GSTR 3B Filing Deadlines, Benefits, and How Online CA Services Can Assist

1. What is GSTR-3B Form?

GSTR-3B is a monthly self-declaration return that businesses need to file under GST. It provides a summary of the sales, purchases, (tax on sales) output tax, (tax on purchases) input tax, and the net tax payable or refundable for a relevant period. The GSTR-3B form is necessary for calculating the tax liability and for making GST payments.

The important details that need to be provided in GSTR-3B include:

• Outward Supplies: The total value of goods and services sold during a relevant period. It includes the GST applicable.
• Inward Supplies: The total value of goods and services purchased during the relevant period including the GST paid.
• Input Tax Credit (ITC): It means a credit that businesses can claim for the tax paid on inputs and purchases.
• Net Tax Payable/Refundable: The final amount of GST liability after considering the Input Tax Credit.

Unlike GSTR-1, which requires detailed information of outward supplies during a relevant period, GSTR-3B is a simplified summary return, designed to make compliance easier.

2. Why is GSTR-3B Important?

GSTR-3B is important for the following reasons:

• Tax Payment: GSTR-3B is the primary return for businesses to report their outward supplies, tax liabilities and pay GST to the government. It is the document used to pay taxes to the government monthly or quarterly.
• Claiming ITC: It helps businesses to claim Input Tax Credit (ITC) on their purchases. Pertinent to note that without filing GSTR-3B, businesses cannot avail of ITC.
• Compliance: Filing GSTR-3B ensures that businesses comply with the GST Act, avoiding penalties for non-compliance.
• Government Tax Revenue: It acts as an interim filing, providing the government with a snapshot of tax receipts and liabilities, ensuring the smooth collection of GST revenue.

3. Who is Required to File GSTR-3B?

The following categories of taxpayers are required to file GSTR-3B:

• Regular Taxpayers: Any GST-registered business that is not eligible for the composition scheme must file GSTR-3B.
• Composition Scheme Taxpayers: Taxpayers who are eligible for the composition scheme must file GSTR-4 (instead of GSTR-3B) on quarterly basis.
• Non-Resident Taxable Person: Non-resident businesses must file GSTR-3B, along with other applicable returns.
• Casual Taxable Persons: Businesses that occasionally supply goods and services in a state other than their principal place of business must file GSTR-3B.
• E-Commerce Operators: E-commerce platforms and online sellers who are registered under GST must file GSTR-3B.

4. What are the Components of GSTR-3B?

GSTR-3B is divided into several sections, each catering to specific details about the taxpayer’s transactions. Below are the main components of GSTR-3B:

• Part A: Outward Supply (Sales) – This part captures the details of sales made during the month, segregating them into different categories like taxable, exempt, and nil-rated supplies.
  • Table 3.1: Details of outward taxable supplies, categorized under CGST, SGST, IGST, and Cess.
  • Table 3.2: Details of exempt and nil-rated supplies.
• Part B: Inward Supply (Purchases) – This section is used to report inward supplies and to claim Input Tax Credit (ITC).
  • Table 4: Report the ITC available on inward supplies of goods and services, segregated by CGST, SGST, IGST, and Cess.
• Part C: Net Tax Payable/Refundable – Based on the outward and inward supplies, this section calculates the net GST liability.
  • Table 5: Net GST payable (output tax minus input tax credit).
  • Table 6: Payment of taxes (details of the taxes paid for the period).
• Part D: Tax Paid – This part captures the payment details of taxes, which must match the GST liability calculated in Part C.
• Part E: Interest and Late Fee – If any interest or late fee is payable due to delayed filing or payment, it is reported here.
• Part F: Other Information – Any other details or information as required by the tax department.

5. How to File GSTR-3B?

Filing GSTR-3B is a simple process and can be done through the GST Portal. Below is a step-by-step guide for filing GSTR-3B:

1. Log into the GST Portal: Use your GSTIN and password to log into the official GST portal (www.gst.gov.in).
2. Navigate to Returns Dashboard: On the dashboard, go to the ‘Services’ tab, select ‘Returns’, and click on ‘File Return’.
3. Select GSTR-3B: Choose GSTR-3B from the available list of returns.
4. Enter the Period: Select the relevant financial year and return period (month/quarter) for which the GSTR-3B is being filed.
5. Fill in the Details: Input all the required information in the respective sections, including outward supplies, inward supplies, input tax credit, and tax liability.
6. Preview and Verify: After entering all details, preview the return and check for errors or discrepancies.
7. Submit the Return: Once you are sure the details are accurate, submit the return.
8. Pay the Tax: After submission, if any tax is payable, proceed with making the payment using Net Banking, NEFT/RTGS, or other available options.
9. Acknowledge the Filing: After payment, an acknowledgment receipt (ARN) will be generated. Save this receipt for future reference.

6. What is the Deadline for Filing GSTR-3B?

The due date for filing GSTR-3B depends on the taxpayer’s category and whether they are filing on a monthly or quarterly basis:

• Monthly Filers: For most GST taxpayers, GSTR-3B must be filed by the 20th of the following month.
• Quarterly Filers: Taxpayers under the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme must file GSTR-3B for the quarter by the 22nd of the month following the quarter.

For example:

• December 2023: GSTR-3B must be filed by January 20, 2024.
• Q2 (July- September2024): GSTR-3B must be filed by October 24, 2024.

The deadlines may also vary due to extensions granted by the GST Council, so it is essential to stay updated.

7. What Happens if GSTR-3B is Filed Late?

Late filing of GSTR-3B can result in several consequences, including:

• Late Fee: A late fee of ₹50 per day (₹20 for taxpayers with NIL tax liability) is applicable for every day after the due date until the return is filed, subject to a maximum of rupees five thousand (₹5,000/-).
• Interest: If GST is not paid on time, interest at the rate of 18% per annum is charged on the tax due.
• Penalties: In case of deliberate evasion or non-payment, penalties can be imposed.
• Non-Availment of ITC: Input Tax Credit (ITC) cannot be claimed until the GSTR-3B is filed.

8. What is term Input Tax Credit (ITC) in GSTR-3B?

Input Tax Credit (ITC) refers to the tax credit which a taxpayer can claim for the GST paid on inputs (goods and services purchased for business purposes). GSTR-3B allows all the registered businesses to claim ITC on their purchases, provided:

• The purchased goods and services are used for business purposes.
• The tax invoices are valid.
• The GST paid is reflected in GSTR-2A/2B or the supplier has filed GSTR-1.

ITC is deducted from the total tax liability in order to determine net GST payable to the tax department. If the ITC exceeds the tax liability, a refund can be claimed subject to specified conditions and criteria.

9. Can GSTR-3B be Revised?

Unlike GSTR-1, GSTR-3B cannot be revised after it has been filed. However, if there is a mistake or omission, the taxpayer must make the necessary correction in the next period’s GSTR-3B or in GST Annual Return filing. The correction can be done by including the missed details in the subsequent month’s return.

Taxcellent assist you in filing GSTR3b timely on monthly and quarterly basis.