Implementing Goods and Services Tax has transformed how individuals and businesses pay taxes. However, there are several aspects of GST that people are not entirely familiar with regarding the filing of GSTR-3B or, to say, what is GSTR-3B return.
What Is GSTR-3B?
If you are wondering what is GSTR-3B, you have come to the right place. Let’s dive in for an in-depth understanding of what GSTR-3B is and why it is important for organizations to adhere to its rules.
Taxpayers registered under the GST regime in India have to pay GSTR-3B monthly. The GSTR-3B is a cumulative summary of the return of inward and outward supplies and input tax credit claimed. The Government of India has introduced this system to provide relaxation and reduce discrepancies. In other words, taxpayers file the GSTR-3B returns, disclose the supplies made during the month and the GST paid, seek input tax credit claims, and reverse charges on specific purchases.
GSTR-3B return must be filed even though there are no transactions in the relevant month. Also, there is a prescribed due date before which returns filing must be completed. After that due date, fines and penalties are attested on filing late returns.
What Is 3B In GST?
3B is a self-declaration form in the GST scheme. This process is framed for business owners registered under GST to declare their monthly purchases and sales.
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Who Should File GSTR-3B?
All the businesses that are registered under the GST system have to compulsorily file GSTR-3B on a monthly basis. Income slabs are provided on which the GSTR-3b has to be filed. But there are some entities that are exempted from filing GSTR-3B. They are as follows:
- Taxpayers registered under the composition scheme.
- Input service distributors.
- Non-resident suppliers of OIDAR (Online Information Database Access and Retrieval) services.
- Non-resident taxable person.
When Do You Need To File The GSTR-3B Return?
It is important to know when to file the GST-3B returns. There are many tools available in the market to help you automate and streamline the process.
Mainly there are two divisions that must be considered when filing GSTR-3B. They are as follows.
- The first part is for businesses whose annual turnover exceeds 5 Crores. Their due date is the 20th of every month.
- The second part is for the businesses whose annual turnover is less than or equal to 5 Crores, 2 due dates have been provided for this division, i.e., the 22nd and 24th of every month, depending on the state where the business is situated.
For example, you should file the GSTR-3B for April by the 20th of May if your annual turnover is greater than 5 Crores. If the annual turnover is less than or equal to 5 Crores and your business is situated in states like Gujarat, Maharashtra, Kerala, and Tamil Nadu, then the due date for filing GSTR-3B is 22nd May. However, if the business is in states like Delhi, Haryana, Punjab, Rajasthan, etc., the due date for filing GSTR-3B is 24th May.
Consequences Of Late Filing Of GSTR-3B
Late fees and penalties are levied on the tax payable if the filing is done post the due date. The charges accrued on the outstanding tax are as follows:
- Rs 50/day for delay.
- Rs 20/ day for registered business owners filing nil returns. However, the maximum late fee charged shall be capped at Rs 500 only for filing Nil GSTR-3B, i.e., Rs 250 for CGST and SGST each.
If there is a tax liability on a taxpayer for April and he is liable to pay tax on or before 20th May, and he misses the due date and pays the tax on 30th May, then counting from the 21st May fine of Rs 50/day will be levied till 30th May. So he will have to pay a fine of Rs 500 in addition to the tax payable.
Similarly, If an assessee has nil tax liability and has to file a nil GSTR-3B before 20th May for the tax period of April and fails to pay before the due date and pays on 30th May. Then counting from 21st May fine of Rs 20/day will be levied till 30th May.
How to File Nil GSTR-3B?
Nil GSTR-3B has to be filed by the entities falling under the following criteria during the particular tax period:
- If there is no sale or purchase of any goods or services.
- There is no reverse charge liability.
- There is no intention of claiming any input tax credit.
- Have no liability during the specific tax period.
Then the registered taxpayers need to file a nil GSTR-3B return. This form can be filed in two modes:
- Online through the GST portal.
- Offline via SMS.
Where To File Your GSTR-3B Form?
