- Ignoring QRMP scheme deadlines: If you file quarterly under QRMP, follow its specific due dates for GSTR-1 and GSTR-3B.[qrmp-scheme/qrmp-dates]
- Not reconciling ITC claims with GSTR-2B: Regular reconciliation ensures correct input tax credit claims (see GST return filing (GSTR-1, GSTR-3B)).
Doing this in HelloBooks
HelloBooks helps you file your GSTR-1 and GSTR-3B returns directly from the invoices and expenses you record, eliminating manual data entry and JSON file exports. The software builds your returns automatically and files them to the GSTN portal. It also creates GST-compliant invoices with the correct CGST/SGST or IGST split and HSN/SAC codes based on your customer’s GSTIN, ensuring your invoices meet Rule 46 requirements consistently. Learn more at HelloBooks for India and GST return filing (GSTR-1, GSTR-3B).
Frequently asked questions
What is the difference between GSTR-1 and GSTR-3B?
GSTR-1 contains detailed invoice-wise data of outward supplies (sales), while GSTR-3B is a summary return showing total taxable supplies, tax liabilities, ITC claimed, and tax payments. Both returns must be filed monthly or quarterly depending on your GST registration.
What are the GST filing dates?
Monthly GSTR-1 is due by the 11th of the following month, and GSTR-3B by the 20th. Quarterly filers under the QRMP scheme file GSTR-1 by the 13th and GSTR-3B by the 22nd or 24th depending on the State or UT.[gstr1-due-date/gstr1-monthly-11th][gstr3b-due-date/gstr3b-monthly-20th][qrmp-scheme/qrmp-dates]
Can I file GST returns without software?
Yes, you can file returns manually on the GST portal by entering or uploading your invoice data. However, using software like HelloBooks can save time by generating returns directly from your recorded invoices and filing them automatically.
What are GST filing charges?
GST filing charges vary by service providers and software. HelloBooks offers a free plan that includes up to 200 transactions per year with GSTR-1 and GSTR-3B filing for one GSTIN. Visit pricing for details.
Is GST filing different in other countries like Alberta or Singapore?
GST filing processes vary by country. This guide covers GST filing under Indian law only. For other countries, consult their local tax authorities or experts.
Key takeaways
- Collect all sales invoices with full Rule 46 details before filing.
- File GSTR-1 by the 11th and GSTR-3B by the 20th of the following month if filing monthly.
- Prepare GSTR-3B as a summary of tax liabilities and payments.
- Avoid common mistakes by verifying invoice data, meeting deadlines, and reconciling ITC.
- HelloBooks automates GST-compliant invoicing and direct filing of GSTR-1 and GSTR-3B.
Start your GST filing today with HelloBooks. Begin on the Free plan (200 transactions a year, GSTR-1 and 3B filing for one GSTIN) at our pricing page.
This article is general information, not tax or legal advice. Rules change; confirm the current position on gst.gov.in or with your chartered accountant before acting.
