Complete understanding about GSTR-1A

Complete understanding about GSTR-1A

What is GSTR-1A?

GSTR-1A is a correction statement used to make amendments to the details of supplies reported in GSTR-1. Any corrections accepted in GSTR-1A will automatically update the details in GSTR-1.

Who needs to file GSTR-1A?

Every taxpayer must file GSTR-1A if there are any proposed changes in GSTR-2A, which will then be auto-populated in GSTR-1A.

When is GSTR-1A generated?

GSTR-1A can be generated after the completion of the due date of GSTR-2 if the GSTR-1 has been filed before the receiver files GSTR-2, GSTR-4, or GSTR-6.

Conditions to generate GSTR-1A:

1. The recipient in GSTR-2, GSTR-4, or GSTR-6 performs actions like rejecting, changing, or adding new details to the data provided by the supplier.
2. GST Recipient submits GSTR-2, GSTR-4, or GSTR-6 return on or before the 17th of the month.
3. The supplier has not filed or generated GSTR-3.
4. GST supplier has not submitted GSTR-1A.

Working of GSTR-1A:

When the seller files GSTR-1 showing sales, the data flows into the buyer’s GSTR-2. If the buyer finds any errors and corrects them, the changes reflect in the seller’s GSTR-1A. Upon the seller’s acceptance, the corrected data updates in the seller’s GSTR-1. example: If Mr. X (seller) reports a sale of 4000 chocolates for Rs 500 incorrectly in GSTR-1, Mr. Y (buyer) can correct this in GSTR-2. The corrected data will then appear in Mr. X’s GSTR-1A. Upon acceptance, Mr. X’s GSTR-1 will update with the correct information.

Downloading GSTR-1A:

1. Log in to the GST portal.
2. Navigate to Services > Returns > Return Dashboard.
3. Select the financial year and tax period.
4. GSTR-1A for the selected period will be displayed.

Format of GSTR-1A

GSTR-1A includes five headings:

1. GSTIN: The unique 15-digit Goods and Services Taxpayer Identification Number.
2. Name of the Taxpayer, Month, and Year: The legal and trade name of the taxpayer, along with the filing period.
3. Outward Supplies made to Registered Persons (including reverse charge): Modifications to sales invoices, including those attracting reverse charge.
4. Zero-Rated Supplies to SEZ and Deemed Exports: Alterations in supplies to SEZ units or developers and deemed exports.
5. Debit and Credit Notes Issued: Changes made by buyers to these notes will be specified.

Timeline Date for GSTR-1A

GSTR-1A for a month must be filed before the 16th of the following month. Changes must be accepted or rejected between the 16th and 17th. Upon acceptance, data in GSTR-1 is updated automatically.

Allowed actions in GSTR-1A:

• Reject: The supplier can reject the proposed changes.
• Accept: The supplier can accept correct changes.
• Pending: If no action is taken, changes will roll over to the next period’s GSTR-1.

Key Points and Actions Related to GSTR-1A

Action Timing for GSTR-1A :

Taxpayers can start taking action on the auto-populated details in GSTR-1A after the expiry of the due date for GSTR-2, which is the 15th of the subsequent month or any other notified date.

Changing Status in GSTR-1A

• • Taxpayers can change the status (accept, reject, pending) of any record in GSTR-1A any number of times up until the submission of GSTR-1A. Once GSTR-1A is submitted, the actions (status) cannot be changed.

Modifications After Submission

• • No changes can be made to the invoices once GSTR-1A has been submitted.

Enabling the Submit Button

• To enable the SUBMIT button in GSTR-1A, the taxpayer must select the checkbox for acknowledgment.

Actions for Auto-Populated Amendments

• If GSTR-1A contains auto-populated amended tables (such as table 5A, table 8(1A)), the taxpayer can either accept or reject the Invoice/Credit Note/Debit Note.

Actions Not Permitted in GSTR-1A

• • Not Permitted Actions:
    • Adding any new invoices.
    • Modifying any changes or additions made by the recipients.

