What is Consequences of not filing GSTR-1?
Nexa Consultancy | Startup & Finance Glossary
Failure to file GSTR-1 by the due date has a cascading effect. It prevents the recipient of the goods/services from claiming Input Tax Credit (ITC) in their GSTR-2B, leading to business disputes. It also prevents you from filing your GSTR-3B for the same period.
Startup Example: A SaaS startup fails to file its GSTR-1 for June. Its enterprise client cannot see the invoice in their GSTR-2B and therefore cannot claim the GST paid as ITC, leading to a blocked working capital for the client and a strained relationship.
Timely filing is a core component of our GST compliance services.