GSTR-3B vs GSTR-1: What's the Difference, and When Do You File Them?
- adityas41
- Feb 24
- 8 min read
If you're a registered taxpayer under India's Goods and Services Tax (GST) regime, you're likely familiar with the various returns that need to be filed periodically. Two of the most important among these are GSTR-3B and GSTR-1. While both are crucial for GST compliance, they serve different purposes and have different filing timelines. In this post, we'll delve into the key differences between GSTR-3B and GSTR-1, and clarify when you need to file each of them.
Understanding GSTR-3B and GSTR-1
Before we compare GSTR-3B and GSTR-1, let's first understand what each of these returns entails.
What is GSTR-3B?
GSTR-3B is a simplified monthly GST return that needs to be filed by all regular GST-registered taxpayers. It's a summary return that provides an overview of your outward supplies, input tax credit (ITC) claims, and net tax liability for the month.
Think of GSTR-3B as a provisional return that helps the government track your GST liability and revenue collection on a monthly basis. It was introduced as a temporary measure to simplify the return filing process until the full-fledged GSTR-3 return was implemented.
What is GSTR-1?
GSTR-1, on the other hand, is a detailed statement of your outward supplies for the tax period. It's a monthly or quarterly return (depending on your turnover) that needs to be filed by all regular GST-registered taxpayers making outward supplies of goods or services.
In GSTR-1, you provide invoice-level details of all your sales, including B2B (Business to Business) invoices, B2C (Business to Consumer) invoices, export invoices, credit notes, debit notes, and more. It's a comprehensive return that forms the basis for your customers' ITC claims and helps in the matching and reconciliation process.
Now that we have a basic understanding of GSTR-3B and GSTR-1, let's dive into the key differences between them.
GSTR-3B vs GSTR-1: Key Differences
While both GSTR-3B and GSTR-1 are GST returns related to your outward supplies, they differ in several aspects. Here are the main points of distinction:
1. Level of Detail
The primary difference between GSTR-3B and GSTR-1 lies in the level of detail required in each return.
GSTR-3B: In GSTR-3B, you provide aggregate values of your outward supplies, ITC claims, and tax liability. You don't need to furnish invoice-level details or the GSTINs of your customers. It's a summary return that gives a bird's eye view of your GST position for the month.
GSTR-1: In contrast, GSTR-1 requires you to provide granular, invoice-level details of all your outward supplies. You need to report the invoice number, date, taxable value, GST rates, and amounts for each transaction. For B2B supplies, you also need to mention the GSTIN of the customer. It's a detailed return that captures the minutiae of your sales.
To understand this difference better, let's consider an example. Suppose you're a manufacturer of electronic goods, and you make the following sales in a month:
10 invoices to registered dealers, each worth Rs. 1 lakh + 18% GST
50 invoices to unregistered customers, each worth Rs. 10,000 + 18% GST
2 export invoices, each worth Rs. 5 lakhs
In GSTR-3B, you'll report the aggregate taxable value and GST amount for each category:
B2B supplies: Rs. 10 lakhs + Rs. 1.8 lakhs GST
B2C supplies: Rs. 5 lakhs + Rs. 0.9 lakhs GST
Exports: Rs. 10 lakhs (zero-rated)
But in GSTR-1, you'll have to provide the details of each invoice separately, including the invoice number, date, taxable value, GST rate, and amount. For the B2B invoices, you'll also need to mention the GSTINs of the dealers.
As you can see, GSTR-1 requires a much more granular level of reporting compared to GSTR-3B.
2. Filing Frequency
Another key difference between GSTR-3B and GSTR-1 is the frequency of filing.
GSTR-3B: GSTR-3B is a monthly return that needs to be filed by the 20th of the following month. For example, GSTR-3B for the month of April needs to be filed by 20th May. This frequency is the same for all regular taxpayers, irrespective of their turnover.
GSTR-1: The filing frequency of GSTR-1 depends on your aggregate turnover in the previous financial year:
If your turnover is above Rs. 5 crores, you need to file GSTR-1 monthly by the 11th of the following month.
