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GST Compliance

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

ReadyBooks Team

Nov 2025

6 min read

The two returns every GST-registered business files

If you are registered under GST in India, you need to file two key returns: GSTR-1 (details of outward supplies) and GSTR-3B (summary return with tax payment). Understanding the difference is critical to staying compliant.

GSTR-1: Your sales details

GSTR-1 contains invoice-level details of all your outward supplies (sales). It includes:

  • B2B invoices (with buyer GSTIN) — reported invoice-by-invoice
  • B2C invoices (without buyer GSTIN) — reported as consolidated summaries
  • Credit notes and debit notes
  • Export invoices
  • HSN-wise summary of outward supplies

Filing deadline: 11th of the following month (monthly filers) or 13th of the month following the quarter (quarterly filers under QRMP scheme).

GSTR-3B: Your tax summary

GSTR-3B is a self-declared summary return where you report:

  • Total outward supplies and tax liability
  • Input Tax Credit (ITC) claimed
  • Net tax payable (output tax minus ITC)
  • Interest and late fees (if applicable)

Filing deadline: 20th of the following month (varies by state for quarterly filers).

Common mistakes

  • Mismatch between GSTR-1 and GSTR-3B — the tax liability in GSTR-3B should match the totals in GSTR-1. Mismatches trigger notices.
  • Claiming excess ITC — you can only claim ITC that appears in your GSTR-2B (auto-generated from your suppliers' GSTR-1).
  • Late filing — attracts interest at 18% p.a. on the tax amount and a late fee of Rs. 50 per day (Rs. 20 for nil returns).

How ReadyBooks.ai helps

ReadyBooks.ai generates GSTR-1 data automatically from your sales invoices and credit notes. The GST dashboard shows your output tax, input tax, and net payable — matching the GSTR-3B format. You can export data in the format required by the GST portal.

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