छोटे व्यापारियों के लिए GST गाइड

GSTR-1 vs GSTR-3B: what's the difference?

These are the two returns most small businesses file every month or quarter, and they do different jobs.

GSTR-1 — your sales

GSTR-1 is a statement of your outward supplies (your sales). You report every sales invoice — B2B invoice-wise, and B2C in summary — so the government (and your buyers) can see the tax you've charged. Because your buyers claim their input tax credit from what you file here, GSTR-1 accuracy matters to your customers too.

GSTR-3B — your summary & tax payment

GSTR-3B is a summary return: total sales, total input tax credit you're claiming, and the net GST you actually pay for the period. This is where the money is paid.

When are they due?

• Monthly filers: GSTR-1 by the 11th and GSTR-3B by the 20th of the following month.
• Quarterly (QRMP) filers: GSTR-1 by the 13th after the quarter, and GSTR-3B around the 22nd/24th (depending on your state).

With Billing Babu, both returns are prepared from the invoices you've already recorded, so you review the numbers instead of typing them again. See the FAQ for more.

How to make a GST-compliant invoice

A valid GST tax invoice needs a specific set of details. Missing fields can cost your buyer their input tax credit, so it's worth getting right.

Fields a tax invoice must include

• Your business name, address and GSTIN.
• A unique, sequential invoice number and the invoice date.
• Customer name, address and GSTIN (GSTIN required if they're registered).
• HSN/SAC code for each item or service.
• Description, quantity, unit and taxable value of each line.
• Tax rate and amount — CGST + SGST for a sale within your state, or IGST for an inter-state sale.
• Place of supply (important for deciding CGST/SGST vs IGST).
• Whether tax is on a reverse-charge basis, if applicable.
• Signature or digital signature of the supplier.

Billing Babu fills these fields for you and can send the finished invoice to your customer on WhatsApp. Compare it with Tally or Vyapar.

HSN and SAC codes explained

HSN (Harmonized System of Nomenclature) codes classify goods; SAC (Services Accounting Code) codes classify services. They tell the GST system exactly what you're selling and help apply the correct tax rate.

How many digits do you need?

• Turnover up to ₹5 crore: typically 4-digit HSN on B2B invoices.
• Turnover above ₹5 crore: 6-digit HSN on invoices.

Using the right code matters because the GST rate is tied to the classification. If you sell the same items repeatedly, save their HSN/SAC once and reuse them — Billing Babu remembers your items so you don't re-enter codes each time.

Input tax credit (ITC), simply explained

Input tax credit lets you subtract the GST you paid on your purchases from the GST you collected on your sales — so you only pay tax on the value you added, not the full amount again.

To claim ITC, you generally need:

• A valid tax invoice from your supplier.
• To have actually received the goods or services.
• Your supplier to have reported the invoice and paid the tax, so it appears in your GSTR-2B.
• To have filed your own return.

This is why recording every purchase bill matters: each purchase invoice with GST is potential money back. Billing Babu lets you scan a supplier bill with OCR so purchases are captured quickly and your ITC isn't missed.