Form GSTR-1A: A Comprehensive Legal Overview

Form GSTR-1

Form GSTR-1 is a statutory requirement under the Goods and Services Tax (GST) regime in India, necessitating monthly or quarterly returns from every registered GST taxpayer. This form captures detailed information regarding all outward supplies, essentially encompassing sales. Compliance with the filing of GSTR-1 is obligatory for every registered entity, regardless of the occurrence of transactions within the period. In instances where no sales transpire during a particular month or quarter, taxpayers must still submit a 'Nil' GSTR-1.

Introduction of Form GSTR-1A

Pursuant to the recommendations made during the 53rd GST Council meeting, an optional facility under Form GSTR-1A has been proposed. This new provision allows taxpayers the flexibility to add or amend details submitted in Form GSTR-1 for a specific tax period before filing their GSTR-3B for the corresponding tax period. It is noteworthy that the utilization of Form GSTR-1A is entirely optional, and there is no compulsion to file this form in the absence of any amendments or additions.

The GST Network has introduced APIs for Form GSTR-1A, indicating its imminent reintroduction and implementation on the GST portal.

Amendments to the Central Goods and Services Tax Rules, 2017

The Central Government has effected amendments to the Central Goods and Services Tax Rules, 2017, through Notification No. 12/2024-Central Tax, dated 10.07.2024. These amendments incorporate references to Form GSTR-1A across relevant rules and introduce a new form for GSTR-1A.

Key Amendments Pertaining to Form GSTR-1A

1. Rule 21(f): This rule stipulates that a person's GST registration is liable to be canceled if the outward supplies furnished in Form GSTR-1, as amended in Form GSTR-1A, exceed the supplies declared in the valid return filed under Section 39 for the corresponding tax periods.
2. Rule 21A: The procedure for cancellation of the registration certificate now includes provisions under Rule 21A(2A)(a) for suspension of registration if significant discrepancies are found between the returns furnished under Section 39 and the details of outward supplies furnished in Form GSTR-1 and amended in Form GSTR-1A.
3. Rule 36: The amended Rule 36(4)(a) mandates that input tax credit (ITC) cannot be availed unless the corresponding details are furnished by the supplier in Form GSTR-1, as amended in Form GSTR-1A, or through the invoice furnishing facility.
4. Rule 17A: This rule addresses the reversal and re-availment of ITC. It specifies that if the supplier fails to file the return in Form GSTR-3B corresponding to the statement of outward supplies by September 30 following the end of the financial year, the ITC availed must be reversed by November 30 of the same year.
5. Rule 40: This rule outlines the conditions for claiming ITC in special circumstances, verifying details furnished by the supplier in Form GSTR-1 and Form GSTR-1A.
6. Rule 48(3): This rule requires that the serial number of invoices issued during a tax period be furnished electronically through Form GSTR-1 or Form GSTR-1A.
7. Rule 59: Provisions under this rule allow taxpayers to amend or add details of outward supplies in Form GSTR-1A before filing the return in Form GSTR-3B. New sub-rule 59(4A) specifies the types of details that may be included in Form GSTR-1A.
8. Rule 60: Amended provisions ensure that details of outward supplies furnished in Form GSTR-1 and Form GSTR-1A are made available to the concerned recipients electronically.
9. Rule 78: This rule mandates the matching of supply details furnished by e-commerce operators in Form GSTR-8 with those declared by the supplier in Form GSTR-1 and Form GSTR-1A.
10. Rule 88C: This rule provides for intimation to the registered person if the tax payable as per Form GSTR-1 and amended in Form GSTR-1A exceeds the tax payable as per the return in Form GSTR-3B.
11. Rule 96: This rule addresses the refund of integrated tax paid on exports. It specifies that any mismatch between export data in the shipping bill and Form GSTR-1 or Form GSTR-1A must be rectified for the refund application to be processed.
12. Rule 163(1): This rule deals with consent-based sharing of information, ensuring that details in Form GSTR-1 and Form GSTR-1A can be shared with the requesting system upon obtaining the registered person's consent.

Contentions of Form GSTR-1A

The newly introduced Form GSTR-1A encompasses the following details:

• Taxable outward supplies to registered persons (including UIN-holders).
• Taxable inter-State supplies to unregistered persons with invoice values exceeding ?1 lakh.
• Zero-rated supplies and deemed exports.
• Net taxable supplies to unregistered persons.
• Nil-rated, exempted, and non-GST outward supplies.
• Amendments to taxable outward supply details for the current tax periods.
• Amendments to supplies to unregistered persons for the current tax periods.
• Consolidated statements of advances received and adjustments.
• HSN-wise summary of outward supplies.
• Documents issued during the tax period.
• Supplies made through e-commerce operators liable for tax collection under Section 52 or tax payment under Section 9(5).
• Amendments to details of supplies through e-commerce operators under Section 9(5).

The incorporation of Form GSTR-1A within the GST framework aims to enhance the accuracy and compliance of outward supply declarations, providing a streamlined process for amendments and additions prior to the final return submission.