GSTR 1 and 5: New Advisory on Reporting Inter-state Supplies to Unregistered Traders

An advisory has been issued by the Government of India for the recent amendment under Notification No. 12/2024 Central Tax, dated 10th July 2024, that lessens the threshold limit for the reporting of inter-state taxable outward supplies to unregistered dealers. 

From Rs 2.5 lakh to Rs 1 lakh the limit to report the invoice-wise information of these supplies was lessened, impacting how businesses file their GSTR-1 and GSTR-5 returns. 

As per the notification, the same reduction in the threshold would need the assesses to furnish the detailed invoice-wise data for all inter-state supplies to unregistered dealers that surpass Rs 1 lakh in value. The same information should be reported in Table 5 of Form GSTR-1 and Table 6 of GSTR-5.

The same advisory states that the same revisions are being executed at present in the Goods and Services Tax ( GST ) portal and will be available for taxpayers shortly.

In the interim, taxpayers need to continue reporting inter-state taxable outward supplies to unregistered dealers that surpass the previous threshold of ₹2.5 lakh. These must be filed in Table 5 of GSTR-1 for regular taxpayers and Table 6 of GSTR-5 for non-resident taxable persons.

After the operationality gets updated to the GST portal, would facilitate the process of reporting and align it with the amended threshold needs. The businesses are suggested to stay updated with the additional announcements on the operationalization of the same revision and the assesses are motivated to track the updates on the GST portal for the additional guidelines.