If your turnover is up to Rs. 5 crores and you've opted for quarterly filing, you need to file GSTR-1 quarterly by the last date of the month following the quarter.
If your turnover is up to Rs. 5 crores and you've opted for monthly filing, you need to file GSTR-1 monthly by the 11th of the following month.
So, while GSTR-3B has a uniform monthly filing timeline, GSTR-1 can be filed monthly or quarterly based on your turnover and preference.
3. Purpose and Use
The purpose and use of GSTR-3B and GSTR-1 also differ significantly.
GSTR-3B: The main purpose of GSTR-3B is to declare your tax liability and ITC claims on a monthly basis. It helps the government track your GST payments and monitor the overall revenue collection. Based on the liability declared in GSTR-3B, you need to make the tax payment in cash or through ITC utilization.
GSTR-3B is also used for ITC reconciliation with GSTR-2B (the auto-generated statement of your inward supplies). Any mismatches between the ITC claimed in GSTR-3B and the details available in GSTR-2B need to be rectified in subsequent returns.
GSTR-1: The primary purpose of GSTR-1 is to provide the details of your outward supplies to your customers and to the government. The information you declare in GSTR-1 gets auto-populated in your customers' GSTR-2A (and subsequently, GSTR-2B), which helps them claim ITC on the purchases made from you.
GSTR-1 is also used for matching and reconciliation with your customers' ITC claims. Any discrepancies between your GSTR-1 and their GSTR-2A can lead to ITC mismatches and potential disputes.
Moreover, GSTR-1 data is used for generating e-way bills (in some cases) and for filing other returns like GSTR-4 (for composition taxpayers) and GSTR-6 (for input service distributors).
In essence, while GSTR-3B is primarily for declaring your own tax liability, GSTR-1 is for providing information to your customers and facilitating the flow of ITC in the GST ecosystem.
When to File GSTR-3B and GSTR-1
Now that we've understood the key differences between GSTR-3B and GSTR-1, let's clarify when you need to file each of these returns.
GSTR-3B Filing Timeline
As mentioned earlier, GSTR-3B is a monthly return that needs to be filed by the 20th of the following month. This due date is applicable to all regular taxpayers, irrespective of their turnover.
For example, the GSTR-3B filing timeline for the financial year 2023-24 would be:
Month | Due Date |
April | 20th May |
May | 20th June |
June | 20th July |
... | ... |
March | 20th April |
If the due date falls on a weekend or a public holiday, the return can be filed on the next working day.
It's important to note that GSTR-3B needs to be filed even if you have no outward supplies (nil return) for the month. Failure to file GSTR-3B within the due date can attract late fees and interest on the tax liability.
GSTR-1 Filing Timeline
The filing timeline for GSTR-1 depends on your aggregate turnover in the previous financial year and the frequency option you've chosen (monthly or quarterly).
Monthly GSTR-1: If your turnover is above Rs. 5 crores, or if you've opted for monthly filing despite having a turnover up to Rs. 5 crores, you need to file GSTR-1 by the 11th of the following month.
For example, the monthly GSTR-1 filing timeline for the financial year 2023-24 would be:
Month Due Date - April 11th, May 11th, June 11th July......March 11th, April 11th
Quarterly GSTR-1: If your turnover is up to Rs. 5 crores and you've opted for quarterly filing, you need to file GSTR-1 by the last date of the month following the quarter.
For example, the quarterly GSTR-1 filing timeline for the financial year 2023-24 would be:
Quarter Due Date - April to June 31st, July to September 31st, October to December 31st, January to March 30th
Like GSTR-3B, GSTR-1 also needs to be filed even if you have no outward supplies for the tax period. Delayed filing of GSTR-1 can lead to late fees and blocking of e-way bill generation.
