The implementation of the GST system has effectively removed the cascading tax effect and streamlined the taxation process. Since its inception, numerous GST return forms have been introduced for distinct purposes. GSTR-3B is one of the essential return forms.
To maximize benefits and avoid potential consequences, taxpayers should understand how to file GSTR 3B along with its key aspects.
Understanding GSTR 3B
GSTR-3B is essentially a monthly self-declaration that registered dealers must file in addition to GSTR 1 and GSTR 2. It provides a consolidated summary of inward and outward supplies and was introduced by the Government of India to facilitate businesses transitioning to the GST framework.
Simply put, this form offers a simplified way to declare GST liabilities for a specific tax period. It is important to note that GSTR-3B cannot be revised, and separate GSTR-3B forms must be filed for each GSTIN. Taxpayers must ensure payment of GSTR-3B’s tax liability by the due date of the same month’s filing.
All GST-registered taxpayers must submit GST return 3B, including ‘NIL’ returns. However, a few categories are exempt from this self-declaration, including:
- OIDAR suppliers
- Non-resident taxable persons
- Input service distributors and composition scheme taxpayers
- Small-scale taxpayers
- Non-resident taxable persons
GSTR 3B Filing Deadline
GSTR-3B must be filed monthly, with a submission deadline set for the 20th of the following month. For example, the GSTR 3B due date for November 2019 was December 20, 2019.
Taxpayers should also keep these points in mind:
- A delay in filing GSTR-3B incurs an 18% annual interest on the due tax amount.
- A late fee of Rs.50 per day is applicable for delayed filing.
- Even if taxpayers file GSTR-1 quarterly, they must still submit GSTR-3B monthly.
- If taxes are paid within the due date but the return is filed late, both interest and penalties apply.
The late fee depends on the number of delayed days. Taxpayers with nil tax liability must pay a Rs.20 per day penalty.
Steps to File GSTR-3B
GSTR-3B can be filed online or offline. Taxpayers may also download the form, fill it out, and upload it later.
Follow these steps to file GSTR-3B on the GST portal:
Step 1 – Log in to the GST official portal.
Step 2 – Go to the ‘Services’ tab.
Step 3 – Click on ‘Returns’.
Step 4 – Select ‘Returns Dashboard’.
Step 5 – On the ‘File Returns’ page, choose the ‘Financial Year’ from the dropdown menu.
Step 6 – Select the applicable ‘Return Filing Period’ and click ‘Search’.
Step 7 – Locate the GSTR-3B monthly returns section.
Step 8 – Click ‘Prepare Online’ and enter the necessary details.
Step 9 – Click the ‘NEXT’ button.
To file ‘NIL’ returns, select ‘Yes’ for the first question and proceed.
Step 10 – Input the applicable values in the displayed sections. Include interest and late fees if necessary.
Step 11 – Modify details using the ‘ADD’ or ‘Delete’ buttons.
Step 12 – Click ‘Confirm’.
Step 13 – Click ‘SAVE GSTR-3B’.
Step 14 – Click ‘SUBMIT’ after verifying all details. The return status can be checked at the top right corner.
Step 15 – Click ‘Preview Draft GSTR-3B’ to review the return.
Once submitted, the ‘Payment of Tax’ section is enabled. Taxpayers can click ‘Check Balance’ to view cash and credit balances.
Step 16 – Select ‘Authorized Signatory’ from the dropdown menu.
Step 17 – Choose ‘FILE GSTR-3B WITH DSC/ FILE GSTR-3B WITH EVC’.
Step 18 – Click ‘Proceed’.
After successful submission, a confirmation message appears. Click ‘OK’. The return status will change to ‘Filed’.
To check return details, click on the ‘View GSTR-3B’ button.
What Information is Included in GSTR 3B?
This form consists of six sections where taxpayers must input specific details. Below is a breakdown of the information contained in GSTR 3B:
| No. | Section | Details Covered |
| a) | Section 1 | Details of outward and inward supplies subject to reverse charge. |
| b) | Section 2 | Interstate transactions with unregistered entities, UIN holders, and composition scheme taxpayers. |
| c) | Section 3 | Input Tax Credit (ITC) details. |
| d) | Section 4 | Information on nil-rated, exempt, and non-GST inward supplies. |
| e) | Section 5 | Tax payment details. |
| f) | Section 6 | Credits for TCS and TDS. |
Late Fee & Penalty Charges
Submitting GSTR-3B after the due date incurs a late fee, calculated as follows:
- ₹50 per day for delayed filing.
- ₹20 per day for taxpayers with no tax liability for the respective month.
If GST payments are not made within the due period, an interest charge of 18% per annum applies to the outstanding tax amount.
How GSTR 2A and GSTR 3B Are Related
It is essential to reconcile GSTR-3B with GSTR-2A. Below are key reasons why this is necessary:
- Ensures ITC claims are not based on fraudulent invoices.
- Avoids mistakes such as duplicate entries or missing invoice details.
- Allows easy detection and correction of discrepancies between GSTR-1 and GSTR-3B.
- Ensures missing outward supply details in GSTR-1 are communicated to the supplier to prevent mismatches.
- ITC reconciliation between GSTR-3B and GSTR-2A is required for filing the annual return (GSTR-9).
However, there are instances where reconciliation is not possible due to:
- ITC claimed for IGST on imported goods or services.
- ITC availed in the financial year when goods or services were received.
- Transitional credit claimed under TRAN-I and TRAN-II.
- ITC utilized for GST paid under the Reverse Charge Mechanism (RCM).
The primary reason for discrepancies is either an unfiled corresponding GSTR-1 or an unclaimed ITC. If any mismatch is found in ITC claims between GSTR-2A and GSTR-3B, taxpayers must pay the wrongly availed credit along with applicable interest.
To minimize discrepancies, it is crucial to ensure accurate reporting and error-free submissions for both GSTR-3B and GSTR-2A.