GST Returns

All you need to know about Filing Form GSTR 3B

With the introduction of GST in 2017, various GST forms have also been introduced. GST Return form has to be filed by all registered individuals, traders, organizations etc. Details regarding the sales and purchase of goods and services and the tax paid/collected are provided by filing GSTR. On the basis of this, the tax authority computes the tax liability. Among all GSTR forms, filing form GSTR 3B is one of the most important one. Let’s discuss about it. 

What is GSTR 3B?

It is a monthly self-declaration which is required to be filed by a registered GST dealer with GSTR 1 and 2 return form. GSTR 3B declares summary GST liabilities for a tax period.

Some important points to be noted while filing Form GSTR 3B are as follows:

• A separate GSTR 3B should be filed for every GSTIN;
• A GSTR 3B if filed once cannot be revised/amended;
• The GST liability is required to be paid on or prior to the date of filing GSTR 3B, earlier than its due date;
• It should be compulsorily filed even in case of nil liability.

Who should be filing Form GSTR 3B?

Every taxpayer, including the ones with nil return, should file this return. However, the following registrants are not required to file GSTR 3B:

• Those taxpayers who are registered under the Composition Scheme;
• Input Service Distributors;
• Non-resident suppliers of OIDAR^[1] (Online Information Database Access & Retrieval Service) services;
• Non-resident taxable persons.

How to file Form GSTR 3B?

The procedure to file this form is as follows:

• Log in to the GST portal and on the homepage you will find the return filing status;
• Go to services>Returns> Returns Dashboard;
• It will show the file return page. You need to select the financial year and the return filing period for which you seek to file the return. Click on search;
• Click prepare online button on monthly return GSTR 3B tile;
• Answer the list of questions and click next;
• Enter values in every tile displayed. You are required to enter totals under every head. Fill in interest and late fee, in case there’s any;
• Once all details are entered in, click on the save GSTR 3B button at the bottom of the page. You may also click on save GSTR 3B button at the main page to save the data and come back later for editing;
• When all details are saved, click on the submit button to submit the return;
• Once the return is submitted you can proceed for payment;
• From the authorised signatory drop down list, select the authorised signatory. You need to click on File GSTR 3B with DSC or File GSTR 3B with EVC;
• Click on proceed.

Format of this GSTR

This form is divided into the following sections:

Section- 1	Questionnaire related to the business activities and tax liabilities for the present tax period.
Section- 2	A box displaying GSTR related information, including Return status.
Section- 3.1	A box to fill in details of tax on outward and inward supplies liable to reverse charge.
Section- 3.2	Interstate supplies (It involves supplies made to unregistered persons, composition taxable persons, UIN holders.)
Section- 4	Details related to eligible Input Tax Credit.
Section- 5.1	Exempt, nil & non-GST inward supplies.
Section- 5.2	Interest and Late Fee.
Section- 6.1	Tax Payment.

Due dates of filing Form GSTR 3B

The new due date for filing this form is in staggered form-

SL No.	Class of registered persons who opted for	With principal place of business in the state/UT of	Due date from Jan, 2021 onwards
1	Monthly filing of GSTR 3B	All states and Union Territories	20th of the following month
2	Quarterly filing of GSTR 3B	Chattisgarh, MP, Gujarat, Maharashtra, Karnataka, Kerala, Goa, TN, Telangana, AP, Daman and Diu, Dadra Nagar Haveli, Andaman & Nicobar Islands, Puducherry, Lakshwadeep	22nd of the month following quarter
		HP, Punjab, Uttrakhand, Haryana, UP, Rajasthan, Sikkim, Bihar, Arunachal Pradesh, Nagaland, Mizoram, Tripura, Manipur, Meghalaya, Assam, WB, Jharkhand, Orissa, J&K, Ladakh, Delhi, Chandigarh.	24th of the month following quarter

Filing Form GSTR 3B: Late Fee and Penalty

In case of non-filing or late filing of GSTR 3B, late fees and penalty shall be imposed. The late fee shall enhance day by day until it reaches the maximum limit. The fee will be added to the following months’ return. You cannot edit or proceed to file the return unless you pay the late fee.

As of now, the maximum late fee is capped at 500 rupees in case you don’t have any tax liability and at 1000 rupees in case of tax liability. However, this waiver is available only if the pending return is filed on or before the end of August 2021.

From June 2021 onwards, the late fee is levied and capped at:

• Rs 50 per day of delay;
• Rs 20 per day of delay in case of taxpayers having no tax liability for the month.

If the GST dues are not paid within the due date, then interest at the rate of 18% per annum shall be payable on the amount of outstanding tax to be paid. Therefore taxpayers should pay taxes and file this form before the deadline. If the tax is paid within the due date, but the return form is filed after the deadline, then late fees and interest shall apply.

Comparison of GSTR 3B vs GSTR 2A and GSTR 2B

Reconciliation of Form GSTR 2A and GSTR 2B with GSTR 3B is required to avoid getting notices because of excess input tax credit claims in GSTR 3B and to be informed if any real input tax credit is missed out on and to ask the supplier to upload the invoice details in GSTR 1, if not uploaded and to stay GST compliant and to improve the GST compliance rating.

Comparison of GSTR 3B vs GSTR 1

Reconciliation of GSTR 1 with GSTR 3B is required to avoid paying interests and penalties due to short tax payment and to know if any invoice is missed out on, and to allow the recipient to claim proper input tax credit based on his GSTR 2A and GSTR 2B and to stay GST compliant and to improve the GST compliance rating.

Conclusion

You are hereby advised to make GSTR filing on time to avoid paying late fee and interests. In case you have any doubt regarding which form to file and when to file, then you may contact a GST professional firm that will guide you through the entire process of filing form GSTR 3B or any other GSTR.

Read our article:What are the ramifications of not filing Form GSTR 3B?