What is difference between GSTR1 and 3B?

If you're a business owner in India who is required to file GST returns, you've likely come across the terms GSTR1 and GSTR3B. These are two important GST returns that businesses must file to comply with the GST law. While both returns serve the purpose of reporting taxable transactions, there are some key differences between GSTR1 and GSTR3B.

GSTR1 is a monthly or quarterly return that must be filed by registered taxpayers who have outward supplies (sales) during the month/quarter. In simple terms, it's a summary of all sales transactions that a business has made during a particular period. GSTR1 needs to be filed by the 11th day of the following month for monthly filers and by the 13th day of the following month for quarterly filers.

On the other hand, GSTR3B is a monthly return that must be filed by all registered taxpayers, regardless of whether they have any outward supplies (sales) or inward supplies (purchases) during the month. In other words, it's a summary of all transactions, both sales and purchases, that a business has made during a particular month. GSTR3B needs to be filed by the 20th day of the following month.

Another key difference between GSTR1 and GSTR3B is that GSTR1 is used for reporting outward supplies (sales) only, while GSTR3B is used for reporting both outward supplies (sales) and inward supplies (purchases). GSTR1 provides details of all sales made to registered and unregistered persons, exports, and supplies made to SEZ units and developers. GSTR3B, on the other hand, provides details of total sales, purchases, input tax credit (ITC) claimed, and the amount of tax payable.

In summary, while both GSTR1 and GSTR3B are important GST returns that businesses must file to comply with GST laws in India, the key difference lies in the fact that GSTR1 is used for reporting outward supplies (sales) only, while GSTR3B is used for reporting both outward supplies (sales) and inward supplies (purchases). Understanding these differences can help businesses stay compliant and avoid any penalties for non-compliance.