GSTR-1 vs GSTR-3B: What MSMEs Need to File Monthly?
We’ll explore the purpose, due dates, and relevance of GSTR-1 and GSTR-3B — and highlight why accurate filing is vital for your business’s financial stability.
One of the most common issues faced by small businesses in India is understanding the differences between GSTR-1 and GSTR-3B. Incorrect filings often result in penalties, delayed refunds, or blocked Input Tax Credit (ITC).
This blog is designed to make GST compliance easier for you. We’ll walk you through the purpose, due dates, and importance of GSTR-1 and GSTR-3B — and explain why accurate filing of both is crucial for your business’s success.
With expert support from BizBandhu, you can ensure accurate and timely GST returns — every month, without fail.
What is GSTR-1?
GSTR-1 is a GST return that every regular registered taxpayer in India must file to report the details of all outward supplies
This return allows the government to monitor sales activity and enables buyers to claim Input Tax Credit (ITC) based on the seller’s reported data.
Key Points:
- GSTR-1 captures detailed invoice-wise information of all B2B and B2C sales.
- It also includes debit and credit notes issued during the period.
- Additionally, the data enables your buyers to claim Input Tax Credit (ITC), as the details automatically populate their GSTR-2A/2B.
Who Must Submit GSTR-1?
Form GSTR-1 is a monthly return to be filed by normal and casual taxpayers for reporting outward supplies of goods or services. It captures the invoice-wise details of all sales transactions.
What is GSTR-3B?
GSTR-3B is a crucial self-declared monthly summary return that registered taxpayers in India must file under the Goods and Services Tax (GST) system. It provides a summary of outward supplies (sales), Input Tax Credit (ITC) claimed, and the resulting net tax liability for a particular tax period.
Key Points:
- Does not require invoice-level details.
- Used for actual GST payment every month.
- Must be filed monthly, even if GSTR-1 is filed quarterly.
Who Must File GSTR-3B?
All regular taxpayers registered under the GST system in India must file GSTR-3B as a self-declared summary return.
Monthly vs Quarterly Filing – What’s Applicable?
| Annual Turnover | GSTR-1 | GSTR-3B |
| Up to ₹5 Crore | Quarterly (with IFF option) | Monthly |
| Above ₹5 Crore | Monthly | Monthly |
–Some taxpayers file GSTR-1 quarterly. he must continue filing GSTR-3B every month as per GST regulations.”
Why It’s Crucial to File Both
- Ensures smooth Input Tax Credit for your buyers.
- Avoids penalties and interest.
- Keeps your GSTIN active and compliant.
- Helps in easy GST reconciliation and audits.
Common Mistakes MSMEs Make
- Filing GSTR-1 but forgetting GSTR-3B.
- Incorrect invoice data or mismatched entries.
- Delayed filings, leading to late fees and blocked ITC.
- Not reconciling GSTR returns with books and GSTR-2A/2B.
Filing Timelines (Monthly)
| Return | Due Date |
| GSTR-1 | 11th of next month (monthly) or 13th (quarterly via IFF) |
| GSTR-3B | 20th, 22nd or 24th of next month (based on state) |
Pro Tips for MSME
- Use cloud-based accounting software for auto-generated returns.
- Reconcile sales & purchase data before filing.
- File on time to avoid ₹50–₹100/day late fees.
- Get expert help for error-free compliance.
How Bizbandhu Can Help
At BizBandhu, we help MSMEs:
- File GSTR-1 and GSTR-3B on time
- Avoid mismatch issues and notices
- Get real-time GST compliance tracking
- Handle all GST queries with expert support
Conclusion
–GSTR-1 reports your outward sales.
-Businesses report their tax dues and pay GST using GSTR-3B.
Delays or mistakes can result in penalties, blocked input tax credit (ITC), and legal complications.
Need expert help?
Visit: www.bizbandhu.com
Email: info@bizbandhu.com | Call: +91 73832 52588
