GSTR-1 and GSTR-3B: Differences and Purpose

GSTR-1 is the statement of your sales (outward supplies), invoice by invoice. GSTR-3B is the summary return where you report your tax liability, claim input credit and pay the tax. A regular taxpayer files both, and mismatches between them are a common reason for notices.

Why both returns matter

GSTR-1 tells the system what you sold, and that data flows into your customers’ GSTR-2B, which decides the credit they can claim. GSTR-3B is where the money moves. If you are newly registered, learn both before your first GST return filing falls due.

Key differences

• Content: GSTR-1 lists invoices, credit and debit notes, exports and an HSN summary. GSTR-3B gives totals of sales, tax, credit and payment.
• Purpose: GSTR-1 feeds your buyers’ credit. GSTR-3B settles your tax.
• Payment: No tax is paid with GSTR-1. Tax is paid while filing GSTR-3B.
• Due date: Monthly filers submit GSTR-1 by the 11th of the next month and GSTR-3B by the 20th. Quarterly filers under the QRMP scheme have a different timetable, with GSTR-1 for the quarter due on the 13th after the quarter ends. Check the GST portal for the exact date, since extensions are sometimes notified.

Who files what

Most registered businesses file both. Composition dealers do not file GSTR-1; they follow a separate quarterly route, see GST composition scheme. Quarterly filing is open to taxpayers with turnover up to Rs. 5 crore in the previous year. Even with no sales you still file, and a GST nil return filing can be done quickly.

Common mistakes

• Reporting different sales figures in GSTR-1 and GSTR-3B.
• Filing GSTR-3B first and forgetting GSTR-1 for the same month.
• Claiming credit in GSTR-3B without matching it to GSTR-2B.
• Skipping nil returns, which leads to late fees and possible cancellation.
• Correcting errors late. Read how input tax credit rules affect corrections.

Related guides: GST due dates calendar, Input Tax Credit, HSN and SAC codes

FAQs

Which is filed first, GSTR-1 or GSTR-3B?

GSTR-1 comes first by due date (11th) and it also feeds your buyers’ credit, so file it before GSTR-3B.

Do I pay tax with GSTR-1?

No. GSTR-1 only reports sales. Tax is paid when you file GSTR-3B.

Do I file GSTR-1 if I made no sales?

Yes. The GST portal says the form must be filed even if there is no business activity.

Want someone to file both on time every month? Talk to a Taxhint expert.