Table 5 (B2C L) of GSTR-1 - Reporting limit 1 Lakh or 2.5 Lakh? GST portal New Advisory

Rate this post

Advisory on Reporting Supplies to Unregistered Dealers in GSTR-1/GSTR-5

The Government of India, through Notification No. 12/2024 – Central Tax dated July 10th, 2024, has made a significant amendment concerning the reporting of inter-state taxable outward supplies made to unregistered dealers. This change primarily impacts the threshold limit for reporting invoice-wise details, lowering it from ₹2.5 Lakh to ₹1 Lakh. This amendment is set to bring greater transparency and accuracy in the reporting process, ensuring that smaller transactions are also duly accounted for.

Key Highlights of the Notification

1. Reduction in Threshold Limit:

The threshold for reporting invoice-wise details of inter-state taxable outward supplies made to unregistered dealers has been reduced from ₹2.5 Lakh to ₹1 Lakh.
This change will require businesses to report transactions exceeding ₹1 Lakh in value in Table 5 of Form GSTR-1 (for regular taxpayers) and Table 6 of GSTR-5 (for non-resident taxable persons).

2. Applicability:

This new threshold limit is applicable to all inter-state taxable supplies made to unregistered dealers.
Businesses engaging in such transactions need to ensure compliance with this revised threshold.

Reporting Process and Compliance

1. Current Reporting Requirements:

Until the new functionality reflecting this change is fully developed and available on the GST portal, taxpayers are advised to continue with the existing reporting threshold.
Form GSTR-1: Continue reporting invoice-wise details of inter-state taxable outward supplies exceeding ₹2.5 Lakh to unregistered dealers in Table 5.
Form GSTR-5: Similarly, non-resident taxable persons should report such supplies in Table 6 of GSTR-5.

2. Future Implementation:

The GST portal is currently under development to accommodate this change. Once implemented, taxpayers will need to report any inter-state taxable outward supply to unregistered dealers exceeding ₹1 Lakh in the relevant tables of GSTR-1 and GSTR-5.