Do you want to know how to file GSTR-3B with 100% accuracy and 100% automation? If yes, then you are reading right article. This article has many eye openers hidden tips also that you might be missing. This will prevent you from future notices from department.
GSTR 3B filing, as per the GST laws, is a self-declared consolidated summary of all the inward and outward supplies done by the taxpayer in a month or a quarter.
GSTR-3B reconciliation has become essential as it helps in identifying the mismatches.
In this comprehensive article, we will be looking at the details of GSTR-3B form under GST, GSTR 3B late fees, GSTR 3B due dates and all such related information related to GSTR 3B return filing.
The government implemented some alterations to the GSTR-3B return format in July 2022, specifically modifying the process for reporting data in Table 3 and Table 4. Notification No. 14/2022 – Central Tax announced the changes in July, and the GSTN released the format for reporting data in Table 4 in September 2022. The Table 4 format of GSTR-3B has now been updated to provide a more comprehensive breakdown of GST Input Tax Credit (ITC) that is permitted and not permitted, reversed, as well as other ITC information.
This section explains the latest changes made to the Table 4 format and how taxpayers are required to report their ITC in GSTR-3B going forward.
What is GSTR 3B under GST? (GSTR 3B Meaning)
GSTR-3B is a consolidated return of inward & outward supplies that a taxpayer has to file. It’s a monthly self-declaration form that every GST registered person has to file along with the GSTR-1 & GSTR-2 forms.
A regular taxpayer must file GSTR-3B for each tax period (month or a quarter).
GSTR-3B gives a consolidated summary of all the taxpayer's tax liabilities for a month, and the same has to be filed in this GSTR-3B. In GSTR-3B, it is NOT mandatory to upload the invoices of your outward & inward supplies as they have been already furnished in GSTR1 form & other GSTR forms.
Following are some of the specific features of the Form GSTR-3B under GST:
To learn more on How to file GSTR-3B, visit our detailed blog that explains the GSTR 3B filing in a simplified manner.
Who should file GSTR-3B return?
GSTR-3B can be filed by any taxpayer eligible to file GSTR-1 & GSTR-2 & GSTR-3 forms.
The following categories of taxpayers are NOT eligible to file GSTR 3B under GST:
- An Input Service Distributor (ISD)
- Supplies classified as Online Information and Database Access or Retrieval Services (OIDAR in GST) when provided by a non-resident
- A non-resident taxable person
- Taxpayer registered under GST Composition scheme
- Taxpayer deducting Tax at source ( TDS under GST )as per Section-51
- Taxpayer collecting Tax at source ( TCS on GST ) as per Section-52
GSTR-3B filing Due Dates
Following are the GSTR-3B return filing due dates for various classes of taxpayers:
AAT in previous FY | GSTR-3B Due Date |
|---|---|
Greater than 5 Crore | Filing is done ‘Monthly’. 20th of every month for the preceding month |
Less than or equal to 5 Crore | 22nd of every month for normal category States/UT- Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Tamil Nadu Goa, Karnataka, Kerala, Telangana, Daman-Diu & Dadra and Nagar Haveli, Puducherry, Andaman, Nicobar Islands, or Lakshadweep 24th of every month for special category States/UT- Rajasthan, Himachal Pradesh, Uttarakhand, Punjab, Haryana, Uttar Pradesh, Tripura, Bihar, Arunachal Pradesh, Sikkim, Manipur, Nagaland, Mizoram, Assam, Jharkhand, Meghalaya, West Bengal, Odisha, Chandigarh, Delhi, Jammu and Kashmir, Ladakh |
Penalty for late filing of GST Return 3B
Late filing of the GSTR-3B return can attract a monetary penalty.
Hence, businesses are advised to file their returns before GSTR 3B Due Dates.
Incorrect filing of GSTR-3B can also be a reason for penalty and thus you need to avoid mistakes in GSTR 3B.
Particulars | Penalty for intra-state supplies | Penalty for inter-state supplies |
|---|---|---|
A person having zero returns for the respective tax period | Rs 20 per day | Rs 20 per day (under IGST) |
Other cases | Rs 50 per day | Rs 50 per day (under IGST) |
NOTE: Late filing of GSTR-3B can attract a penalty and interest of 18% per annum.
