Simple Guide to Filing GSTR‑1 Online in 2025 for Traders & SMEs

🔹 Introduction

If you are running a business in India, filing GSTR‑1 is one of the most important GST compliances you cannot ignore. Whether you are a small trader, manufacturer, or SME, GSTR‑1 ensures your sales data is correctly reported to the GST system. Errors or delays can lead to penalties, notices, or blocked Input Tax Credit (ITC) for your buyers.

In this guide, we’ll cover: -

·       What is GSTR‑1

·       who should file it

·       Due dates (monthly & quarterly)

·       Step‑by‑step process to file GSTR‑1 online

·       Common mistakes to avoid

·       Penalties for late filing

·       FAQs for easy understanding

(References: Section 37 of CGST Act, 2017 & Rule 59 of CGST Rules, 2017)

🔹 What is GSTR‑1?

GSTR‑1 is a monthly/quarterly return that contains details of all outward supplies (sales) made by a registered taxpayer.

·       It includes B2B, B2C, exports, and exempt supplies etc.

·    Once you file GSTR‑1, the details flow automatically to the buyer’s GSTR‑2B, enabling ITC.

👉 Simply put, GSTR‑1 = Your sales report to GST Department.

Legal Reference: Section 37(1) of CGST Act – Every registered person (except composition taxpayers, ISD, TDS/TCS deductors) shall furnish details of outward supplies in GSTR-1.

🔹 Who Should File GSTR‑1?

·       All regular taxpayers registered under GST.

·       Casual taxable persons.

·       SEZ units and developers.

·       Exporters.

❌ Exempted: Composition scheme taxpayers (they file CMP‑08 instead).

🔹 GSTR‑1 Due Dates in 2025

⚠️ Missing the due date results in late fee + interest (Sec. 47).

🔹 Step‑by‑Step Process to File GSTR‑1 Online

Step 1: Login to GST Portal.
Step 2: Go to Returns Dashboard → Select period.
Step 3: Click Prepare Online under GSTR‑1.
Step 4: Enter details:

·       B2B Invoices (GSTIN of buyers, taxable value, tax rate)

·       B2C Large (value > ₹2.5 lakh interstate)

·       B2C Small (consolidated)

·       Exports (with/without payment of tax)

·       Credit/Debit Notes

Step 5: Save, Preview & Submit.
Step 6: File using DSC/EVC.
Step 7: ARN generated → Acknowledgement of filing.

🔹 Common Mistakes in GSTR‑1 Filing

·       Wrong GSTIN entry for buyers → Buyer loses ITC.

·       Mismatch between GSTR‑1 vs GSTR‑3B.

·       Missing export invoices.

·       Not reporting credit/debit notes.

·       Filing late → attracts penalties.

🔹 Penalties for Late Filing (Sec. 47)

·       Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST).

·       Nil Return Late Fee: ₹20 per day (₹10 CGST + ₹10 SGST).

·       Max Cap: ₹5,000 per return.

·       Interest: 18% p.a. on tax liability (if any).

👉 Delay also blocks your buyer’s ITC claim → impacts business relations.

🔹 FAQs on GSTR‑1

Q1. Can I revise GSTR‑1?
No direct revision option. Corrections can be made in the next return or amended GSTR-1 can be filed.

Q2. What if I don’t file GSTR‑1?
You cannot file GSTR‑3B until GSTR‑1 is filed. Notices may be issued.

Q3. Can I file NIL GSTR‑1?
Yes, if no outward supplies in a period → file NIL GSTR‑1.

Q4. What is IFF in QRMP scheme?
Invoice Furnishing Facility (IFF) lets quarterly filers upload monthly B2B invoices.

🔹 Conclusion

Filing GSTR‑1 accurately and on time is crucial for compliance, avoiding penalties, and ensuring your buyers can claim ITC smoothly. With the right process and checklist, SMEs and traders can file hassle‑free.