written by khatabook | June 18, 2021

GSTR-3B: Return Filing, Format, Eligibility & Rules

If you own a business and hold a GSTIN, you are liable to file a monthly or quarterly GSTR-3B return. Avoid unnecessary and untimely demand letters from the IT department by filing your GSTR-3B on time every time. If you are not sure what we are talking about then read on.

GSTR-3B Return

What is GSTR-3B

GSTR-3B or GST Return form 3B is a self-assessed summary of GST returns filed every month, or quarterly in case of QRMP (Quarterly Return Filing and Monthly Payment of Taxes) eligible taxpayers. GSTR-3B was introduced as soon as GST was rolled out in July 2017.

Some of the important points about GSTR 3B are

  • A GSTR-3B can only be submitted for a single GSTIN.
  • Any GST liability should be cleared on or before the due date of GSTR 3B filing.
  • GSTR-3B filing cannot be revised once filed.
  • GSTR-3B is a must even in cases of zero liability

GSTR-3B Eligibility

GSTR-3B is mandatory for every GSTIN with a few exceptions which are listed below.

  •  Input service distributors (ISD)
  • Registered taxpayers covered under the Composition Scheme
  • Non-resident suppliers of OIDAR (Online Information Database Access and Retrieval) services
  • Non-Resident Indians who are registered tax-payers
  • Small taxpayers with a turnover of less than 5 crores. They are required to file GST-PMT 08, a self-assessed quarterly payment of taxes.

Also Read: GST Portal India's Online Tax Office

GSTR-3B Late Submission Fee And Other Penalties.

If you don't file the GSTR-3B within the due date, a late fee is charged as below:

  • Rs. 50 per day is calculated from the due date.
  • Rs. 20 per day is levied for taxpayers with nil liability.

A penalty of 18% per annum is charged on the total outstanding tax, in cases where the GST dues are not paid by the due date. 

Important Dates for GSTR-3B Filing

Until December 2019, GSTR-3 B’s due date was the 20th of the subsequent month. There has been a change in the schedule starting January 2020. The new due dates are based on the annual turnover and your location.

After Jan 2020, the following rules apply:

  • If your annual turnover is greater than 5 crores, the due date for GSR-3B filing is the 20th of every month.
  • If your annual turnover is less than or equal to 5 crores, the due date is determined by the state you are located in. The table below shows the dates for various states and union territories.
  • For those in the QRMP scheme, 22nd or 24th of the month following every quarter as per the above classification of states and UTs.

Aggregate turnover in the previous financial year

Principal place of business

Due date

More than Rs 5 Crores

Any state or UT

20th of every month

Less than or equal to Rs 5 Crores

Chhattisgarh, Madhya Pradesh, Gujarat, Daman & Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman, and Nicobar Islands, Telangana, Andhra Pradesh

22th of every month

Less than or equal to Rs 5 Crores under QRMP scheme

Jammu & Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha

24th of every month

 

  • Most important of all, if the tax amount due was paid on time, but GSTR-3B was filed after the deadline, the late fee will still apply.
  • Finally, those taxpayers who file quarterly GSTR-1 returns are still required to pay tax and file GSTR-3B every month.

Also Read: GST Calculator Online Goods and Services Tax Calculator

GSTR-3B vs GSTR-2A & GSTR-2B

GSTR-2A is used for the real-time update of ITC (Input Tax Credit). GSTR-2B is nothing but the listing of all applicable ITC for the given month (ITC statement).

Both GSTR-2A and GSTR-2B should be used along with GSTR-3B to reconcile Input Tax credits.

It is critical that you go through both GSTR-2A and GSTR-2B before attempting to file GSTR-3B

By using them together, you could

  • Avoid mismatches and avoid notices for claiming excess input tax credits.
  • Avoid missing genuine input tax credits.
  • Stay GST compliant.

GSTR-3B Filing

GSTR-3B is a monthly tax returns form that can be filed using the GST portal. 

Procedure to file your GSTR-3B involves selecting the appropriate financial year and period from the returns dashboard, making changes to the auto-populated data, review and finally confirming your changes. Below is a detailed set of instructions on the same.

Filing GSTR-3B involves several steps that are outlined in detail below. 

  • Step 1 - Login to GST portal

  • Step 2 - Select Services >> Returns >> Returns Dashboard

 

  • Step 3 - Select Financial Year and the Return Filing Period options from their respective drop-down lists and click on Search.

  • Step 4 - Click the Prepare Online button under the Monthly GSTR-3B tab.

  • Step 5 - Answer a series of questions and select Next. If you have assessed that your tax liability is Nil, select Yes for the first question. After that, complete the filing process by directly jumping to step 10. Your answers to all the questions will result in a prefilled table for you to review. Otherwise, go to step 6.

  • Step 6 - Populate each tile with totals under each head. Also, select the interest and late fee if applicable.

While filling in the details, you will need one or more of the below-listed information.

