Comprehensive guide to GSTR-3B: A Deep Dive into the Form’s Structure, Eligibility, Penalties, Filing Steps, and Deadlines

What is GSTR 3-B?

GSTR 3-B is a self-declared Summary GST return filed every month (quarterly for the QRMP scheme). Taxpayers need to report the summary figures of sales, ITC claimed, and net tax payable in GSTR-3B.

• A Separate GSTR-3B must be filed for every GSTIN
• The GST liability must be paid on or before he date of filing GSTR-3B, earlier of its due date
• The GSTR – 3B once filed cannot be revised
• Even in case of zero liability, GSTR-3B must be compulsorily filed

Who should file GSTR 3B?

Every person who is registered under GST must file GSTR-3B

However, the following registrants do not have to file GSTR-3B

• Taxpayers registered under the Composition Scheme
• Input service distributors
• Non-resident suppliers of OIDAR service
• Non-resident taxable persons

Late Fee & Penalty

A late fee is charged for filing GSTR-3B of tax period after the due date. It is levied as follows:

• Rs.50 per day of delay
• Rs.20 per day of delay for taxpayers having nil tax for the month

In the case the GST dues are not paid within the due date, interest at 18% per annum is payable on the amount of outstanding tax to be paid.

Due Dates for GSTR-3B Filing

• For monthly filers, due date for filing of Form GSTR-3B is 20th day of the month following the month (tax period) for which the return pertains.
• For quarterly filers, due date for filing of Form GSTR-3B, as notified for different States/UTs, is 22nd and 24th day of the month following the quarter for which the return pertains.
• However, due date for filing of Form GSTR-3B can be extended by Government through notification.

The following are essential points to note:

• Taxpayers must ensure to pay taxes and file GSTR-3B within the deadline.
• The late filing of GSTR-3B attracts a late fee and interest at 18% per annum
• In case the tax was paid within the due date but the GSTR-3B was filed after the deadline, both late fees and interest will apply.
• Taxpayers (including those not opting for the QRMP Scheme) filing quarterly GSTR-1 returns must still pay tax and file GSTR-3B every month.

GSTR-3B vs. GSTR-2A & GSTR – 2B: comparison

Reconciliation of GSTR-2A (real-time update of ITC) and GSTR-2B (ITC statement for the month) with GSTR-3B is needed to:

• Avoid notices due to excess input tax credit is missed out on.
• Be informed if any genuine input tax credit is missed out on.
• Nudge the supplier to upload the invoice details in the GSTR-1, if not uploaded.
• Stay GST compliant and improve the GST compliance rating

GSTR-3B vs GSTR-1: Comparison

Reconciliation of GSTR-1 with GSTR-3B is needed to:

• Avoid interest & penalties due to the short payment of tax.
• Know if any invoice is missed out on or duplicated.
• Allow the recipient to claim an accurate input tax credit based on his GSTR-2 A & GSTR-2B
• Stay GST compliant and improve the GST compliance rating!

HOW TO FILE GSTR-3B ON GST PORTAL

GSTR-3B is a monthly return. All regular taxpayers need to file this return till March 2021. You can file this return till March 2021. You can file your return on GST Portal. There are some inconveniences while filing from GST Portal as given below.

• Copy-paste of values is not allowed.
• Chances of error are increased as manual entry of values has to be made.
• GST liability is calculated after submitting the return.
• Auto-filling of return on the sales and purchase details provided by you. This means no manual entries, no chances of error.
• Calculation of GST liability before submitting the return.
• Desktop App that allows one click import of sales and purchase data form Tally for GSTR-3B filing without navigating out of the App.

Here is a step-by-step guide to filing GSTR-3B on GST Portal

Step 1 – Login to GST Portal and on the homepage, you can find the return filing status for the last five tax periods.

Step 2 – Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.

Step 3 – This displays the ‘File Returns’ page. Select the ‘Financial Year’ & ‘Return Filing Period’ for which you want to file the return from the drop-down list. Click the ‘SEARCH’ button.

Note that if you submit quarterly returns, you must also file Form GSTR-3B for the last month of the year. If you choose Month 1 or Month 2 of the quarter, the form GSTR-3B tile will not be usable.

Step 4 – On ‘Monthly Return GSTR-3B’ tile, click the ‘PREPARE ONLINE’ button.

Step 5 – Answer a list of questions and click on the ‘NEXT’. For filing ‘Nil’ return, select yes in the first question. Thereafter, complete the filing by following step 10.

For an easier way to file a ‘Nil’ GSTR-3B within 30 seconds, use Clear Tax GST desktop app.

In any other case, answer all the questions as ‘Yes / No’. Accordingly, the respective tables / fields shall be made available while entering information in the next step.

Note: In case you want to auto-populate from form GSTR-1 or form GSTR-2B, then only the first question is displayed in the questionnaire page. The advisory page gets displayed as shown below.

This page gives the details of tables 3 and 4 as auto-populated from form GSTR-1 into form GSTR-3B. Thereafter, click on the “CLOSE” button to proceed.

