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GST Compliance

GSTR-1 vs GSTR-3B: What every shop owner should know

A plain-English breakdown of the two most common GST returns — what goes in each, when to file, and how Biliqo auto-generates both.

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GST Compliance6 min read·

Why this matters

If you are a registered Indian business, two filings will follow you every month: GSTR-1 and GSTR-3B. Confuse them and you risk late-fee notices, blocked input tax credit, and unhappy buyers. Get them right and the GST officer never has a reason to call.

GSTR-1 in one line

GSTR-1 is the outward-supply return. It declares every B2B and B2C invoice you raised in the period — invoice number, date, GSTIN of buyer, taxable value, CGST/SGST/IGST.

  • Filed monthly (or quarterly under QRMP) by the 11th of the next month.
  • Drives the GSTR-2A / 2B of your buyer — if you don't file it, your buyer cannot claim input tax credit on your invoices.
  • Mistakes here annoy your customers. They will call.

GSTR-3B in one line

GSTR-3B is the summary return + tax payment. You declare the totals, claim eligible input tax credit, and pay the net cash liability.

  • Filed monthly by the 20th (staggered 22nd / 24th by state).
  • This is the return that actually moves money to the government.
  • Late filing = ₹50/day late fee + interest on tax due.

A worked example

A retailer in Bengaluru raises ₹5,00,000 of taxable sales in March, all intra-state at 18% GST.

  • GSTR-1: lists each invoice — totals show ₹5,00,000 taxable, ₹45,000 CGST, ₹45,000 SGST.
  • GSTR-3B: summary shows the same outputs, plus ₹60,000 input tax credit on purchases. Net cash payable = ₹30,000.

If the retailer skips GSTR-1, every B2B buyer's GSTR-2B is short — they will not be able to claim that ₹90,000 of credit. Expect angry phone calls within a week.

Where Biliqo helps

  • Every invoice you raise on Biliqo already carries the right HSN/SAC, place-of-supply and tax split.
  • The Reports module exports a CA-grade GSTR-1 and GSTR-3B in JSON / CSV compatible with the GSTN offline tool.
  • Reverse charge, exports with/without payment, and credit notes are all categorised correctly — no manual reclassification.
  • A pre-filing checklist warns you about missing GSTINs, invalid HSNs, or invoices outside the period.

Three habits that prevent 90% of GST headaches

  • Reconcile monthly, not yearly. Pull GSTR-2B every month and match against your purchases.
  • Stop waiting for the 20th. Aim to file GSTR-1 by the 5th and GSTR-3B by the 15th.
  • Lock the period. Once filed, Biliqo can soft-lock the period so nobody back-dates an invoice.

TL;DR

GSTR-1 = "what I sold". GSTR-3B = "what I owe". File both, file early, reconcile monthly. Biliqo does the maths so you can focus on the business.

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