NOTE2: If a taxpayer pays the Tax before the deadline but files his GSTR-3B after the deadline, he will be charged with the penalty and the interest of 18 % per annum.
Maximum Late fee for GSTR 3B
The maximum late fee for GSTR 3B filing is restricted to Rs. 500 for Nil GSTR-3B filing and Rs. 2000 for other than Nil return filing.
If you want to learn more on How to file GSTR 3B Nil Return, visit our dedicated blog.
Table 4 of GSTR-3B | Contents
A. ITC Details reporting in Table 4
Table 4 in the GSTR-3B return shows a detailed breakdown of all information related to Input Tax Credit (ITC) for a specific return period. This includes ITC acquired from importing goods and services, capital goods, inward supplies subject to reverse charge, and ITC distributed by an Input Service Distributor (ISD), among others. It also provides data on ITC that is ineligible, ITC that needs to be reversed under various sections and rules of the Central Goods and Services Tax (CGST) Act and Rules, ITC that is unavailable, and ITC that has been reclaimed.
Accurately reporting the correct amount of ITC in this table is crucial as it determines the net tax liability and total GST owed to the government. Incorrect values could result in GST notices and penalties.
In order to understand the Electronic Credit Reversal & Reclaimed Statement, it is important to first go through and understand the newly amended Table 4 of return in Form GSTR-3B.
In the table shown below, explains the rectified ITC details reportingGSTR-3B section | Earlier | Now |
|---|---|---|
A | ITC available whether in full or part | |
1. | Import of Goods | Details will be auto-populated |
2. | Import of Service | Details to be filed up by the registered person |
3. | Inward supplies liable to reverse charge (except 1 or 2 above) | Details to be filed up by the registered person |
4. | Inward supplies from ISD | Details will be auto-populated |
5. | All other ITC | Details will be auto-populated |
B | ITC Reversed | |
1. | As per Rule 42 & 43 of CGST rules | Details of ITC reversal which cannot be reclaimed in future and details of ineligible ITC |
2. | Others | Details of ITC reversal which can be reclaimed in future |
C | Net ITC available (A)-(B) | |
D | Ineligible ITC | |
1. | ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period | Details of ITC reclaimed which was reversed earlier |
2. | Ineligible ITC under section 16(4) of the CGST Act and ITC restricted due to PoS provisions | Details will be auto-populated |
Important notes:
Notably, reclaimable input tax credit which is reversed in Table 4(B)(2) can be subsequently claimed in table 4(A)(5). The said reclaimed credit is also to be reflected in Table 4(D)(1).
Table 4B (1) is utilized for permanent reversals that cannot be recovered.
Instances of such reversals include:
- Rule 38 - The reversal of input tax credit (ITC) by a BFSI entity (banking or a financial institution)
- Rule 42 - The reversal of ITC due to the supply of exempted goods or services.
- Rule 43 - The reversal of ITC on capital goods due to the supply of exempted goods or services.
- Ineligible ITC under section 17(5) (blocked credit).
Table 4B (2) is utilized for permanent reversals that can be recovered later. Instances of such reversals include:
- Rule 37 - The reversal of ITC when the consideration is not paid to the supplier within 180 days.
- Section 16(2)(b) - Non-receipt of goods or services in the relevant tax period.
- Section 16(2)(c) - When the supplier has not paid the tax.
Table 4D (2) is used to display ITC that is marked ineligible in GSTR 2B. The instances of reversal include:
- When the state of the supplier and the place of supply (POS) are the same, but the recipient is in another state.
- When the purchaser is not eligible for ITC, and an invoice or debit note is issued for the supply of goods or services or both.
B. Table 3.1.1 to report supplies made through ECOs (E-commerce Operators)
The 45th meeting of the GST Council took place on September 17, 2021, which was followed by the issuance of Notification 17/2021. This notification categorizes "Restaurant Services" under Section 9(5) of the CGST Act, 2017, and states that if such services are provided through an E-commerce operator, the tax on these supplies would be paid by the operator. To comply with this notification, a new table 3.1.1 has been added to GSTR-3B. Taxpayers will now be required to furnish details of supplies made through an E-commerce operator, where the operator pays tax on a reverse charge basis.
