Which return does a cracker shop file first after Diwali?

GSTR-1 comes first, due the 11th of the following month for monthly filers, with invoice-wise detail of the season’s sales. GSTR-3B follows by the 20th with the summary and the actual tax payment.

How are counter sales shown in GSTR-1?

Cash counter sales to unregistered customers are B2C supplies, reported as consolidated rate-wise and state-wise totals rather than bill by bill. Sales to buyers who gave a GSTIN must be reported individually as B2B.

What HSN code goes in the GSTR-1 HSN summary for crackers?

Fireworks fall under HSN 3604 at 18% GST. Businesses with turnover up to ₹5 crore report 4-digit codes, and above ₹5 crore, 6-digit codes, along with quantity, taxable value and tax for the period.

Where do breakage credit notes appear in GST returns?

Credit notes issued for breakage or shortage are reported in GSTR-1 under CDNR for registered buyers and CDNUR for unregistered ones, each linked to the original invoice. They reduce the taxable turnover of the period.

Can a seasonal cracker shop file quarterly instead of monthly?

Yes, shops with turnover up to ₹5 crore can opt into the QRMP scheme: GSTR-1 by the 13th and GSTR-3B by the 22nd or 24th after each quarter. Tax is still paid monthly, so the season’s tax outgo lands in November either way.

Filing GSTR-1 and GSTR-3B after the Diwali season

GST & Accounts · 15 August 2026

Diwali ends, the shutters come down, and then the second season starts: the filing season. A cracker business does most of its year inside six weeks, which means thousands of invoices pile into one or two GSTR periods. The same shop that files a near-nil return in June must suddenly report lakhs of turnover, credit notes from breakage claims, and an HSN summary, all by the same due dates as any other month.

None of it is hard if the bills were recorded properly. All of it is painful if the season lives in a notebook. Here is what actually goes into the post-season returns, and a checklist to close them out.

What the two returns are

GSTR-1 is the detailed outward supply return: every Tax Invoice you issued, reported invoice by invoice for registered buyers and as summaries for the counter trade. GSTR-3B is the short self-declared summary where you state total sales, total tax, input tax credit claimed, and pay the balance. GSTR-1 feeds your buyers’ credit; GSTR-3B is where money moves. The two must agree, and mismatches are what generate notices.

B2B or B2C: the buyer’s GSTIN decides

Every sale in GSTR-1 splits on one question: did the buyer give a GSTIN?

B2B: the buyer is registered. Each invoice is reported individually with the buyer’s GSTIN, invoice number, date, taxable value and tax. Your sub-dealers and party sales go here, and they claim credit from what you report.
B2C: the buyer is an ordinary customer. Counter sales are clubbed into rate-wise, state-wise totals; no individual invoices needed for the usual small bills.

This is why collecting the GSTIN at billing time matters. A wholesaler who bills a registered sub-dealer without recording the GSTIN has made a B2B sale that will be reported as B2C, and the sub-dealer’s credit never appears in their GSTR-2B. Expect an angry phone call in December.

The HSN summary: 3604 all the way down

GSTR-1 includes an HSN-wise summary of everything sold. For a cracker shop this is short: fireworks fall under HSN 3604 at 18%. Turnover up to ₹5 crore reports 4-digit HSN codes (mandatory on B2B supplies); above ₹5 crore, 6 digits. The summary needs quantity, taxable value and tax per HSN, which means your billing records must total quantities across the whole season, in consistent units, not just amounts.

Breakage credit notes go into GSTR-1 too

Every season ends with breakage and shortage claims settled by credit note. Those credit notes are not private adjustments; they reduce your taxable turnover and must be reported in GSTR-1, as CDNR (against registered buyers) or CDNUR (against unregistered ones). Each needs the original invoice reference. A credit note scribbled in the margin of a ledger, with no note of which bill it cuts, cannot be filed correctly.

Due dates: monthly or QRMP

Filing rhythm	GSTR-1	GSTR-3B
Monthly (default)	11th of the next month	20th of the next month
QRMP (turnover up to ₹5 crore)	13th of the month after the quarter	22nd or 24th of the month after the quarter, by state group; tax still paid monthly

For an October-heavy season on monthly filing, the big GSTR-1 lands by 11 November and the payment by 20 November, right when collections from credit parties are still coming in. QRMP pushes the paperwork to January but not the tax: the monthly payment under QRMP still falls in November. Plan the cash for it.

Off-season months still need returns

A seasonal shop’s registration does not sleep when the shutters do. A registered dealer files GSTR-1 and GSTR-3B for every period, including the eight months with no sales at all; those are nil returns, and skipping them quietly builds up late fees day by day until the portal blocks the next filing. The nil return takes minutes. File it every period, or hand your accountant a standing instruction to, and the season’s big return will not arrive with a backlog of penalties attached.

The notebook week, or the export button

Ask anyone who has done it from a notebook: the week after Diwali is sitting with the accountant, reading out bills one by one, arguing over a total that will not tally, and re-adding the same column three times. Two thousand invoices at even a minute each is more than four working days of typing before the accountant even starts.

The alternative is having the split already made when the season ends. Billing software that records GSTIN, HSN and tax per bill can lay out the B2B register, B2C summary, HSN totals and credit note list the day after closing; our GST guide for cracker shops shows what those filing-ready reports look like. The filing itself still goes through your accountant or the portal, but the data argument disappears.

Checklist: closing the season’s returns

Confirm every sale of the season is billed and numbered in sequence, with no gaps or duplicates.
Mark every bill with a buyer GSTIN as B2B; chase missing GSTINs from sub-dealers now, not at filing time.
Total B2C counter sales rate-wise (for crackers, one line at 18%).
List every credit note with its original invoice number, split registered vs unregistered.
Build the HSN 3604 summary: total quantity, taxable value, tax.
Reconcile purchase bills against GSTR-2B before claiming input tax credit in GSTR-3B.
Check GSTR-1 totals equal GSTR-3B totals before either is filed.
Keep the cash ready for the November tax payment; it falls due before season collections finish.

This article is general information for the trade, not tax advice. Due dates shift by notification, so confirm the current calendar with your GST practitioner.

Frequently asked questions

Which return does a cracker shop file first after Diwali?: GSTR-1 comes first, due the 11th of the following month for monthly filers, with invoice-wise detail of the season’s sales. GSTR-3B follows by the 20th with the summary and the actual tax payment.
How are counter sales shown in GSTR-1?: Cash counter sales to unregistered customers are B2C supplies, reported as consolidated rate-wise and state-wise totals rather than bill by bill. Sales to buyers who gave a GSTIN must be reported individually as B2B.
What HSN code goes in the GSTR-1 HSN summary for crackers?: Fireworks fall under HSN 3604 at 18% GST. Businesses with turnover up to ₹5 crore report 4-digit codes, and above ₹5 crore, 6-digit codes, along with quantity, taxable value and tax for the period.
Where do breakage credit notes appear in GST returns?: Credit notes issued for breakage or shortage are reported in GSTR-1 under CDNR for registered buyers and CDNUR for unregistered ones, each linked to the original invoice. They reduce the taxable turnover of the period.
Can a seasonal cracker shop file quarterly instead of monthly?: Yes, shops with turnover up to ₹5 crore can opt into the QRMP scheme: GSTR-1 by the 13th and GSTR-3B by the 22nd or 24th after each quarter. Tax is still paid monthly, so the season’s tax outgo lands in November either way.

Sources

This guide is general information for the crackers trade, not legal, tax or safety advice. Rules change by state and by year; confirm the current position with your licensing authority or accountant.