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Need to know about GSTR1, GSTR 2, and GSTR3B?

Need to know about GSTR1, GSTR 2, and GSTR3B?

If you own a business and you are required to follow all GST requirements, it is important for everyone to file GST returns from time to time. If you are new to the world of GST, you need to know about the different types of GST reports. In this blog, we will try to explain to you everything about GSTR1, GSTR2, and GSTR3B.

These three GST reports are needed as per the type of business you are pursuing. Getting adequate details about these filing will help you in reducing the struggles of filing if you are a beginner.

GST returns are categorized into three different categories that include GSTR-1, 2, 3,4...11. Some of these returns are also further broken down into different categories. Let’s try to know about all these types of GST returns.

GSTR 1 or Sales Report

This tax return must be filed by all registered taxable suppliers. It consists of complete details about sales of total taxable goods and services. The return is filed on a monthly or quarterly basis. If your business turnover is more than 1.5 crores, you need to file GSTR-1 on a monthly basis, or else, you can file it quarterly.

Who needs to file GSTR 1? All dealers who are registered need to file GSTR 1. It is considered mandatory, irrespective of the volume of sales and transactions in a particular month. This means, if a dealer does not receive any sales in a particular month, he/she still has to file GSTR 1. But, the entities and individuals are exempted from the report.

1)If your business receives only invoices for the services that are accessed by other branches, you don’t need to file GSTR 1, as it will be considered as an input service distributor as per the GST norms.

2)People who have registered their business as per the composition scheme, need to file for the report.

3)The suppliers of the retrieval services, database access, and online information can also file GSTR 1.

GSTR 2 or the Purchase Report

Just like the GSTR 1 dealt with the outward supplies, the GSTR 2 deals with the inward purchase of goods, services, or both. GSTR 2 is like a monthly inward supply report, which also includes reverse charge transactions. It is also used for the buyer-seller reconciliation or the invoice matching by the government.

It is important for all registered taxpayers to file GSTR-2 on a monthly basis. But, businesses with an annual turnover below 1.5 crores need to pay the tax quarterly. The best part about GSTR 2 is that it is auto-populated on the details of the GSTR-1. Thus, you don’t need to invest too much time in filing for GSTR 2. You should note that if you don’t file for GSTR-2, you will not be able to proceed towards the filing of GSTR-3.

Who needs to file GSTR 2?

1)The GSTR 2 is applicable to almost all registered persons, except the non-residential taxable person, e-Commerce operator, and input distributor.

2)If you are involved in a business of import of goods and service, you will definitely need to file GSTR 2.

The process of GSTR 2 filing is quite easy, and you can easily complete all formalities by using the common portal.

GSTR 3B or Tax Summary Report

The GSTR 3B is a type of non-revisable monthly filing by all registered suppliers. It is essential for all GSTIN taxpayers to possess GSTR-3B. This basically means that if you have multiple GSTIN, you must file multiple GSTR 3B. All taxable people must file this tax return every month. You can even file Nil returns every month if you don’t make any transaction in a particular month. If you don’t pay the GSTR 3B, you may be penalized, and you will have to pay a penalty of Rs. 50 per day.

All non-resident taxpayers, suppliers under the composition scheme, all input service distributors, and online information suppliers don’t need to pay GSTR 3B.

Who needs to file GSTR 3B? GSTR 3B is for all taxpayers who are registered under the GST regime. Even if your monthly transactions are nil, you need to file GSTR 3B on a regular basis.


If you are looking for fast and easy filing of tax returns, you can also look for GST accounting software.

We hope this information provided you with adequate information about GSTR1, GSTR2, and GSTR 3B. We hope all this information will help you in making the right GST filing as per your business needs. Non-compliance with GST filing norms can harm your business in the long term. So, follow the information mentioned above and look for the type of filing your business falls into. We will be more than happy to guide you about filing the GST returns.

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