To learn more on ‘GST on Restaurant Services’, click on the link provided.
C. Reporting of interstate supplies made to unregistered persons, Composition dealers or UIN holders
Table 3.2 in GSTR-3B requires the correct reporting of inter-state supplies made to unregistered persons, composition dealers, and UIN holders, categorized by place of supply, even if this information has already been included in Table 3.1 of GSTR-1.
However, currently, this information is not being accurately reported. To help registered persons, the portal auto-populates Table 3.2 based on the details provided in their GSTR-1.
D. Settlement & payment of outstanding taxes
Payment of taxes can be done by either of the following three alternatives:
- Electronic Credit Ledger
The balance in the electronic credit ledger can only be used for payment of output tax, not for interest, penalty, late fee, erroneous refund, or RCM liability.
- Electronic Cash Ledger
Electronic cash ledger balance can be utilised for making payments towards tax, interest, penalty, fees, erroneous refund, RCM liability, or any other amount payable under the GST Laws. The transfer of balance from the cash ledger is allowed for IGST or CGST between registrations with the same PAN, provided there are no unpaid liabilities.
- UPI and IMPS
Additionally, UPI and IMPS are accepted as additional modes of payment. The suspension status due to non-filing of returns for a specific period can be revoked on filing all previous returns if the registration has not been canceled. The Council meeting recommends placing a proposal for comprehensive changes in GSTR-3B in the public domain for seeking inputs/suggestions from stakeholders, which is yet to be done.
Electronic Credit Reversal & Reclaimed Statement and features
The government recently introduced Electronic Credit Reversal & Reclaimed Statement in order to facilitate the registered person to correctly and accurately report Input Tax Credit reversal [in Table 4(B)(2)] and reclaimed [in Table 4(D)(1) and Table 4(A)(5)]. The facility is made available from the return period of August 2023.
Key features of Electronic Credit Reversal & Reclaimed Statement
- Navigation path to report Input Tax Credit reversal balance
- Any of the following paths can be adopted
Login > Report ITC Reversal Opening Balance; or - Services > Ledger > Electronic Credit Reversal and Re-claimed Statement > Report ITC Reversal Opening Balance.
- Any of the following paths can be adopted
- Reporting of the opening balance of Input Tax Credit reversal –
The registered person needs to report the opening balance of the Input Tax Credit reversal by 30th November 2023. - Amendment facility available to the registered person in reporting of opening balance of Input Tax Credit reversal –
The registered person is given three opportunities to amend any mistakes in reporting of opening balance of Input Tax Credit reversal and such amendment is to be done by 31st December 2023. - Validation mechanism –
As and when the registered person attempts to reclaim excess Input Tax Credit in Table 4(D)(1) of form GSTR-3B, via the validation mechanism, a warning message will be triggered in the following manner –
Triggering of warning messages will start for :
Monthly taxpayers - Return period of August 2023
Quarterly taxpayers - Return period of July – September 2023
Input Tax Credit reversal opening balance and time limit
The registered person is given an option to report the opening balance of input tax credit reversal i.e. Input Tax Credit which had been reversed earlier but has not yet been reclaimed. The registered person needs to declare the said opening balance of input tax credit reversal until 30th November 2023 in the following manner
Month taxpayers : Until the return period of July 2023
Quarterly taxpayers : Until return period of April to June 2023
Notably, the registered person, until 30th November 2023, is given three opportunities for amendments. Thereafter, from 30th November 2023 till 31st December 2023 no fresh reporting will be permitted and only amendments will be allowed.
GSTR-3B vs GSTR-1: Reconciliation
GSTR 3B and GSTR 1 reconciliation is essential because GSTR-1 return CAN NOT be filed if your previous tax period’s GSTR-3B is NOT filed.
