GST

GSTR-3B Filing on GST Portal – Step-by-Step Return Filing Procedure

GSTR-3B Filing on GST Portal

With the advent of GST, various changes have been made in the tax regime. Apart from unifying a myriad of indirect taxes, various new compliances were introduced. The authorities have formulated various forms to make the tax filing process even more seamless and straightforward for taxpayers. These forms are required to be filed by taxpayers within the stipulated time to avoid penalties or any adverse consequences. One such form is GSTR-3B, which is to be filed to declare the summary tax liabilities for a particular tax period. In this article, we will discuss how to file GSTR-3B and what are the procedural technicalities involved in filing this form.

GSTR-3B

GSTR-3B is a monthly return required to be filed by the registered taxpayer along with GSTR-1 and GSTR-2 Forms. It is a simplified return filed in order to declare the summary tax liabilities of a particular period. It is a mandatory requirement which is to be met even if there have been no business transactions during that particular period. In such a case, a Nil GSTR-3B is to be filed. However, there are a few entities that have been exempted from this mandatory compliance, which are as follows:

  • Input Service Distributors & Composition Dealers
  • Suppliers of Online Information Database Access and Retrieval Services (OIDAR)
  • Non-Resident Taxable Person.

Apart from the above-mentioned entities, GSTR-3B must be submitted by any taxpayer who is liable to file monthly returns. It is noteworthy that the government has mandated that GSTR-3B is to be filed by the registered taxpayers by the 20th of the succeeding month, i.e. the GSTR-3B for the month of October is to be filed by the 20th of November.

Furthermore, the government of India has relaxed the norms for businesses that have an aggregate turnover of less than Rs 5 crores by allowing them to file GSTR-3B on a quarterly basis, and this information will be auto-populated from GSTR-3B while filing GSTR-1.

Step-by-Step Guide to File GSTR-3B

In order to file GSTR-3B, the taxpayer may undertake the following steps:

  • Log in to your GST Portal by providing your credentials.
  • Navigate to “Services” > “Returns” > “Returns Dashboard”
  • You will be displayed on the “File Returns” page. Choose the Financial Year, Quarter, and Period for which you are opting to file the return and click on “Search”.
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At this point, it is noteworthy that if you choose to file the return quarterly, you will be required to file GSTR-3B for the last month of the quarter. If you end up selecting the first or the second month of the quarter, then the form GSTR-3B tile will not be operational.

  • A comprehensive file returns page will be displayed, showing the due date for filing the return. You may click on the “Prepare Online” option in the Form GSTR-3B tile.
  • Next, a list of questions will be displayed to you, which you are required to answer as applicable.
  • In case you wish to auto-populate the information from the form GSTR-1 or GSTR-2B, then an advisory page will be displayed giving the details of the information so auto-populated. Select “Close” to proceed further.

In case no business transaction has taken place during the taxation period, you can also file a Nil Return, which basically means you have not received any goods or services and thus have no outstanding tax liability for this particular period. In order to file a Nil Return:

  • Choose “yes” for Option A and proceed to “Next”.
  • A Preview draft generated by the system will be displayed to you. Carefully go through it and File GSTR-3B.
  • You may simply download the return so filed.

The next step involves filing Form GSTR-3B: Monthly Return Page, for which:

  • After the Form GSTR-3B monthly return page is shown, navigate to the “system generated GSTR-3B” option to download the details from the GSTR-1 and GSTR-2B in GSTR-3B.
  • In case there is a discrepancy, you are even allowed to edit the information that is auto-populated from these forms without any constraint. This auto-populated information is only to assist the taxpayers in the return filing process; the taxpayer is allowed, rather than expected, to file correct information.
  • As a next step, you will be displayed various tiles showing tables to enter the required information. Simply click on the tile to fill in the requisite information for the relevant fiscal period as follows:
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1.Tax on outward and reverse charge inward suppliesIncludes an overview of outward supplies and inward supplies that are subject to reverse charge and tax liability.
2.Inter-State SuppliesIncludes information relating to inter-state supplies to unregistered or composite taxable persons, etc., entered according to Place of Supply (POS).
3.Eligible ITCIncludes information relating to eligible ITC claimed or Reversal of ITC, and even ineligible input tax credits.
4.Exempt, Nil, and Non-GST Inward SuppliesPertains to details of exempt, Nil, and non-GST inward supplies, whether intra-state or inter-state supply.
5.Interest and Late FeeDetails of Interest and Late Fee under each tax head is to be provided here.
6.Payment of TaxDetails of payment of taxes, interest, etc., are to be provided here.