You can pay your tax liability in cash at an authorized bank via challans. However, you cannot pay more than INR 10000 per challan. Alternatively, you can file the GSTR-3B through the GST portal and pay online.
Also, Read A Complete Guide of New Invoice Rules Under GST for 2022-2023.
How To File GSTR-3B Online?
The GSTR-3B can be filled online easily by accessing the GST portal. It is important to follow the step-by-step procedure as mentioned below:
Step 1: You must log in to the GST Portal.
Step 2: Locate the ‘Services’ tab. From the drop-down menu, click on ‘Returns.’ Then, select ‘Returns Dashboard.’
Step 3: You will be on the ‘File Returns’ page. Select the ‘Financial Year’ and the ‘Return Filing Period’ from the drop-down list. To go on, click on ‘SEARCH.’
Step 4: Locate the tile titled ‘Monthly Return GSTR-3B’ and click ‘PREPARE ONLINE.’
Step 5: Enter the values for each section. You must also input the total amounts for each head. If Interest and Late Fees are applicable, you must enter that too.
Step 6: Click ‘SAVE GSTR-3B’ at the foot of the page. You will find a message on top of the page when it is saved successfully.
Step 7: Click the ‘SUBMIT’ button at the bottom of the page to complete the submission of your finalized return. Again, you will see a success message at the top of the page.
Note: once you ‘SUBMIT’ the return, you cannot change the data. This also triggers the update of the ITC and Liability Ledger.
The GSTR-3B will change to ‘Submitted’ on the top-right corner of the page.
Step 8: Scroll further down the page and click the ‘Payment of Tax’ tile. You must now offset the liability and pay the taxes.
Step 9: Select ‘CHECK BALANCE’ to review your credit balance. Select ‘OK.’ You will go back to the previous page.
Step 10: Click ‘OFFSET LIABILITY.’ You will receive a confirmation message. Click ‘OK.’
Step 11: Select the checkbox adjoining the declaration at the bottom of the page. Select the authorized signatory from the ‘Authorized Signatory’ drop-down box below. Select one option- ‘FILE GSTR-3B WITH DSC’ or ‘FILE GSTR-3B WITH EVC’.
Step 12: A ‘Warning’ message will pop up. Select ‘PROCEED.’
Step 13: You will find a message with confirmation information on your screen. Note the information and click ‘OK.’ The GSTR-3B filing status will now appear as ‘Filed.’ Select ‘VIEW GSTR-3B’ to view the return.
Important Aspects to Consider When Filing GSTR-3B
Before filing GSTR-3B, an assesses has to consider the following aspects to conduct the filing in a streamlined manner. Let’s have a look.
1. Prerequisites for GSTR 3B Filing
Businesses required to file the monthly returns GSTR-1, GSTR-2, and GSTR-3 are liable to file GSTR-3B. You may submit the GSTR-3B online using the GSTN portal. You can pay tax liabilities online or in cash at authorized banks within a particular period.
To pay online, you will need either of the following:
- Digital Signature Certificate
- OTP from the registered mobile number to verify the return using an Electronic Verification Code (EVC)
- Aadhar-based e-sign
2. Filing GSTR-3B
You must file the GSTR-3B return for every GSTIN you have. If your business has operations in other states and they have their respective GSTINs, you must file an individual return for each GSTIN.
The GSTR-3B form may look complicated at first glance, but filling the GSTR-3B online is more straightforward than one might think.
Also, Read: How to Calculate & Claim GST Refund?
3. Preparing to File Your GSTR-3B Return
The GSTR-3B form does not require you to provide invoice-level information or figures from every sale. You just need to fill out the total amounts for each category:
3.1 Outward Supplies and Inward Supplies That Are Liable to Reverse Charge
Outward taxable supplies excluding zero-rated, NIL-rated, and GST exempted ones
- Zero-rated outward taxable supplies
- NIL-rated and exempted outward taxable supplies
- Inward supplies liable to reverse charge
- Non-GST outward supplies
3.2 From 3.1(a), details of Inter-State Supplies made to the following
- Unregistered persons
- Composition taxable persons
- Unique Identification Number (UIN) holders
4. Eligible ITC
(A) ITC Available (Full or in part) on
- Imported goods
- Imported Services
- Inward supplies are liable to reverse charge, excluding imported goods and services.