Step 6 – Enter values in each tile displayed as may be applicable. You need to enter totals under each head. Fill in Interest and Late Fees, if applicable.

However, you can verify GSTR-3B’s auto-generated details in the tab “SYSTEM GENERATED GSTR-3B’. Click on that button to download and view system-computed details from forms GSTR-3B. Subsequently, the taxpayers can edit the auto-populated values if needed. But the taxpayers can continue with their filing based on the edited values, and the system will not restrict in any way.

If you have opted into filing of both GSTR-1 and GSTR-3B quarterly and has filed GSTR-1 and opted to/out to file the IFF for first two months of the quarter, the details in PDF are generated on monthly basis.

One or more of the following information is required to be entered in tiles while filing GSTR-3B return:

1. Summary details of outward supplies and inward supplies liable to reverse charge with taxes. Note that only table 3.1 (d) is auto-populated from GSTR-2B.

2. Details of inter-state supplies made to unregistered persons, composition taxable persons, composition taxable persons and UIN holders and taxes, out of sales entered at sl.no. 1 above to be entered according to the place of supply. Although the data for this table is auto – populated from GSTR-1, it can be edited later on.

3. Summary details of eligible input tax credit claimed, input tax credit reversed and ineligible input tax credits.

4. Summary details of exempt, Nil and Non-GST inward supplies as either intra-state or inter-state supply.

5. Details of Interest and Late fee under each tax head – IGST, CGST, SGST/UTGST and Cess. The late fee is system- computed based on the number of days passed after the due date of filing.

Note: You can click on ‘ADD’ or ‘DELETE’ to make modifications in the respective tiles. Once data is entered on a tile. Click on ‘CONFIRM’.

Step 7 – Click the ‘SAVE GSTR-3B’ button of the page after all details are added. You can also click on ‘SAVE GSTR3B’ button on the GSTR-3B main page to save the data entered at any stage and come back later for edits.

A message is displayed on the top of the page confirming that data is successfully saved.

Step 8 – Once all the details are saved, ‘SUBMIT’ button at bottom of the page is enabled. Click the ‘SUBMIT’ button to submit the finalized GSTR-3b return.

A success message is displayed at the top of the page. Once you submit the form, the added data is frozen. No changes in any fields can be made after this.

The ITC and Liability ledger will also get updated on submission. The status of GSTR-3b will be changed to ‘Submitted’.

Step 9 – Scroll down the page. You can view the draft GSTR-3B return by clicking on ‘PREVIEW DRAFT GSTR-3B’. You will also see that the “Payment of Tax’ tile is enabled after successful submission of the return. To pay the taxes and offset the liability, perform the following steps:

• Click the ‘Payment of Tax’ tile.
• Tax liabilities as declared in the return along with the credits, get updated in the ledgers, and are reflected in the ‘TAX payable’ column of the payment section. Credits get updated in the credit ledger and the updated balances is seen hovering on the specific headings in the payment section.
• Click the ‘CHECK BALANCE’ button to view the balance of cash and credit. This functionality enables the taxpayers to check the balance before making the payment for the respective minor heads.
• Click the ‘OK’ button to go back to the previous page.
• Provide the amount of credit to be utilized from the available credit (in the separate heads) to pay off the liabilities.
• While providing the inputs please ensure the utilization principles for credit are adhered to, otherwise, the system will not allow for the offset of liability.
• Click the ‘OFFSET LIABILITY’ button to pay off the liabilities. A confirmation message is displayed. Click ‘OK’ button.
• If cash balance in Electronic Cash Ledger is more than the amount needed to offset the liabilities, click on the ‘MAKE PAYMENT/POST CREDIT TO LEDGER’ button.
• If cash balances in Electronic Cash Ledger is more than the amount needed to offset the liabilities, but due to ITC utilization principle, offset is not allowed, then click on the ‘MAKE PAYMENT / POST CREDIT TO LEDGER’ button.

For more details on the steps to make GST payment, read our article on ‘How to make GST payment online?’

Step 10 – Select the checkbox for declaration. From the ‘Authorized Signatory’ drop-down list, select the authorized signatory. Click the ‘File GSTR-3B WITH DSC’ OR FILE GSTR-3B WITH DSC’ or ‘FILE GST-3B WITH EVC’ button.

Step 11 – click the ‘PROCCED’ button.

On the successful filing, a message is displayed. Click the ‘OK’ button.

The status of GSTR-3B return will now have changed to ‘Filed’. You can click the ‘VIEW GSRT-3B return.

CONCLUSION:

Hence, Form GSTR-3B simplifies tax reporting under India’s GST framework, with an accessible format for diverse taxpayers. It encompasses reporting of supplies, tax liabilities, and credits. Meeting deadlines is vital to avoid penalties and ensure compliance. Businesses must comprehend its structure, eligibility, filing, and due dates for accurate record-keeping, tax fulfillment, and GST system efficiency.

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