Scenarios for Generating GSTR-1A

There are four main scenarios in which GSTR-1A can be generated, each involving interactions between the seller’s GSTR-1 and the buyer’s GSTR-2, GSTR-4, or GSTR-6:

Scenario 1: Modifications by Counterparty

• Situation: GSTR-1 has been filed by the taxpayer. The counterparty modifies invoices, credit notes, or debit notes in GSTR-2A, GSTR-4A, or GSTR-6A. The modified details will be populated in GSTR-1A of the taxpayer.

Scenario 2: Rejections by Counterparty

• GSTR-1 has been filed by the taxpayer. The counterparty rejects invoices, credit notes, or debit notes in GSTR-2A, GSTR-4A, or GSTR-6A.The rejected details will be populated in GSTR-1A of the taxpayer.

Scenario 3: Additions by Counterparty

• GSTR-1 has been filed by the taxpayer. The counterparty adds missing invoices, credit notes, or debit notes in GSTR-2, GSTR-4, or GSTR-6 that were not uploaded by the taxpayer in GSTR-1. The added details will be populated in GSTR-1A of the taxpayer.

Scenario 4: Early Filing by Counterparty

• GSTR-1 has not been filed by the taxpayer. The counterparty files the return GSTR-2, GSTR-4, or GSTR-6 before the taxpayer files GSTR-1. All B2B invoices, credit notes, and debit notes added by the counterparty in GSTR-2, GSTR-4, or GSTR-6 will be populated in GSTR-1A of the taxpayer.

Actions and Timelines for GSTR-1A

Actions Before and After the 17th:

• If actions on GSTR-1A are taken before the 17th but submitted after the 17th, it is assumed that actions are taken after the 17th. The system will prompt a message that these transactions will be added to the GSTR-1 of the next tax period.

Handling Scenarios 1, 2, and 3:

• On Acceptance: The changes will become part of GSTR-1A for the same tax period, and GSTR-1 will stand amended.
• On Rejection: The changes will not become part of GSTR-1.

Handling Scenario 4:

• Since GSTR-1 has not been filed earlier, there is no date restriction for taking action on GSTR-1A. Actions can be taken until GSTR-1 is filed.
• On Acceptance in GSTR-1: The changes will become part of GSTR-1 for the same tax period.
• On Rejection in GSTR-1: The changes will not become part of GSTR-1.

FAQs related GSTR-1A

How does GSTR-1A work?

Example: If ABC & Co. mistakenly reports a sale as Rs. 400,000 instead of Rs. 600,000, the buyer, XYZ, corrects it in GSTR-2, reflecting the change in ABC & Co.’s GSTR-1A.

Is it compulsory to submit GSTR-1A before generating GSTR-3?

No, it’s not compulsory.

Submit button is disabled in GSTR-1A. What should I do?

Select the acknowledgment checkbox to enable the submit button.

Actions not permitted in GSTR-1A?

Suppliers cannot make changes to invoices.

Can invoices be amended after submitting GSTR-1A?

No changes can be made post-submission.

How to check GSTR-1 status?

Log in to the Goods and Services Tax portal, go to File GST returns, enter the relevant Financial Year & month, and click on search to check the current status.

In Summary

GSTR-1A provides a mechanism for taxpayers to correct, accept, or reject modifications proposed by their counterparties, ensuring that the details of their outward supplies are accurately reflected in their GST returns. All taxpayers, including normal and casual taxpayers, must file GSTR-1A to update sales details if errors were made in GSTR-1. This form is generated after the 15th of each month on the GST Portal. Corrections in GSTR-2 by the buyer will reflect in the seller’s GSTR-1A, and upon acceptance, update GSTR-1 accordingly.

• Suppliers cannot add new details: Only acceptance or rejection of changes is permitted.
• Filing before GSTR-2: GSTR-1A can be filed before GSTR-2 if the conditions are met.
• Differences between GSTR-1A & GSTR-1:
  • GSTR-1 details sales; GSTR-1A modifies sales details.
  • GSTR-1 is filed by the seller; GSTR-1A is based on buyer modifications.