All about GSTR 3B

1.What is GSTR 3B ?

GSTR 3B is a simple return form introduced by the Government. A separate GSTR 3B form has to be filed for each GSTIN. GSTR 3B form does not require invoice level information. It only requires total values for each field, like a summary, for the month for which filing is done.

Filing GSTR 3B form is mandatory for all those who have registered for the Goods and Services Tax (GST). The GSTR 3B is a simple tax return form introduced by the  Central Board of Excise and Customs (CBEC) for the month of July and August. The forms - GSTR-1, GSTR-2 and GSTR-3 - for the months of July and August are to be filed in the month of September. In the interim, all GST registrants have to file GSTR-3B form .

It is must that you have a separate GSTR 3B file for each Goods and Services Tax Identification Number (GSTIN) you have. You can mention only total values for each field in this form; invoice level information is not required for this form.

An important point to note is that some portions of Part B of GSTR-3 will be automatically populated from GSTR 3B file. So, in case there is any discrepancy between the two forms you can correct GSTR-3 later and deposit the taxes payable.

2.Who has to file and what details to be furnished

The Goods and Service Tax mandates filing of GSTR 3B return even by those taxpayers with nil returns. It is a monthly self-declaration form that has to be filed by all taxpayers irrespective of the returns.

The details that have to be furnished in the form include:

Details of sales and purchase made by the registered taxpayer.

• Liable Input Tax Credit
• Liable Tax
• Tax Paid

GSTR 3B must be filed by everyone who has registered for GST. However, individuals such as - Input Service Distributors, Composition Dealers, Suppliers of online information and database access or retrieval services (who have to pay tax themselves as per Section 14 of the IGST Act, and Non-resident taxable person - do not have to file GSTR 3B.

Following registrants do not have to file GSTR-3B:

1. Input Service Distributors
2. Businesses registered under GST Composition Scheme
3. Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves.
4. Non-resident taxable person

9 Important Points About GSTR-3B

Before we take a deeper dive and understand this form, let’s first take a look at few important points that you should know:

1. GSTR 3B needs to be separately filed for each GST registration number.
2. It needs to be filed online only in the common portal i.e. www.gst.gov.in, there is no any offline utility provided which can be filled and uploaded into the system. In the post-login mode, one can access it by going to Services > Returns > Returns Dashboard. After selecting the financial year and tax period, GSTR 3B, (if applicable), in the given period.
3. It is needed to be filed even if it is a nil return.
4. Once filed, the form shall be final and there is no provision for revision of the return once filed. Any revision has to be done through while filing of GSTR -1, GSTR -2, GSTR -3.
5. Upon generation of GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system will update the delta (difference) between GSTR 3B and GSTR 3 automatically. In case of an upward revision of liabilities, one will be liable to pay differential tax along with interest on the (differential) amount.
6. Refund cannot be claimed under GST-3B since invoice-wise details in form GSTR 1 must have to be submitted for the matching of invoices and for processing of the refund claim.
7. All migrated taxpayers need to furnish all the information required under REG- 26 so as to file GSTR-3B. Therefore, if the details of enrolment for registration are not fully or properly submitted, then such person may not be able to file the GSTR-3B return.
8. Composition Dealers are not required to file GSTR-3B. They will be required to file quarterly return only.
9. If there is any tax payable then payment of such tax is mandatory for the filing of form GSTR-3B. In other words, GSTR-3B return cannot be filed without full payment of the tax due.

Why is it important to file GSTR 3B?

1. Since GSTR 3B is temporary in nature, some businesses might think that it’s not that important. However, you should know following things:
2. Not filing GSTR-3B may invite the penalty of 18% per year
3. GSTR 3B is required for preparation of filing further GST returns.
4. Same data can be used to file GSTR 1 .

3. GSTR 3B Format

GSTIN : This is a PAN India based 15 digit Goods and Services Taxpayer Identification Number (GSTIN) for each taxpayer. This column will be auto filled.

Name of the registered person : It will be auto filled at the time of logging into the common GST Portal. Trade Name, if any, should be separately provided.

Details of Outward supplies and inward supplies liable to reverse charge (Part A) : Here you need to capture the total taxable value (both intrastate and interstate) along with the total tax (IGST, CGST, SGST/UTGST) as applicable:

• Outward Taxable Supplies other Zero Rate, Nil Rate and Exempted
• Outward Taxable Supplies (Zero Rated)
• Outward Supplies towards Nil Rated and Exempted
• Inward Supplies liable to be paid on reverse charge basis
• Non GST Outward Supplies

Details of Inter‐State supplies made to unregistered persons, composition dealer, and UIN holders (Part B) : This table shows the bifurcation of the interstate outward supplies made to Unregistered Persons, Composition Dealers, and UIN Holders. These details need to be captured State‐wise/ Union‐Territory‐wise total with taxable value and total IGST levied on these supplies.

Details of eligible Input Tax Credit : Here in this table the summary of your eligible ITC available and the ITC reversals made by you to arrive at the Net ITC is captured.

ITC Availability (whether in Full or Part): Mention the break‐up of inward supplies on which ITC is availed. The following are the details you need to capture:

1. Import of Goods : The Tax credit of IGST paid on import of goods.
2. Import of Service : The Tax credit of IGST paid on import of services.

Inward supplies liable to reverse charge: Mention the GST paid on inward supplies which are liable for a reverse charge as, sponsorship services, and purchase from URD etc. other than import of goods or services. To know more, read inward supplies liable to reverse the charge.

1. Inward Supplies from ISD : Input tax credit received from Input Service Distributor (ISD).
2. All other ITC: Apart from above, ITC of other inward supplies has to be captured here.

Details of Input Tax credit to be reversed : Mention the ITC reversible on the usage of inputs/input services/capital goods used for the non‐business purpose, or partly used for exempt supplies. Also, if the depreciation is claimed on tax component of capital goods, and plant & machinery, then also the ITC will not be allowed.

The ITC available as reported when reduced by the amount of ITC to be revered as reported under this table, the resultant balance will be called your eligible ITC.

Details of Ineligible ITC : GST paid on inward supplies listed in the negative list is not eligible for Input Tax Credit (ITC). The details of GST paid on such supplies are recorded in this table. To know more, see the list of supplies ineligible for ITCIT

Details of exempt, nil‐rated and non‐GST inward supplies : Here you have been asked to give away the value of inward supplies pertaining to supply transactions with suppliers under composition scheme, nil rated and exempt supplies and Non GST supplies made during the tax period (for both inter state and intra state supplies carried out by you)

Payment of tax : In here you are required to declare the self-ascertained tax payable by you. This is based on the details of outward supplies and inwards supplies liable to be paid on reverse charge captured in Table No. 3 The tax-wise break-up of payment of tax by way of utilization of ITC and cash deposit needs to be provided.

TDS/TCS Credit : Here you are required to capture the details of TDS (Tax withheld by the Government establishment) and TCS (Tax withheld by E-commerce operator). However, these provisions are deferred from initial rollout of GST. Accordingly, TDS and TCS is not applicable till it is notified further.

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