Hence, taxpayers must understand that the GSTR 3B and GSTR 1 reconciliation is essential.
Reconciliation between GSTR-3B and GSTR-1 is required because:
To learn more on ‘Issues of mismatches in GST returns', check out our detailed blog in the link provided.
Thus, GSTR-3B vs 2B is an important reconciliation for 100% GST compliance.
GST Reconciliation software is the best option for a flawless Reconciliation report generation which helps in identifying gaps in your returns and keeps your business 100% GST compliant.
GSTR-3B vs GSTR-2B Reconciliation
The supplier files his GSTR-1, and it is reflected under GSTR-2A and GSTR-2B of the recipient.
These are the periodic return filed by the taxpayer that covers all the details for that particular period,
Importance of GSTR-3B and GSTR-2A/2B Reconciliation
Thus, GSTR-3B vs 2B is an important reconciliation for 100% GST compliance.
GSTR-2B, GSTR-3B & GSTR 2A Reconciliation in Tally, is now possible with GSTHero's Tally connector. It seamlessly integrates your Tally ERP with the GST portal, allowing you to reconcile your GSTR-3B right from your existing Tally ERP.
GST ITC Reversal in GSTR-3B
Excess ITC claimed by the taxpayers can be reversed in the GSTR-3B return. Likewise, taxpayers can reverse the excessive ITC claimed in their GSTR-3B filing.
GST ITC Revresal is declared in GSTR-3B in the following way.
Taxpayers have to furnish the details of the ITC to be reversed in Table 4 (B) of Form GSTR-3B.
There are two sections in this table:
- As per Rule 42 & 43 of SGST/CGST Rules
- As per Rule 42 & 43, the ITC claimed on the inputs or purchases of products or services which are further used partly for business and partly for non-business purposes must be reversed.
- When input supplies include nil-rated supplies, exempt goods, then Input Tax Credit reversal is required.
- Input Tax Credit on the capital goods, which is further used for making exempt supplies, nil-rated supplies or taxable must be furnished. Out of this, the ITC on the goods which are NOT used for a business purpose must be 'Reversed'.
- Others
- In this section, the taxpayer must mention other ITCs that need to be reversed according to his purchase registers and books of accounts.
How to file nil GST return
The majority of the taxpayers presume that they do not need to file GSTR-3B for their NIL returns. That is when there are no inward supplies, outward supplies or availing of GST Input Tax Credit.
Taxpayers must note that NIL return filing has been made mandatory under GST. If GSTR-3B under GST is not filed for NIL returns attracts a penalty on a per-day basis.
NOTE: For the convenience of the taxpayers, the government has introduced an SMS facility to furnish your nil returns in the GSTR-3B form under GST.
Taxpayers can file their Nil GSTR-3B through SMS by sending their details on the number 14409.
Format is as - NIL [space] 3B [space] GSTIN [space] tax period in mmyyyy
Example: NIL 3B 0202ABABABABACXCX 1221
and send this SMS on 14409.
Hence, businesses must not fail in filing nil GSTR-3B returns.
Visit our detailed blog to learn more on How to file GST Nil return to understand the importance of Nil return filing and the penalties attracted on non-filing of Nil GST returns.
Common mistakes while GSTR-3B Filing
GSTR-3B cannot be amended once it is filed on the portal.
Hence businesses must take utmost care that GSTR-3B is filed with 100% accuracy and there are no mismatches left.
However, the taxpayers who use manual reconciliation for GSTR 3B filing tend o introduce errors in the GSTR-3B return.
This section has listed down major GSTR-3B mistakes that taxpayers make while GSTR-3B returns filing .
- Delayed filing of GSTR-3B or non-filing of GSTR-3B
- Non-filing of GSTR-3B for Nil returns
- Clerical mistakes while GSTR-3B filing
- Not mentioning Debit Notes & Credit Notes
- Incorrect furnishing of Export figures in GSTR-3B
- Furnishing details of ITC for Normal Purchases
To learn more on ‘How to avoid GSTR 3B mistakes', check out our detailed blog in the link provided.
Is GSTR-3B return monthly or quarterly?
