What Is GSTR-1?
GSTR-1 is the monthly or quarterly return that every registered GST taxpayer must file to report their outward supplies — in simpler terms, all sales and revenue transactions for the period. For fashion businesses, this includes every invoice you issue, whether it is a B2B sale to a retailer, a B2C sale at your own store, or an e-commerce order shipped across the country.
GSTR-1 feeds into the GST ecosystem by populating your buyers' GSTR-2A and GSTR-2B, which they use to claim Input Tax Credit. Filing GSTR-1 accurately and on time is therefore critical — not just for your own compliance, but for your buyers' ability to claim ITC on their purchases from you.
Due Dates for GSTR-1
The filing frequency and due dates depend on your turnover:
- Monthly filing: Businesses with annual turnover exceeding ₹5 Crore must file GSTR-1 by the 11th of the following month. For example, January 2026 sales must be filed by 11th February 2026.
- Quarterly filing (QRMP scheme): Businesses with turnover up to ₹5 Crore can opt for the Quarterly Return Monthly Payment scheme. GSTR-1 is filed quarterly by the 13th of the month following the quarter. However, you must still use the Invoice Furnishing Facility (IFF) to report B2B invoices in the first two months of each quarter.
Late filing attracts a penalty of ₹50 per day (₹25 CGST + ₹25 SGST) for regular returns, subject to a maximum cap. For nil returns, the penalty is ₹20 per day. Beyond penalties, late filing prevents your buyers from claiming ITC, which can damage business relationships.
B2B vs B2C Invoice Reporting
GSTR-1 categorises your sales into several sections. The two most important for fashion businesses are:
B2B Invoices (Table 4)
Every invoice issued to a registered GST buyer must be reported individually with full details:
- Buyer's GSTIN
- Invoice number and date
- Invoice value, taxable value, and tax amounts (CGST, SGST, or IGST)
- HSN code, place of supply, and whether reverse charge applies
For fashion brands that supply to multi-brand retailers, department stores, or e-commerce platforms, B2B invoices often constitute a significant portion of revenue. Each invoice must be reported separately.
B2C Sales
B2C sales are reported differently based on invoice value and whether the sale is intra-state or inter-state:
- B2C Large (Table 5): Inter-state B2C invoices with invoice value exceeding ₹2.5 lakhs must be reported individually.
- B2C Small (Table 7): All other B2C sales can be reported in consolidated, state-wise summaries. This includes your retail store sales, D2C website orders, and marketplace orders below the threshold.
Step-by-Step Filing Process
Step 1: Gather Your Sales Data
Compile all invoices issued during the period. For a typical fashion brand, this includes wholesale invoices to retailers, e-commerce marketplace invoices, D2C website orders, own-store retail bills, and any credit or debit notes issued.
Step 2: Classify and Organise
Separate your invoices into B2B (with buyer GSTIN), B2C Large (inter-state above ₹2.5 lakh), B2C Small (everything else), credit notes, debit notes, and advance receipts if any.
Step 3: Log In and Navigate
Log in to the GST portal (gst.gov.in) with your credentials. Navigate to Returns > GSTR-1 and select the filing period.
Step 4: Upload Invoice Data
You can enter data manually, upload via the offline tool (Excel/CSV), or use GST Suvidha Providers (GSPs) and API-based ERP integrations. For fashion brands processing hundreds of invoices monthly, manual entry is impractical — ERP integration is essential.
Step 5: Review and Submit
Review all sections, verify totals, check for mismatches, and submit. Once submitted, you must file the return using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).
Common Mistakes in GSTR-1 Filing
- Wrong GSTIN: Entering an incorrect buyer GSTIN means the buyer cannot claim ITC. Always validate GSTINs before invoicing.
- Incorrect place of supply: For e-commerce shipments, the place of supply is the delivery address, not the marketplace's registered address.
- Missing credit notes: Returns and exchanges must be reported as credit notes. Failing to report them inflates your tax liability.
- HSN code errors: Using incorrect HSN codes can lead to rate mismatches and scrutiny during audits.
- Invoice number format issues: Invoice numbers must be sequential and unique within a financial year. Gaps or duplicates trigger red flags.
How LabelERP Automates GSTR-1
With a fashion-focused ERP like LabelERP, GSTR-1 preparation becomes largely automated. The system classifies every sale correctly based on buyer registration, calculates place of supply from delivery addresses, generates compliant invoices with proper HSN codes, tracks credit and debit notes against original invoices, and produces a ready-to-upload GSTR-1 file at month-end. Instead of spending days compiling data, your finance team can review and file GSTR-1 in under an hour.