The implementation of GST has transformed the way individuals and businesses pay taxes. However, there are still various aspects of GST that people are not entirely familiar with, such as filing the GSTR-3B return.
What is GSTR-3B?
The GSTR-3B is a joint summary of the return of inward and outward supplies. The Government of India has introduced this return to relax the requirements for businesses. In other words, taxpayers file the GSTR-3B return every month to disclose the supplies made during the month along with the GST paid, seek tax credit claims and reverse charges on specific purchases.
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When do you need to file the GSTR-3B return?
You must file the GSTR-3B return of a particular month by the 20th day of the next month. For example, you should file the GSTR-3B for April by the 20th of May.
1. Prerequisites for GSTR 3B Filing
Businesses required to file the monthly returns GSTR-1, GSTR-2, and GSTR-3 are liable to file GSTR-3B. You may submit the GSTR-3B online using the GSTN portal. You can pay the tax online or in cash at authorized banks.
To pay online, you will need either of the following:
- Digital Signature Certificate
- OTP from the registered mobile number to verify the return using an Electronic Verification Code (EVC)
- Aadhar-based e-sign
Who Needs to file GSTR-3B Return?
But for a handful of exceptions, all businesses registered under the GST scheme are required to file the GSTR-3B. The exceptions are-
- Composition Dealers
- Input Supply Distributors
- Suppliers of Online Information
- Non-Resident Taxable Individuals
- Businesses providing online database access and retrieval services (Example: Selling e-books or online gaming)
2. Filing GSTR-3B
You must file the GSTR-3B return for every GSTIN you have. If your business has operations in other states and they have their respective GSTINs, you will have to file an individual return for each such GSTIN.
The GSTR-3B form may look complicated at first glance, but filling the GSTR-3B online is more straightforward than one might think.
Also, Read: How to Calculate & Claim GST Refund?
3. Preparing to File Your GSTR-3B Return
The GSTR-3B form does not need you to provide invoice-level information or figures from every sale. You just need to fill out the total amounts for each category:
3.1 Outward Supplies and Inward Supplies That Are Liable to Reverse Charge
Outward taxable supplies excluding zero-rated, NIL rated and exempted ones
- Zero-rated outward taxable supplies
- NIL rated and exempted outward taxable supplies
- Inward supplies liable to reverse charge
- Non-GST outward supplies
3.2 From 3.1(a), details of Inter-State Supplies made to the following
- Unregistered persons
- Composition taxable persons
- Unique Identification Number (UIN) holders
4. Eligible ITC
(A) ITC Available (Full or in part) on
- Imported goods
- Imported Services
- Inward supplies liable to reverse charge excluding imported goods and services
- Inward supplies from ISD (Input Service Distributor)
- Any Other ITC
(B) ITC Reversed
- As per CGST/SGST Rules 42 and 43
- Any other reversed ITC in your books
(C) Net ITC Available: [4 (A)-4 (B)]
(D) Ineligible ITC
- As per section 17(5) of CGST/SGST Act
5. Exempt/Nil-Rated/Non-GST Inward Supplies
- Composition Scheme/Exempt/NIL Rated Suppliers
- Non-GST Inward Supply
6. Payment of Tax
- Integrated Tax
- Central Tax
- State/UT Tax
Where to file your GSTR-3B form?
You can pay your tax liability in cash at an authorized bank via challans. However, you cannot make a payment of more than INR 10000 per challan. Alternatively, you can file the GSTR-3B through the GST portal and pay online.
How to file GSTR-3B online?
Step 1: You must log in to the GST Portal.
Step 2: Locate the ‘Services’ tab. From the drop-down menu, click on ‘Returns’. Then, select ‘Returns Dashboard’.
Step 3: You will find yourself on the ‘File Returns’ page. Select the ‘Financial Year’ and the ‘Return Filing Period’ from the drop-down list. To go on, click on ‘SEARCH’.
Step 4: Locate the tile titled ‘Monthly Return GSTR-3B’ and click on ‘PREPARE ONLINE’.
Step 5: Enter the values for each section. You must also input the total amounts for each head. If Interest and Late Fees are applicable, you must enter that too.
Step 6: Click ‘SAVE GSTR-3B’ at the foot of the page. When it is saved successfully, you will find a message on top of the page.
Step 7: Click the ‘SUBMIT’ button at the bottom of the page to complete the submission of your finalized return. Again, you will see a success message at the top of the page. Note that once you ‘SUBMIT’ the return, you will not be able to make any changes to the data. This also triggers the updation of the ITC and Liability Ledger. The GSTR-3B will change to ‘Submitted’ on the top-right corner of the page.
Step 8: Scroll further down the page and click the ‘Payment of Tax’ tile. You must now offset the liability and pay the taxes.
Step 9: Select ‘CHECK BALANCE’ to review your credit balance. Select ‘OK’. You will go back to the previous page.
Step 10: Here, include the amount of credit from the available credit under the separate heads you want to use to pay off your tax liability. Strictly adhere to the utilization principles for credit, else the system will not permit the offset. Click ‘OFFSET LIABILITY’ You will receive a confirmation message. Click ‘OK’.
Step 11: Select the checkbox adjoining the declaration at the bottom of the page. Select the authorized signatory from the ‘Authorized Signatory’ drop-down box below it. Select one from the two options- ‘FILE GSTR-3B WITH DSC’ or ‘FILE GSTR-3B WITH EVC’.
Step 12: A ‘Warning’ message will pop up. Select ‘PROCEED’.
Step 13: You will find a message with confirmation information on your screen. Note the information and click ‘OK’. The GSTR-3B filing status will now appear as ‘Filed’. Select ‘VIEW GSTR-3B’ to view the return.
Filing the GSTR-3B return simply boils down to entering accurate information in the correct place. Gather all the information you need beforehand. You may even use accounting software to prepare this financial information before you file the return.