Importance of Timely Filing
Filing both GSTR-3B and GSTR-1 within the prescribed timelines is crucial for maintaining GST compliance and avoiding any legal or financial consequences. Here's why:
Late Fees: Delayed filing of GSTR-3B attracts a late fee of Rs. 50 per day (Rs. 25 each under CGST and SGST/UTGST), subject to a maximum of Rs. 10,000. For GSTR-1, the late fee is Rs. 200 per day (Rs. 100 each under CGST and SGST/UTGST), subject to a maximum of Rs. 5,000.
Interest on Tax Liability: If you fail to file GSTR-3B within the due date, you'll also be liable to pay interest at 18% per annum on the tax liability declared in the return. This interest is applicable from the due date till the date of payment.
Blocking of E-Way Bills: If you don't file GSTR-3B for two consecutive tax periods, your e-way bill generation facility may be blocked. Similarly, if you don't file GSTR-1 for two consecutive tax periods, your e-way bill generation facility may be blocked for outward movement of goods.
ITC Mismatch for Customers: Delayed filing of GSTR-1 can lead to your customers not being able to claim ITC on time, as your invoice details won't reflect in their GSTR-2A. This can strain your business relationships and impact your customers' cash flow.
Scrutiny and Assessment: Late filing of returns can also invite scrutiny from the GST authorities, who may initiate an assessment of your tax liability based on the information available with them. This can lead to additional compliance burden and potential disputes.
Therefore, it's in your best interest to file both GSTR-3B and GSTR-1 within the prescribed due dates, and maintain a clean compliance track record.
Assistance in Filing GSTR-3B and GSTR-1
Filing GSTR-3B and GSTR-1 accurately and on time can be a complex and time-consuming process, especially for businesses with a large volume of transactions. It requires meticulous record-keeping, data reconciliation, and adherence to the legal requirements.
That's where Fiscal Flow comes in. Our team of experienced chartered accountants and GST experts can help you streamline your return filing process and ensure end-to-end compliance. Here's how we can assist:
Invoicing and Record-Keeping: We can help you maintain accurate and up-to-date records of your outward supplies, including tax invoices, debit notes, credit notes, and other related documents. This ensures that you have all the necessary information readily available when it's time to file returns.
Data Reconciliation: Our team can reconcile your GSTR-1 and GSTR-3B data with your books of accounts and other GST returns to identify and rectify any mismatches or discrepancies. This helps prevent errors and delays in ITC claims for your customers.
Return Preparation and Filing: We can prepare your GSTR-3B and GSTR-1 returns based on the reconciled data and file them on your behalf within the prescribed due dates. Our experts ensure that all the details are accurately captured and that the returns are digitally signed before submission.
ITC Matching and Reconciliation: We can help you match and reconcile your ITC claims with your suppliers' GSTR-1 data, and address any mismatches or discrepancies. This ensures that you're able to claim the correct amount of ITC and avoid any potential disputes.
GST Advisory and Support: Beyond return filing, our team provides comprehensive GST advisory and support services. We can help you navigate complex GST scenarios, optimize your tax position, and ensure end-to-end compliance with all GST regulations.
With Fiscal Flow as your trusted GST compliance partner, you can focus on growing your business while we take care of the nitty-gritty of return filing and other GST formalities.
Conclusion
GSTR-3B and GSTR-1 are two of the most important GST returns that every registered taxpayer needs to file. While they both relate to your outward supplies, they serve different purposes and have different filing timelines.
GSTR-3B is a summary return that provides an overview of your tax liability and ITC claims on a monthly basis, while GSTR-1 is a detailed statement of your outward supplies that helps in ITC flow and reconciliation.
Filing both these returns accurately and on time is essential for maintaining GST compliance, avoiding penalties, and facilitating seamless business transactions. However, the process can be complex and time-consuming, especially for businesses with a large volume of transactions.
That's where partnering with a trusted compliance service like Fiscal Flow can make all the difference. Our expert team can handle your end-to-end GST compliance needs, from record-keeping and data reconciliation to return filing and ITC matching.
So, if you want to take the stress out of GST compliance and focus on what you do best – growing your business – let Fiscal Flow be your guide and support system. Contact us today to learn more about how we can help you navigate the world of GSTR-3B, GSTR-1, and beyond.
