Guide to GSTR-3B: Return Filing, Format, Eligibility, Rule

Deskera Content Team -

The Indian government declares many tax formalities, and one such formality is the filing of Goods and Services Tax Return, commonly known as GSTR 3B. It is a return form to be filled by the parties falling under the eligibility criteria, which are a part of GST Implementation.

After understanding the GST returns, GSTR- 1 and GSTR-2A, let's learn about GSTR- 3B, associated terms, and different aspects of the form.

The article covers the following:

• Introduction to GSTR-3B

• Features of GSTR-3B

• Prerequisites & eligibility criteria to file GSTR- 3B

• The simplification process of filing GSTR-3B

• Due dates for GSTR- 3B filing

• Procedure to file GSTR-3B Form Online

• Documents required for GSTR-3B

• FAQs related to GSTR-3B

• How can Deskera help you in your business?

Introduction to GSTR-3B

The GSTR-3B is a consolidated summary return of the inward and outward supplies introduced by the Government of India. The form was presented to relax the requirements for businesses that turned their operations to GST.

The traditional methods to file returns using manual accounting were very tedious and time-consuming for small and medium businesses to fulfill the deadlines. So to ease out the process of tax payment, the Government of India introduced a simple return form called GSTR-3B. The form has been in action since July 2017 and is being practiced at present.

Features of GSTR-3B

The features of GSTR-3B covers the following:

  1. Form 3B is to be filed mandatorily by all the registered taxpayers.
  2. The return should be paid on or before the date of filing.
  3. If there is a case of nil returns, the taxpayers are free from submitting extensive filing details and will be only forwarded to a simple return requiring minimum information.
  4. The business must summarize information about sale and purchase, tax payable, tax paid, & available input tax credit.
  5. The Input Tax Credit should be utilized followed by the posting in the ITC ledger.
  6. If there is any unutilized Input Tax Credit, the net can be used in the subsequent months.
  7. The Ministry of Finance rolled out the special provision for the form 3B return, giving the taxpayer accessibility to adjust and change the tax liability and the rectification in monthly return.
  8. While submitting the returns, it is to ensure that form GSTR- 3B does not contain any provision of reporting different figures for the past months. However, you have the provision for reporting on a net basis along with the values for the current month and placing the figures in the appropriate tables.

Eligible Criteria & Prerequisites to filing GSTR- 3B

Eligibility Criteria

The eligibility criteria of filing the GSTR-3B is followed by fulfilling the benchmark set by the Indian government.

As per the slab, businesses and companies with an annual turnover of more than INR 5 crore in the previous financial year registered under the GST fall under the eligibility criteria for filing the GSTR-3B.

However, the following are the registrants who do not need to file GSTR-3B. These are exemptions to the form.

These are:

1. Suppliers registered under the composition scheme

2. TDS detectors and TCS collectors

3. Non-resident suppliers of OIDAR (Online Information Data Access and Retrieval Services)

4. Input service distributors

5. Non-resident taxable person

Prerequisites

Prerequisites are a mandatory set of instructions required at the time of filing.

The prerequisites for filing the GSTR-3B form are as follows:

1. The GSTR- 3B form needs to be mandatorily submitted by any business that is also liable to file the monthly returns of GSTR 1, GSTR 2 A, and GSTR- 3

2. The process of filing the GST 3B form can be quickly done online through the GSTN portal. You can pay the tax through challans in banks or via online payment.

3. While filing the return, the authentication of the taxpayer profile is a must. Either you will need,

  • An OTP from your registered phone number using an Electronic Verification Code (EVC)
  • By providing a Digital Signature Certificate
  • By using Aadhaar based e-sign

4. If the businesses file their return after the due date, they will be levied to

  • Pay rupees 50 per day of delay
  • Rupees 20 per day of delay for taxpayers that have a Nil tax liability for the month

If, in case, the GST dues are still not paid within the due date, then the taxpayers need to pay an interest of 18% per annum on the amount of outstanding tax to be paid by the concerned.

The simplification process of filing GSTR-3B

As mentioned before earlier, the tax procedure and return work were cumbersome. With the GSTN-3B application, the GSTN has simplified the process and made it user-friendly.

After giving due attention to the problems faced by the general public, several changes and modifications of filing were introduced to ease the use and submission. This step has to be remarkable because it made the system less rigid and less prone to errors.

The GSTN made the critical changes in the GSTR-3B return filing form under the category of

  1. Tax payments- To check whether the tax liability is paid via cash or credit.
  2. Challan Generation- To enhance the cash amount required to pay into the account and utilize ITC with a simple click of a button.
  3. Download facility of draft return- Download the previous draft returns at any stage and at any point in time.
  4. Auto filling of Tax amount- Saving time and effort of the taxpayers to file the tax amounts manually.