It is noteworthy here that as a taxpayer, you can “Add” or “Delete” to make changes or modifications to any tile, and once the final data has been provided by you on a tile, click “confirm” to ensure submission.

  • After adding all the relevant information, select “Save GST-3B”, showing at the bottom of the page in order to save the data entered. You may later come back to edit the same if required.
  • Once you have saved the entire data and you are sure about the correctness of the same, Click on “Submit” to successfully complete the submission of form GSTR-3B. Pots this, no changes will be allowed to be made.
  • In order to view the draft GSTR-3B, navigate to the bottom of the page and click on “Preview Draft GSTR-3B”.

After the successful submission of the GSTR-3B, your payment button will also be activated.

  • In order to make the payment, click on the “Payment of Tax” tile. The outstanding liability automatically gets updated in the ledgers and is displayed in the “Tax Payable” column of this section, along with the credits available.
  • In case the taxpayer wants to check the balance before making the payment, that can be done by clicking on the “Check Balance” option.
  • In case you file your return quarterly, you can assess the payments made during the quarter using the “Payment made in Quarter” option. The ITC available as of the date is also shown to the taxpayer. You may provide the amount of credit to be used from the available credits to pay off the liabilities.
  • The taxpayer can then click on “Make Payment/Post Credit Ledger” to pay off the liabilities or to claim credit in case there is no outstanding liability.
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In case you do not have sufficient balance in the Electronic Cash Ledger 1:

  • An auto-generated message will ask if you want to create a challan. Select “Yes”, and a create challan page will be displayed.
  • Choose the payment mode and click on “Generate Challan,” and your challan will eventually be generated.
  • Select “Proceed to file,” and after ensuring everything is correct, in the end, you are simply required to accept the declaration, which you must read carefully by choosing the authorized signatory and then click “File GSTR-3B with DSC or EVC accordingly.
  • If you choose to opt for File GSTR-3B with DSC, click on “Proceed,” select the certificate and select “Sign”. However, if you opt for File GSTR-3B with EVC, an OTP will be sent to your registered email address and mobile number; enter those and select “Verify”.
  • Simply click on “OK” at the end to submit your GSTR-3B successfully. You may download the form submitted to view the same and save it for future reference.

Conclusion

Under the GST regime, every registered taxpayer, other than those exempted, is required to provide the overall details of outward and inward supplies of goods and services, ITC availed, Tax payable, etc. All this information is to be provided periodically online on the GST Common Portal in the form GSTR-3B. The taxpayer must declare the sales and purchases made during the tax period, in this form, correctly as it decides the overall tax liability. These procedures are not as complicated as they may seem, but if you are confused about which form to fill out and even if you are clear on that part if you still feel overwhelmed with all the compliances and regulations, you may choose to seek professional help and expert advice. If you are a company owner or a business that is unsure about GST, feel free to approach the GST professionals at Enterslice for a seamless experience.

FAQs

  1. How many ways can you submit GSTR-3B?

    GSTR-3B can be submitted either online or offline.

  2. Can GSTR-3B be reset?

    GSTR-3B, once filed, cannot be revised; however, recently, the Central Board of Indirect Tax and Customs (CBIC) enabled the reset option, which has allowed to reset the GSTR-3B.

  3. Is it mandatory to file GSTR-3B monthly?

    Though GSTR-3B is a monthly return, QRMP (Quarterly Returns with Monthly Payment) taxpayers can opt to file it quarterly.

  4. What happens if GSTR-3B is not filed?

    The failure to file GSTR-3B may result in the levying of late fees.

References

  1. https://tutorial.gst.gov.in/userguide/ledgers/Electronic_Cash_Ledger.htm

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