GSTR-1 vs GSTR-3B: Key Differences Explained
Every GST-registered business in India files both GSTR-1 and GSTR-3B — but they serve different purposes. Here's the plain-English breakdown, plus how ECHO prepares both automatically from your invoices.
Quick comparison
| Aspect | GSTR-1 | GSTR-3B |
|---|---|---|
| Purpose | Outward supplies (sales) return | Summary of sales, purchases & tax paid |
| Detail level | Invoice-wise line detail | Consolidated totals only |
| ITC claim | No | Yes — input tax credit is claimed here |
| Tax payment | No cash payment | Net GST liability is paid |
| Due date (monthly) | 11th of next month | 20th of next month |
| Due date (QRMP) | 13th of month after quarter | 22nd/24th of month after quarter |
What is GSTR-1?
GSTR-1 is the outward supplies return. You report every B2B invoice at line level (invoice number, GSTIN of buyer, taxable value, CGST/SGST/IGST). B2C sales are reported in aggregate per state and tax rate. Credit notes, debit notes, exports and advances also flow into GSTR-1.
Because GSTR-1 is invoice-wise, it's the return your customers rely on to claim input tax credit. Missing or wrong entries in your GSTR-1 directly hit your customer's GSTR-2B — which is why reconciliation matters.
What is GSTR-3B?
GSTR-3B is the monthly summary. You declare total outward supplies, eligible input tax credit (ITC), reverse charge liability, and pay net GST in cash. There's no invoice detail — just totals per tax head.
GSTR-3B is where money actually moves. The liability computed here becomes payable on the due date. Late filing attracts interest at 18% p.a. plus a per-day late fee.
How they relate
GSTR-1 feeds the government's view of your sales. GSTR-3B feeds the government's view of your net tax liability. The two must reconcile — a mismatch triggers notices. In practice:
- Outward taxable value in GSTR-3B should equal the sum of taxable value in GSTR-1.
- ITC claimed in GSTR-3B should tie to GSTR-2B (auto-drafted from vendors' GSTR-1).
- Amendments in a later GSTR-1 automatically adjust future GSTR-3B liabilities.
Common mistakes
- Reporting B2B as B2C — your customer loses ITC.
- Filing GSTR-3B without checking GSTR-2B — over-claim of ITC leads to reversal + interest.
- Missing the 11th deadline — GSTR-1 late filing blocks the buyer's ITC claim.
- Ignoring reverse-charge entries — must be declared and paid in GSTR-3B.
How ECHO prepares both
ECHO auto-generates GSTR-1 line detail and GSTR-3B summaries from your invoices, credit notes and expense entries. The reconciliation engine flags mismatches between your books, GSTR-1 and GSTR-2B before you file. Filing-ready JSON exports are produced in one click.
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FAQs
Do I need to file both every month?
Yes — unless you're under the QRMP scheme (turnover ≤ ₹5 cr), in which case GSTR-1 and GSTR-3B are filed quarterly with monthly tax payments via PMT-06.
Can I revise a filed GSTR-1 or GSTR-3B?
Neither can be revised directly. Corrections are made through amendment tables in the next period's return.
Which is filed first — GSTR-1 or GSTR-3B?
GSTR-1 (11th) is filed before GSTR-3B (20th) so that your GSTR-3B outward supplies auto-populate from GSTR-1.