  • Summary of outward and inward supplies which are liable for reverse charge with the applicable tax.
  • Details of supplies that were completed to unregistered entities, entities eligible for composite tax, and UIN holders. These details should be entered according to the destination supplied.
  • Summary of input tax credit claimed.
  • Summary of the reversed input tax credit.

Review the details entered before you hit the confirm button.

  • Step 7 - After having filled in all details, click on Save GSTR-3B at the bottom of the page. Remember this is not the submission, this is just saving the entered information, and edits can be done later if needed. 

You can always click on the Save GSTR-3B button on the GSTR-3B main page while you are entering details so that the entered data is saved and is not lost in case you have a loss of power or your internet connection goes down while you are filing the return.

  • Step 8 - Once you are sure that, you have filled in all necessary information, click the Submit button. If the button is disabled, you might still be missing some required information on the page, review the page again for any misses and retry. 

Once you click on the submit button, all the data entered is frozen and the option to edit will no longer be available. The status on the GSTR-3B page will change to Submitted. The liability ledger and ITC will also get updated on submission.

 

  • Step 9 - You can click on Preview Draft GSTR-3B  to view the draft GSTR-3B return. After submission, the Payment of Tax tile is enabled. You may click this tile to continue paying off your tax liability.

  • Step 10 - Click on the Payment of Tax tile. You will be shown the screen with all tax liabilities along with credits under the Tax Payable column. You may click the Check Balance button to view cash and credit balance, allowing you to check any balance before you settle the payment.

Also Read: GSTR 9C : Reconciliation Statement & Certificate - Format, Filing & Rules

  • Step 11 - Click on Offset Liability once you return back to the previous page.
  • Step 12 - To offset your tax liability, you can use the credit available to you. You can specify the amount to be used from credits to offset your tax liability.
  • Step 13 - Click the Offset Liability button to pay off your tax liabilities.
  • Step 14 - Click on Create Challan button if the Electronic Cash Ledger shows cash less than the amount required to offset the liabilities.

  • In case the Electronic Cash Ledger is showing more cash balance than the amount required for offsetting your liabilities, click on the Make Payment/Post credit to ledger button
  • If the Electronic Cash Ledger shows more cash balance than liabilities, but you are unable to offset the liabilities due to input tax credit utilization principle violations, click on the Make Payment/ Post Credit to Ledger button.
  • Step 15 - Now select the check box for self-declaration and select the authorized signatory.

  • Step 16 - Click on File GSTR-3B with DSC or File GSTR-3B with EVC button.
  • Step 17 - Click on Proceed to finally file your GSTR-3B. You are done!

Important Updates/Notifications

You can check on the latest updates and Notifications on the CIBC website.

Also Read: GST Software: Your Best Friend for Tax Season

Conclusion

GSTR-3B is a regular monthly filing that needs to be carried out without fail. Filing of GSTR-3B is important to ensure a good reputation for your business while also complying with government regulations. If you don't make payments and file within the due dates, interest and late fees would be charged. So make sure to do it within the due dates.

FAQs

Should I file GSTR-3B, if there are no sales or purchases in a given month?

Yes, GSTR-3B should be compulsorily filed even if there are no transactions for a given month

Should the GSTR-3B list out invoice-based details?

No, Invoice level details are not required. GSTR-3B is a self-assessed and self-declared consolidated summary.

Can I file GSTR-3B for all my GSTINs together?

No, you will have to file GSTR-3B for all your GSTINs individually.

Does invoice matching take place in GSTR-3B?

No, invoice matching is not carried out in GSTR-3B as it is a self-assessed summary.

mail-box-lead-generation

Got a question ?

Let us know and we'll get you the answers

Please leave your name and phone number and we'll be happy to email you with information

Related Posts

Difference Between VAT and GST

Difference Between VAT and GST


GST on PPE in India: GST on Face Masks, Sanitisers and Handwash

GST on PPE in India: GST on Face Masks, Sanitisers and Handwash


E-Invoicing for Businesses with Turnover Over Rs.50 Crore

E-Invoicing for Businesses with Turnover Over Rs.50 Crore


Time, Value & Place for Supply for Goods & Services under GST

Time, Value & Place for Supply for Goods & Services under GST


Know About the GST on Motor Cars and Light Motor Vehicles

Know About the GST on Motor Cars and Light Motor Vehicles


Key Aspects of Invoice Furnishing Facility (IFF)

Key Aspects of Invoice Furnishing Facility (IFF)


Effect of GST Rate on Cement Industry

Effect of GST Rate on Cement Industry


What is GST Amnesty Scheme? GSTR-3B Late Fee Relief, Benefits, Eligibility, and Last Date

What is GST Amnesty Scheme? GSTR-3B Late Fee Relief, Benefits, Eligibility, and Last Date


What is EWay Bill? How to Download the EWay Bill in PDF Format?

What is EWay Bill? How to Download the EWay Bill in PDF Format?