Due dates for GSTR- 3B filing

As far as the due date of GSTR-3B filing is concerned, it is required to be paid every 20th of the subsequent month.

For example, the current due date of filing is 20th September 2021 regarding the payment of the previous month of August 2021. The cycle will keep on moving and repeating every month.

Also, if the taxpayers have opted for the QRPM scheme, then the due date is either the 22nd or 24th of the month, falling every quarter based on the state of the principal place of the business.

However, while filing the due dates, it is essential to keep a note of these crucial points:

  1. Taxpayers need to ensure that they pay their taxes within the deadline.
  2. If, in case, the tax is paid within the due date, but the GSTR-3B form is filled after the deadline, then both late fees and interest will be applied.

Procedure to file GSTR-3B Form Online

Following is the step by step procedure of filing the GSTR-3B form online:

Step 1: First, the taxpayer should enter the GSTIN ID and the legal name of the registered person.

Step 2: Then, you will be redirected to the second box that will include the details of the outward and inward supplies liable to reverse charge.

Step 3: After submitting the same, another box will pop up, and you need to fill in the details of inter-state supplies made to unregistered persons, taxable composition persons, and UIN holders.

Step 4: After completing the last details, you will be redirected to the fourth box covering eligible ITC containing all the input tax credit demand from the taxes paid.

Step 5: This step includes values of exempt, non-GST inward supplies and nil-rated

Step 6: The second last step is essential. Here you will be required to pay the total amount of taxes, including several critical data that must be filled with accurate details.

Step 7: Finally, fill in the details of TDS and TCS Credit. There is a proper format mentioning Integrated Tax, Central Tax, and State Tax.

And finally you are done!

Overall, the aim of implementing the GSTR-3B is to make filing easy and convenient for taxpayers.

Documents required for GSTR-3B

Following are the list of documents that documents need to report while filling the application:

  1. Tax on Outward & Reverse Charge Inward Supplies
  2. Total taxable value, IGST, SGST and SGST
  3. Details related to interstate supplies
  4. Details of exempt, nil, and non-GST inward supplies

Following are the list of Frequently Asked Questions (FAQs) related to the GSTR-3B:

Q1. What is the difference between GSTR 3 and GSTR 3B?

Answer: The GSTR-3B is a consolidated return form, whereas the GSTR is a detailed form that includes only the sales and purchase details of the month

Q2. How can we rectify GSTR- 3B?

Answer: Previously, there was a reset tab in the GSTR 3B form, but now it has been removed by the GSTN portal. So once you have filled the form, you cannot rectify the future.

Q3. How to check the status of GSTR-3B?

Answer: Log in to your GST Portal and click on the Main menu. You will get the option to Track Application Status. After that, you need to enter the ARN number assigned to you to view the status.

Q4. How do I show credit notes in GSTR-3B?

Answer: To show the credit note, you need to deduct the credit note amount from total outward taxable supplies.

Q5. Do I need to mention invoice-wise details on the return separately?

Answer: No, you don't need to mention the invoice separately; you need to provide the consolidated numbers.

Q6. If I have 2 GST identification numbers, one from Delhi and the other from Gujarat, can I file only one GSTR-3B for both registrations?

Answer: No, you need to file GSTR-3B for every GSTIN separately. You cannot mix up or clubbed returns.

Q7. If I don't have any sales or purchases for the month, Do I still need to file the GSTR-3B?

Answer: Yes, the GSTR-3B is a mandatory return that needs to be filled by the registered business, irrespective of the transactions.

Q8. Is an invoice matching done in GSTR-3B?

No, the invoice matching is not done in GSTR-3B. It is already summarised under the self-declaration return.

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Key Takeaways

The article covers everything from start to end about the GSTR-3B form, return filing, format eligibility rules, procedures, and FAQs.

Let's take a look at the key takeaways of the article:

  • The Goods and Services Tax (GST) Return is known as GSTR-3B.
  • The GSTR-3B is a consolidated summary return of the inward and outward supplies of the businesses.
  • The filing of GSTR-3B is mandatory for all registered taxpayers.
  • Any businesses that have an annual turnover of more than five crores are eligible to file the form.
  • There are few exemptions for registrants who do not need to file GSTR-3B.
  • The process of filing the GSTR-3B can be done online.
  • If any businesses fail to file the return, they will be entitled to pay the interest and the penalty.
  • The process to file the GSTR-3B has been simplified by the Government of India and made user-friendly.
  • The due date of GSTR-3B filing falls on every 20th of the subsequent month

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