GSTR 3B

GSTR 3B is key GST return form where taxpayers report sales, ITC claims, tax liabilities and refunds for their GSTIN. It is part of GST system that eliminates cascading taxes and simplifies filing.

What Is GSTR 3B?

GSTR 3B is monthly (or quarterly for QRMP scheme) self-declared summary GST return that all registered dealers must file, even if they have zero liability. Each GSTIN requires separate GSTR 3B and tax liability must be paid by filing due date. This return includes summary figures of sales, ITC claimed and net tax payable. Once you file GSTR 3B, you can't make any changes or corrections to it.

Introduced to ease transition to GST regime, GSTR 3B simplifies reporting of GST liabilities for tax period. Despite introduction of GSTR-1 and GSTR-2 forms, GSTR 3B remains compulsory for all registrants, with few exceptions. It is important for taxpayers to ensure timely payment and filing of GSTR 3B to avoid penalties.

Who Needs To File GSTR 3B?

Every GST registered person must file GSTR 3B to declare and pay their GST liabilities for each tax period. This applies even if there was no business activity (Nil Return). However following are exempt from filing GSTR 3B:

• Taxpayers under Composition Scheme.
• Input service distributors.
• Non-resident suppliers of Online Information and Database Access or Retrieval (OIDAR) services.
• Non-resident taxable persons.

What Is Due Date To File GSTR 3B?

Until December 2019 businesses had to file their GSTR 3B by 20th of following month. From January 2020 due dates changed based on whether you file monthly or quarterly. Monthly filers still have to submit by 20th of each month. Quarterly filers, however have different deadlines: either 22nd or 24th of month following each quarter. Starting January 2021 if you opt for QRMP scheme due date aligns with your state or union territory. This means it is either 22nd or 24th of month following every quarter depending on where your main business is located.

What Is Format Of GSTR 3B?

The GSTR 3B form is summary return that businesses in India need to file every month to declare their summary sales and purchases for that period. Here is simplified breakdown:

• Your GSTIN Number.
• Business Name.
• Details of Sales and Purchases under Reverse Charge.
• Inter-state Sales to Composition Scheme, Unregistered Buyers and UIN Holders.
• Eligible Input Tax Credit.
• Value of Nil-rated, Non-GST and Inward Supplies: Summary of supplies that are either not taxable or exempt from GST.
• Payment of Tax.
• TCS/TDS Credit.

How To File Form GSTR 3B?

To file GSTR 3B on GST portal, follow these steps:

1. Log in to GST portal.
2. Go to ‘Services’ tab.
3. Click on ‘Returns’ and then ‘Returns Dashboard’.
4. Select financial year and return filing period then click ‘Search’.
5. Under GSTR 3B monthly returns, click ‘Prepare Online’ and enter required details.
6. For ‘NIL’ returns select ‘Yes’ for first question and proceed.
7. Fill in applicable values including interest and late fees if any.
8. Confirm details and click ‘SAVE GSTR 3B’.
9. Click ‘SUBMIT’ after verifying all entries. You can preview draft return.
10. Once submitted, ‘Payment of Tax’ tile will activate. Check your cash and credit balance.
11. Select ‘Authorised Signatory’ and choose to file with DSC or EVC.
12. Click ‘Proceed’ and, upon successful filing, ‘ok’ message will appear. Status will change to ‘Filed’. View return details via ‘View GSTR 3B’.

Late-Filing Fees or Penalty Associated With GSTR 3B

The GSTR 3B filing date has been changed several times as taxpayers adapt to the new GST rules. Stay updated on latest GST news and file your GSTR 3B on time. Once submitted form cannot be changed so review it carefully before submitting. If you file late you will incur fees: Rs. 50 per day if you have transactions or Rs. 20 per day for nil return. Additionally if you miss payment due date you will pay 18% annual interest on amount owed calculated from day after due date until payment. 100% penalty applies if you intentionally skip payments. Using GST calculator can simplify math and help avoid penalties.

Difference Between GSTR 3B And GSTR-1

GSTR 3B is summary return filed by taxpayers every month by 20th of next month or by 22nd or 24th for quarterly filers. It shows supplies made GST to be paid input tax credit claimed and purchases subject to reverse charge. It also includes tax payments for month.

On other hand GSTR-1 is monthly or quarterly return where taxpayers report their outgoing supplies for previous month along with their tax liability. It requires uploading invoice-wise information for each transaction allowing government to monitor every deal. This data is important for recipients to accept goods and claim input tax credit correctly.

Conclusion

GSTR 3B is like a monthly summary report for businesses under GST. It helps them declare their sales and purchases easily. By keeping it accurate and submitting it on time, businesses can avoid penalties and keep the tax process smooth.