GSTR-1 & GSTR-3B Filing: Monthly GST Return Guide for Small Business

Confused about GSTR-1 vs GSTR-3B? Learn what each return covers, due dates, ITC rules, and how to avoid late fees and blocked credits as a small business owner.

Two returns, two purposes

Registered GST taxpayers must typically file two monthly returns (unless on QRMP scheme):

Think of GSTR-1 as what you sold and GSTR-3B as what you owe after adjusting purchases.

Due dates (regular taxpayers)

Late filing attracts ₹50 per day per return (₹20 for nil returns) plus interest on outstanding tax.

Before you file: reconcile your books

  1. Match sales register with GSTR-1 entries — every B2B invoice must carry correct GSTIN
  2. Download GSTR-2B — auto-drafted ITC statement from suppliers' filings
  3. Claim ITC only for invoices appearing in GSTR-2B and paid within 180 days
  4. Reverse ITC on blocked items (motor vehicles for personal use, food, club memberships, etc.)

GSTR-1 essentials

GSTR-3B essentials

Red flags that cause GST notices

AONETAX offers monthly GST return filing, GSTR-2B reconciliation, and annual GSTR-9 support for traders, retailers, and service providers. One fixed fee, expert review before every submission.

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