India's GST regime requires businesses to file more than one return, but the dilemma regarding GSTR-1, GSTR-2A, and GSTR-3B continues. Most businesses encounter difficulties while reconciling data, availing Input Tax Credit (ITC), or maintaining compliance. In this blog, we analyze the differences between these three returns in the simplest manner possible so that even a first-time taxpayer or small businessman understands and uses it effectively. If you are a businessperson or an accountant who wants to remain compliant, this is for you.

 

What is GSTR-1?

GSTR-1 is a quarterly or monthly return filed by a registered taxpayer to report all outward supplies (sales) of theirs. It provides the following details:

Sales invoices

Credit and debit notes

Exports

Business-to-business (B2B) and certain business-to-consumer (B2C) transactions

This return is significant since the data you report in GSTR-1 is used by your customers to claim their Input Tax Credit through GSTR-2A and GSTR-2B.

 

Key Points

GSTR-1 is submitted every month by the 11th of the next month, or quarterly under the QRMP scheme by the 13th of the next month after the end of the quarter.

The return can be edited before they are submitted, therefore any error in the invoice should be rectified before submission.

It does not include payment of tax; it is for reporting only outward supplies.

 

What is GSTR-2A?

GSTR-2A is an auto-populated read-only statement. It has details of all your inward supplies (purchases) that your suppliers have filed in their GSTR-1, GSTR-5, or GSTR-6 returns. You don't need to file GSTR-2A; it is auto-generated and real-time updated.

It is mostly utilized for reconciliation. Prior to claiming Input Tax Credit in GSTR-3B, you should cross-check your purchase invoices with the data reflected in GSTR-2A to prevent mismatches and ITC loss.

 

Important Points:

GSTR-2A is not filed manually.

It dynamically updates depending on whether your suppliers have filed GSTR-1 or corrected anything.

It assists in cross-verifying purchase invoices and ensuring the claimed ITC is correct.

 

What is GSTR-3B?

GSTR-3B is a summary return which every GST-registered business is required to file either monthly or quarterly. It contains an aggregate summary of:

Total outward supplies (sales)

Inward supplies (purchases)

Tax liability

Input Tax Credit claimed

Final tax payment

This return is crucial because it is where you actually pay and declare GST liabilities. In contrast to GSTR-1, tax payment is a requirement for GSTR-3B.

 

Key Points:

The due date is the 20th of every month for regular taxpayers.

Under the QRMP scheme, it is due on the 22nd or 24th, depending on your state.

GSTR-3B must be filed even if there are no transactions (NIL return).

 

Key Differences Between GSTR-1, GSTR-2A, and GSTR-3B

Understanding how these returns differ is crucial for compliance and ITC accuracy. Here’s a simple comparison:

How These Returns Interact

For smooth GST compliances, all three returns need to be synchronized with one another:

GSTR-1: You submit your sales invoices.

GSTR-2A: Your customers look at these invoices and authenticate them.

GSTR-3B: You report your overall sales, purchases, and claim ITC.

If the purchase information in your records does not reconcile with GSTR-2A or GSTR-2B, the claim of ITC in GSTR-3B can get rejected or result in notices from the GST department.

 

Common Business Mistakes

Most taxpayers are in trouble due to:

Delays in GSTR-1 filing resulting in ITC mismatch for buyers

Failure to reconcile GSTR-2A with purchase books

Claiming more ITC than due in GSTR-3B

Failure to notice differences in invoices and credits

These errors can lead to denial of ITC, penalties, or interest, which makes compliance more demanding for you.

 

Best Practices to Prevent Mistakes

To remain compliant and mistake-free:

Reconcile GSTR-2A with monthly purchase invoices

Submit GSTR-1 and GSTR-3B on time

Make use of automated GST software to minimize manual effort

Take assistance from a Chartered Accountant for routine audit and filing support

 

Why You Should Hire a Chartered Accountant

A CA not only does timely and correct filing of your GST returns but also assists:

Prevent ITC mismatches

Lessen the possibility of receiving GST notices

Lessen penalty risks

Save time and concentrate on business development

Expert CA services can manage complicated filings and leave you stress-free.

 

Conclusion

GSTR-1, GSTR-2A, and GSTR-3B play distinct but interlinked functions in GST return filing. Knowledge of the purpose and right filing of every return guarantees you accurately claim ITC, remain compliant, and avoid fines. In case you are confused or need assistance reconciling or filing your GST returns, our skilled Chartered Accountants are a call away.

 

FAQs – Short Answers to Popular GST Return Questions

Q1. Do I have to file GSTR-2A?

No. GSTR-2A is auto-generated for viewing and reconciliation purposes only.

 

Q2. Can I claim ITC if the invoice is missing in GSTR-2A?

No. ITC can be claimed only if GSTR-1 is filed by the supplier and the invoice is visible in GSTR-2B.

 

Q3. What is the penalty for late filing of GSTR-3B?

?50 per day for normal returns and ?20 per day for NIL returns, together with 18% annual interest on unpaid tax.

 

Q4. How frequently should I reconcile GSTR-2A?

It is advisable to reconcile monthly before you file GSTR-3B.

 

Q5. Can GSTR-1 and GSTR-3B be filed under QRMP?

Yes. If your turnover is not more than ?5 crore, you can file GSTR-1 quarterly and GSTR-3B monthly or quarterly.

Quick Enquiry

Recent Blog