Who should file their GSTR-3B return monthly?
All the taxpayers eligible for GSTR-3B filing can file their GSTR-3B every month.
The taxpayers opting for QRMP Scheme are NOT required to file monthly GSTR-3B return.
GSTR 3B Due date (For Monthly Filers)
Category of taxpayer | Filing Frequency | GSTR 3B due date |
|---|---|---|
A normal taxpayer with an annual aggregate turnover MORE than Rs 5 Cr. | Monthly | 20th of the succeeding month |
Small taxpayers with turnover UPTO Rs 5 Cr. (Not opting for QRMP Scheme) | Monthly | 20th of the succeeding month |
Who should file Quarterly GSTR-3B?
- As per Notification No. 81/2020-Central Tax dated 10-11-2020 and Notification No. 84/2020-Central Tax dated 10-11-2020, the government has given an option to the businesses whose annual aggregate is less than 5 Cr. to file their GSTR-3B quarterly.
Hence, small businesses with an annual aggregate turnover of less than 5 Crore can opt for Quarterly Return Monthly Payment (QRMP Scheme under GST).
GSTR 3B Due dates (For Quarterly Filers)
Category of taxpayer | For states of | GSTR 3B due date | Payment of taxon |
|---|---|---|---|
Small taxpayers with turnover UPTO Rs 5 Cr. (Opting for QRMP Scheme) | Chhattisgarh, Madhya Pradesh, Gujarat, Dadra and Nagar Haveli, Daman and Diu, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh | 22nd of the month following the end of the quarter | For first two months of quarter: 25th of the following month |
Small taxpayers with turnover UPTO Rs 5 Cr. (Opting for QRMP Scheme) | Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Mizoram, Manipur, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha | 22nd of the month following the end of the quarter | For first 2 months of quarter: 25th of the next month |
Can I get a GST Notice for inaccurate GST return filing?
Mismatches between your GSTR-1 return and GSTR-3B is the most common reason to attract GST notices.
Delayed filing of GSTR-1 return and GSTR-3B for ix consecutive months can also attract a GST notice.
Notice specific to defaulting on GSTR-3B filing
GST Notice GSTR 3A is issued to the taxpayer for defaulting on GSTR-3B filing process.
GSTR 3A notice – Reply Format
On receiving the GSTR-3A, taxpayers have to file the defaulted GST return filing within 15 days from the date of issuing the notice.
The pending GST returns have to be filed along with the GSTR 3B late fees and the interest (as applicable).
Type of return | GSTR 3B Late Fees | Maximum GSTR 3B late Fees |
|---|---|---|
Annual returns | Rs. 200 per day | 0.25% of the turnover in that state |
Other returns | Rs. 50 per day | Rs. 5000 |
What will happen if returns are NOT filed even after the issuance of the GSTR-3A notice?
- As per section 62 of the CGST Act, 2017, ‘best judgment assessment’ would be done.
- The assessing officer shall scrutinize the tax liability as per the information furnished by the concerned GST officer.
To be 100% compliant with the GST new rules and avoid GST Notices, taxpayers are advised to use an automated reconciliation tool like GSTHero.
Benefits of an automated approach in GSTR-3B reconciliation
- Saves time & manual efforts
- 100% accurate data reconciliation
- No compliance issues
- Easy integration with your existing ERP
FAQs on GSTR 3B return filing
No, The current GST laws DO NOT allow revising the GSTR 3B return once filed.
- Yes, The government has provided a provision for auto-population of GSTR-1 and GSTR-2B values into your GSTR-3B return.
- Field values in Tables 3.1 & 3.2 of FORM GSTR-3B are auto-populated from your GSTR-1.
- ITC details and ITC reversal details are auto-populated in GSTR-3B from your GSTR 2B statement.
- Taxpayers opting for Composition Scheme under GST DO NOT have to file a GSTR-3B return.
- To learn more on ‘GST Composition Scheme’ read our detailed blog here.
Conclusion
This article covers all the significant details of the GSTR-3B form under GST. We will be updating this thread with more insightful information.
So stay tuned with GSTHero.
Until the next time….
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