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How to File GSTR-1 for Reverse Charge?

Published in GST Compliance 2 mins read

Filing GSTR-1 for reverse charge transactions involves reporting the outward supplies received from registered suppliers under the reverse charge mechanism. Here's a step-by-step guide:

Step 1: Login to the GST Portal

  1. Access the official GST portal: https://www.gst.gov.in/
  2. Login using your GSTIN and password.

Step 2: Navigate to Returns Filing

  1. Click on the "Services" tab.
  2. Select "Returns" from the dropdown menu.
  3. Choose "GSTR-1" from the list of available returns.

Step 3: Select the Filing Period

  1. Choose the relevant financial year and tax period for which you're filing GSTR-1.

Step 4: Enter Reverse Charge Supplies

  1. In the GSTR-1 form, locate the section for "Outward Supplies" or "Supplies Made".
  2. Select the "Reverse Charge" option.
  3. Enter the details of the supplies received from registered suppliers under reverse charge. This includes:
    • Invoice number and date
    • Supplier's GSTIN
    • Description of goods or services
    • HSN code
    • Rate of GST
    • Value of supply
    • Amount of GST payable

Step 5: Verify and Submit

  1. Carefully review all the details entered in the form.
  2. Click on the "Submit" button to file your GSTR-1.

Example:

Let's say you, as a registered business, received goods worth ₹10,000 from a registered supplier under reverse charge. The GST rate on these goods is 18%. You would enter the following details in GSTR-1:

  • Invoice Number & Date: Enter the invoice details from the supplier.
  • Supplier's GSTIN: Enter the supplier's GSTIN.
  • Description: Enter the description of the goods received.
  • HSN Code: Enter the HSN code for the goods.
  • Rate of GST: Enter 18%.
  • Value of Supply: Enter ₹10,000.
  • Amount of GST Payable: Calculate the GST payable as (18/118) * ₹10,000 = ₹1,525.32.

Key Points to Remember:

  • Reverse charge is applicable only for specific goods and services as specified by the GST Council.
  • You are responsible for paying GST on the supplies received under reverse charge.
  • The GST paid under reverse charge will be reflected in your GSTR-3B return.

Remember to keep all relevant invoices and documents for future reference.

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