- Inward supplies from ISD (Input Service Distributor)
- Any Other ITC
(B) ITC Reversed
- As per CGST/SGST Rules 42 and 43
- Any other reversed ITC in your books
(C) Net ITC Available: [4 (A)-4 (B)]
(D) Ineligible ITC
- As per section 17(5) of CGST/SGST Act
- Others
5. Exempt/Nil-Rated/Non-GST Inward Supplies
- Composition Scheme/Exempt/NIL Rated Suppliers
- Non-GST Inward Supply
6. Payment of Tax
- Integrated Tax
- Central Tax
- State/UT Tax
- Cess
7. Values getting auto-populated from GSTR-1 and GSTR-2B to form GSTR-3B
For every GST registered taxpayer filing GSTR-3B, their form gets auto-populated based on values declared by respective suppliers in their form GSTR-1 and the system-generated summary form GSTR-2B.
Conclusion
Investing in the right GST software can help your organization streamline the filing process and ensure that you adhere to the timeline.
Filing the GSTR-3B return simply boils down to entering accurate information correctly. Gather all the information you need beforehand. You may even use accounting software to prepare this financial information before you file the return.
Frequently Asked Questions
The basic and essential difference between GSTR-1 and GSTR-3B is as follows:
- Meaning: GSTR-1 is to be filed monthly or quarterly based on the assessee's turnover. The assessee has to provide all the relevant information regarding outward supplies i.e., sales or turnover. At the same time, GSTR-3B is a self-assessment return that must be filed monthly. The assessee must provide all the information regarding the purchase and sales.
- Filing Date: If the annual revenue of the assessee exceeds Rs 1.5 Crores in the previous or current year, then the due date to file GSTR-1 of the current month is the 11th day of the next month. However, if the annual turnover is less than Rs 1.5 Crores, then GSTR-1 can be filed quarterly, and the due date to file quarterly returns will be the 30th or 31st day of the month after the quarter. Irrespective of the assessee's turnover, GSTR-3B has to be filed monthly, and the due dates are mentioned in the blog in detail.
- Tax Payable: While filing GSTR-1, the assessee has to pay no amount of tax. Whereas in GSTR-3B, filing is completed only after paying the outstanding tax. Even in the case of no tax liability, the assessee has to file a nil return.
- Penalties: A penalty of Rs 200/day is levied on the assessee for filling GSTR-1 after the due date. For nil GSTR-3B return, the penalty is Rs 20/day post the due date and Rs 50/day in case of taxable return.
ClearTax is a Government authorized GST Suvidha Provider (GSP) offering GST compliance services. So you can easily file GSTR-3B using the software. The process to file GSTR-3B using ClearTax is as follows:
- Log in to the ClearTax GST software using your registered email ID and password.
- Navigate to the 'Returns' tab and click 'New Return.'
- Select the relevant financial year and month to file the GSTR-3B return.
- Enter the details of your outward and inward supplies and input tax credit in the appropriate sections.
- Validate the return and ensure all the details are accurate and complete.
- Generate the return summary and sign it using your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
- Submit the return to the GST portal for processing.
No, there is no concept of invoice matching in GSTR-3B, as it is a summary return. Invoice matching is included in returns like GSTR-1 and GSTR-2. With the newly implemented RET-1 in the GST system, there will be an auto-populated section for the outward supplies reported by the assessee in GSTR-1. Moreover, even though there is no invoice matching in GSTR-3B, the assessee must ensure the accuracy of the details reported to avoid discrepancies in GST compliance.
Amaey Anand is a certified accountant with over 10 years of experience in the finance industry. He has worked with various organizations to streamline their petty cash management processes and reduce inefficiencies. He has also written several articles on financial management for leading publications such as Zensuggest and The Wall Street Journal.
