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Introduction
GSTR-1A has been introduced vide Central Goods and Services Tax (Amendment) Rules, 2024 on July 10, 2024 (through Notification No. 12/2024 – Central Tax issued by CBIC vide G.S.R. No. 376(E)).
Prior to the introduction of GSTR-1A, any error in the GSTR-1 could only be amended by the assessee in next month’s GSTR-1. There was no provision to do the necessary amendments in GSTR-1 before filing of GSTR-3B. Thereby, any errors (if any) in the GSTR-1 get carried in GSTR-3B as well leading to incorrect reporting by the assessee to the tax authorities.
Salient Features of FORM GSTR-1A
Effective Date
GSTR-1A will be in effect from 1st August, 2024.
Impact of GSTR-1A on Input Tax Credits
By using GSTR-1A to correct errors in GSTR-1, accuracy can be ensured in computing and claiming eligible input tax credits which shall also help to avoid notices and queries from tax authorities.
It is imperative to note that details provided in GSTR-1 and necessary rectification in the same through GSTR-1A shall promote accurate reporting and may reduce the chances of ITC rejections due to input mismatches.
Re-amendments of Information reported in GSTR-1A not allowed
Amendments in GSTR-1A cannot be amended again in the subsequent month’s GSTR-1. Only the unamended records can be modified in the subsequent period’s GSTR-1.
Understanding of impact of reporting in GSTR-1 & amendments in GSTR-1A on Input Tax Credit
The transactions reported in GSTR-1 are reflected in the recipient’s GSTR-2A and subsequently in GSTR-2B. Based on this, the input tax credit (ITC) is calculated. Changes in GSTR-1 will impact the recipient’s ITC.
Let us look at an example to see how it works-
Due Date for filing GSTR-1A
GSTR-1A must be filed before the 16th of the next month. After it is modified, the data will automatically get updated in GSTR-1.
Impact of cancellation of E-Invoices
E-invoices cannot be edited by taxpayers after they are generated. They can only be canceled within 24 hours. Taxpayers have 30 days from the invoice date to generate the e-invoices, and GSTR-1 for the month must be filed by the 11th of the next month.
If e-invoices are generated and the transaction is later amended in GSTR-1A, proper reconciliation must be ensured so that the data is accurate.
Key Points for the QRMP taxpayers i.e. filling FORM GSTR-1 on Quarterly basis:
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