With India continuing its push toward a more transparent and digitized tax regime, understanding GST compliance has become more important than ever for businesses and Chartered Accountants alike. At the center of this ecosystem lies GSTR-1 — the return for reporting outward supplies of goods and services.
But the filing isn't one-size-fits-all. Based on your turnover and business category, you can opt for either monthly or quarterly filing—whichever fits best. Knowing the difference and its implications is important for accurate Input Tax Credit (ITC) flow, vendor relationships, and timely compliance.
This blog serves as a guide for CA aspirants, interns, and practicing professionals looking to help clients stay compliant and informed.
What is GSTR-1?
GSTR-1 is filed monthly or quarterly and includes the complete details of all outward supplies made by a GST-registered taxpayer. Essentially, it reports:
- B2B and B2C invoices
- Exports
- Debit and credit notes
- Advances received
- Amendments to previously reported supplies
Why does it matter? Because it directly impacts the ITC eligibility for the buyer. If not filed correctly or timely, it leads to mismatch issues in GSTR-2A/2B, thereby delaying or disallowing ITC.
Who has to file it? Every registered person under GST (except composition scheme dealers, TDS deductors, and a few exempted categories) must file GSTR-1.
Filing Frequencies Explained: Monthly vs Quarterly
Who Needs to File Monthly?
Any business whose aggregate turnover in the preceding financial year exceeds ₹5 crore is mandatorily required to file GSTR-1 on a monthly basis.
Even if you're below that threshold, you can opt for monthly filing voluntarily for better compliance tracking.
Pros:
- Faster ITC reflection: Your clients/customers can claim Input Tax Credit sooner, which builds trust and smoother vendor relationships.
- Real-time compliance: Frequent filing means you spot errors quickly and reduce year-end surprises.
- Better cash flow visibility: Helps businesses that need tighter financial control.
Cons:
- More administrative work: 12 filings a year can feel like a grind, especially for smaller firms.
- Higher chances of late fees: Missed due dates = automatic penalties.
Due Date: 11th of the following month.
Quarterly GSTR-1 Filing: For the Easy Riders
Businesses with turnover up to ₹5 crore in the previous financial year can choose the QRMP Scheme—Quarterly Return Filing, Monthly Payment. With this, GSTR-1 is filed every quarter, while tax is paid monthly using PMT-06.
Pros:
- Reduced compliance load: Just 4 filings a year, ideal for MSMEs and smaller outfits.
- Cost-efficient: Less time, fewer resources spent on repetitive monthly tasks.
- Smoother operations for CAs: If you handle multiple small clients, QRMP makes your calendar a lot more breathable.
Cons:
- Delayed ITC for buyers: Since data gets uploaded less frequently, your B2B customers might see slower ITC availability.
- Prone to forgetfulness: Filing every 3 months increases chances of missed deadlines if reminders aren’t set.
Due Date: 13th of the month after the quarter ends.
Key Watch-Outs for Both Frequencies:
| Criteria | Monthly Filing | Quarterly Filing (QRMP) |
|---|---|---|
| Eligibility | > ₹5 crore turnover | ≤ ₹5 crore turnover |
| Due Date | 11th of next month | 13th of month after quarter |
| Use of IFF | Not required | Optional (first 2 months) |
| ITC Reflection | Fast and consistent | May delay ITC for buyers |
| Compliance Load | High | Low |
| Recommended For | Large businesses, B2B sellers) | MSMEs, retail, small traders |
Whether you choose monthly or quarterly, the key is to stay consistent, file accurately, and never miss deadlines. Especially if you're a CA juggling multiple clients, these decisions can influence everything from cash flow timing to client satisfaction.
Compliance and Penalties
Non-compliance can be costly.
- Late fees: ₹50 per day—₹25 each for CGST and SGST
- Interest: 18% per annum on any pending tax amount
- ITC issues: Non-filing delays ITC for recipients
Regular defaults can also restrict the ability to generate e-way bills and e-invoices, which further disrupts business operations.
Choosing the Right Filing Frequency: What CAs Recommend
As trusted advisors, Chartered Accountants are in the best position to:
- Analyze the business type and turnover
- Evaluate vendor needs for ITC
- Suggest IFF usage for strategic balance
- Ensure seamless reconciliation with GSTR-3B and GSTR-2A/2B
A few questions to guide the decision:
- Are the buyers mostly B2B?
- Is cash flow heavily dependent on timely ITC?
- Can the business manage monthly compliance?
How to Simplify GSTR-1 Filing
Whether monthly or quarterly, these practices help:
- Use templates or automated tools for invoice uploading
- Reconcile with books monthly to avoid year-end chaos
- Stay updated on GSTN portal changes
- Cross-check HSN/SAC codes and tax rates
The Role of Tech in Managing GSTR-1 Efficiently
Automation is not just a luxury anymore—it’s a necessity.
- Avoid manual data entry errors
- Get real-time mismatch alerts
- Generate audit trails
- Scale compliance without increasing headcount
Modern GST compliance tools are built with reconciliation and reporting in mind. They simplify bulk data import (from Excel, PDFs, scanned PDFs), reduce time-to-filing, and increase accuracy.
What Suvit Offers (And What’s Coming Soon)
While Suvit currently doesn’t offer GSTR-1 filing, it automates the most time-consuming part of the process: GST reconciliation. Users can:
- Compare GSTR-2A vs 2B instantly
- Calculate Input Tax Credit (ITC) automatically
- Upload Excel, PDF, and scanned PDFs seamlessly
Coming soon: GSTR filing functionality to make your GST compliance journey even smoother. Till then take a free trial to see other features of Suvit!
Understanding the differences between monthly and quarterly GSTR-1 filing isn’t just compliance jargon—it’s a strategic advantage. Whether you're a startup, a mid-sized business, or a practicing CA, choosing the right frequency can improve cash flow, reduce penalties, and enhance vendor relationships.
With the right tech stack, especially tools like Suvit that automate reconciliation, staying compliant doesn’t have to be a headache. As GST evolves, staying informed is half the battle—being prepared is the other half.
TL;DR
GSTR-1 is a critical GST return form that captures details of outward supplies. Depending on your business turnover, you can opt for monthly or quarterly filing. This blog breaks down the difference between the two, their respective benefits, due dates, and how Chartered Accountants (CAs) can guide businesses to choose the right filing strategy. Bonus: A look into how automation can make the entire process hassle-free.
FAQs
1. Can a business switch between monthly and quarterly filing?
Yes, but only at the beginning of a financial year or quarter through the GST portal.
2. Is IFF mandatory for quarterly filers?
No. It's optional, but highly recommended if buyers need timely ITC.
3. Can I file GSTR-1 after the due date?
Yes, but with applicable late fees and interest.
4. How does GSTR-1 affect my GSTR-3B?
Data from GSTR-1 is used to auto-populate GSTR-3B, making accurate reporting critical.
5. Does Suvit offer GSTR filing currently?
No. Suvit offers GST reconciliation automation for GSTR-2A, 2B, and ITC calculations, but GSTR filing is coming soon.
6. Is monthly filing better for B2B businesses?
Yes, because it ensures your buyers get ITC on time, strengthening vendor relationships.
Also Read:
1. Avoid GST Penalties: Master GSTR 1 Reconciliation with This Step-by-Step Guide
2. Guide to Selecting the Best GST Reconciliation Software for Indian Businesses
3. GST on Exports: Guide to Bonds & LUTs for Tax-Free Shipments
