GSTR-1A: Benefits, Format & Deadline

The Finance Minister of India chaired the 53rd GST Council Meeting on 22nd June 2024. In this significant meeting, the council jointly recommended reintroducing GSTR-1A, a crucial step to provide an opportunity to amend the details submitted or to declare additional details, if any, in GSTR-1 for the corresponding tax period. 
In this blog, we will discuss everything about GSTR-1A, including features, benefits, deadlines, and more. Keep reading! 

What is GSTR-1A 

GSTR-1A, a user-friendly tool, allows a registered taxpayer to update the sales data for GSTR-1 that was submitted earlier. This facility was available before but decided to discontinue in 2017; now, the GST Council is looking forward to reintroducing it in June 2024. 

The data is fetched from the buyer’s GSTR-2B when they modify any data. The seller has an option to either accept or reject the changes. If changes are received, the data will be reflected in the GSTR-3B. 

When Should We File GSTR-1A? 

You can file GSTR-1A after filing GSTR-1 for the given tax period but before GSTR-3B. More details are yet to be announced. 

What if one has to amend after filing GSTR-3B? 

As per the latest update, once you make amendments to GSTR-1A, they cannot be amended again in subsequent months’ GSTR-1. However, you can modify unamended records in subsequent months’ GSTR-1. 

How Does GSTR-1A Work?

To know the significance of GSTR-1A, let’s understand with an example:

• ABC purchased 100 water bottles worth Rs. 500 from XYZ General Store
• Due to a data entry error, XYZ General Store updated Rs. 50 in sales in GSTR-1
• The data from XYZ General Store will be updated in the GSTR-2A of ABC. ABC finds this mistake and corrects it to Rs. 500
• This change is reflected in the ABC’s GSTR-1A
• Upon receiving this correction, ABC’s GSTR-1 gets updated automatically 

Format of GSTR-1A

After the recommendation of the GST Council to reintroduce GSTR-1A, the new format is yet to be announced. Since this is a reintroduction, there is an old format, which is discussed below: 

Here, we have explained each heading of the GSTR-1A form, along with the details to be reported. 

1. GSTIN: Upon registration, taxpayers are allotted a 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
2. Name of the taxpayer: It included the legal and trade name of the taxpayer.
3. Month, Year: Here, you must mention the month and year for which GSTR-1A is being filed.
4. Taxable outward supplies made to registered persons, including supplies attracting reverse charge other than the supplies covered in Table No. 4; under this heading, mention the following details:

• Updates in regular sales invoices (no reverse charge).
• Updates in sales invoices attract reverse charges.

Note – For exports, check the following table: 

5. Zero-rated supplies made to SEZ and deemed exports

Under this heading, you can update:

• Updates in the supplies made to SEZ units or SEZ developers. 
• Updates in supplies, which are deemed as exports. 
• In the case of actual exports, the updates cannot be reflected as the buyer will not file a GST return. 

6. Debit notes, credit notes (including amendments thereof) issued during the current period

Under this heading, you will receive updates if buyers make changes to debit notes or credit notes issued by you. 

Note: This format was issued in 2017. 

Benefits of Introducing GSTR-1A 

Prevention of errors: By enabling consistency between records, businesses can safeguard themselves against compliance issues and incorrect tax credits, ensuring financial integrity and operational efficiency. 

Improved Compliance Accuracy: GSTR-1A enables accurate sales reporting by allowing businesses to verify transactions before filing tax returns, which improves compliance accuracy. 

Less Risk of Penalties: With GSTR-1A, businesses will have the facility to make corrections, helping minimize the potential risks of penalties due to incorrect filings. 

Simplified ITC Claims: Aligning the data between GSTR-1 of the supplier and GSTR-2A of the recipient helps prevent inconsistency, leading to simplified ITC claims. 

Features of GSTR-1

Auto-population of revised liability: When GSTR-1A is filed, the revised liability will be automatically populated in GSTR-3B. This seamless integration ensures that you get error-free tax liability and efficient reporting. 

Better ITC Verification: GSTR-1A plays an essential role in verifying purchased goods or services. It enables you to cross-check the details given by suppliers in their GSTR-1 against the auto-fetched data in their GSTR-2A. This verification is essential for businesses to claim Input Tax Credit (ITC) on procurements. 

Facility of Amendment: With the introduction of GSTR-1, businesses have a provision to rectify any errors in GSTR-1 within the same time period. Once it is implemented, businesses can make adjustments before submitting GSTR-3B for the corresponding tax period. 

Ending Notes 

Now that you know everything GSTR-1A means and how it can benefit your business, after reading this blog, remember that our support team is always ready to assist you with any questions you may have. They are here to guide you through the process. One more thing: If you haven’t subscribed to Munim—India’s most trusted accounting software—we encourage you to do so before our offer of a free subscription ends. 

Frequently Asked Questions on GSTR-1A 

Q. What is the purpose of GSTR-1A? 

Ans. The GST Council has recommended that GSTR-1A be introduced to enable taxpayers to amend the details submitted in GSTR-1, if any. This will be done before the return is filed in GSTR-3B for the corresponding tax period. 

Q. How to file GSTR without GST software? 

Ans. Here is the step-by-step procedure to file GSTR without using GST return filing software:

1. Login to the GST portal
2. Go to Service > Returns > Returns Dashboard
3. Find the GSTR-1A title for the given tax period

Q. What is the difference between GSTR-1 and GSTR-1A?

Ans. The GST Council is considering reintroducing GSTR-1A, which promotes accuracy and transparency in GST return filing. This new form will work to rectify errors or omissions in the GSTR-1 submission.