Can the Taxpayer Reset GSTR-3B?

GSTR-3B is a summary return of the total outward supplies i.e. sales and total inward supplies i.e. purchases made during the month. Every dealer registered under the regular scheme of GST should file GSTR-3B on or before the 20th of next month. In case there are no business transactions, you must file a NIL GST Return. The taxpayer cannot Revise GSTR-3B. However, the taxpayer can reset GSTR-3B

The GST Council announced that ‘Reset GSTR-3B’ through which the status of ‘Submitted’ will change to ‘Yet to be Filed’, and the taxpayer can now edit details filled in the return.

To file GSTR-3B, there are the following stages.

  • Prepare,
  • Save,
  • Submit,
  • Payment of Tax and
  • File

If the taxpayer has filed the return, he cannot Revise GSTR-3B. However, if the taxpayer has submitted the return but not filed, he can reset it. Further, the taxpayer can use the option to reset GSTR-3B only once.

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Steps to Reset GSTR-3B

  1. Visit GST Portal

    Login to GST Portal using valid credentials

  2. Navigate to Services

    Click on Returns > Returns Dashboard

  3. Select the Financial Year and Period of filing

    Click on ‘PREPARE ONLINE’ under Monthly Return GSTR 3B

  4. Reset GSTR-3B option activated

    The status of the return is ‘Submitted’. The option to Reset GSTR3B is activate now.

  5. Click on Reset GSTR3B.

    As a result, a warning message that entries in E-Liability Ledger will be deleted and Input Tax Credit will be reversed will appear on the screen. Click on Yes.

  6. Success Message

    Success message that reset is successful will appear on the screen. Thus, the status of return changes to ‘Yet to be filed’.

  7. Make changes and submit again

    Make changes to the return and submit again. Also, do remember that this reset option was available only once.

Click on Preview to view the draft return. If you find any errors, make the necessary changes. It is advisable to preview the return before filing it.
Tip
Click on Preview to view the draft return. If you find any errors, make the necessary changes. It is advisable to preview the return before filing it.

FAQs

I was not able to file GSTR-3B within the prescribed date. Can I do it now?

Yes, but with payment of applicable interest and late fee. Late fee has been waived for the month of July only.

Who needs to file the GSTR 3B?

All normal taxpayers and casual taxpayers are required to file the GSTR 3B in addition to GSTR 3 every
time there is an extension of due dates of filing for GSTR 1 and GSTR 2.

From where can I file GSTR 3B?

GSTR 3B can be filed from the returns section of the GST Portal. In the post login mode, you 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 will be displayed

GSTR-3B : Process to file NIL Return

Every business registered as a Normal Taxpayer shall file GSTR 3B by the 20th of the subsequent month. In case there are no business transactions, you must file a GSTR-3B NIL Return. On 8th June 2020, the GST Department announced the facility of filing NIL GSTR-3B through an SMS.

NIL GSTR 3B can be filed if the taxpayer:

  • Has not made any Outward Supplies i.e. Sales
  • Does not want to claim any Input Tax Credit
  • Does not have any liability under the Reverse Charge Mechanism
  • Has no tax liability for any previous tax periods

Process to file GSTR-3B Nil Return through SMS

  • Step 1: Send SMS to 14409
    The taxpayer should send an SMS to the number 14409 from the registered mobile number. The message should be – NIL<space>3B<space>GSTIN number<space>Tax period in MMYYYY. Eg: NIL 3B 24XXXXXXXXXXXZC 052020.
  • Step 2: OTP Sent
    The taxpayer will receive a six-digit OTP valid for 30 mins from VD-GSTIND.
  • Step 3: Confirm NIL filing with OTP
    The taxpayer should then confirm the filing of NIL GSTR-3B by sending the following message – CNF<space>3B<Space>Code. Eg: CNF 3B 626262.
  • Step 4: Confirmation message with ARN
    The GST system sends a confirmation message on the filing of NIL GSTR-3B along with an ARN (Acknowledgement Reference Number).
  • Step 5: Track ARN
    Using the ARN, the taxpayer can track the status of GSTR-3B on the GST Portal by navigating to the option Services > Returns > Track Return.
If the taxpayer needs help, send an SMS to 14409 with message - HELP 3B
Tip
If the taxpayer needs help, send an SMS to 14409 with message - HELP 3B

Process to file GSTR-3B Nil Return on GST Portal

  1. Login to GST Portal

    Login to the GST Portal using valid username and password.

  2. Navigate to Services

    Click on Returns > Returns Dashboard.

  3. Select the Financial Year and Period of filing

    Click on ‘PREPARE ONLINE’ under Monthly Return GSTR 3B.

  4. Questionnaire

    A list of questions will appear on the screen. Select ‘Yes’ for option A ‘Do you want to file Nil return?’. Once you select Yes, all the other options are disabled.

  5. Download Draft GSTR-3B

    Click on Preview Draft GSTR-3B to download the draft return pdf.

  6. File GSTR-3B

    Select the checkbox. File the return using EVC or DSC.

  7. Success Message and ARN

    Once the return is filed, a success message and ARN i.e. Acknowledgement Reference Number will appear on the screen. A confirmation message with the ARN is sent to the registered email and mobile of the taxpayer. Click on Download Filed GSTR-3B to download the filed return pdf.

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FAQs

How do I file my GSTR-3B NIL Return late fee?

The fee for the late filing of the returns is Rs 25 per day for Central GST (CGST) and the same under State GST (SGST). However, those businesses who have to file returns but have ‘nil’ tax liability would have to pay a fine of Rs 10 under CGST law, and an equal amount under SGST law

Is it mandatory to file GSTR-3B NIL Return?

It is mandatory to file GSTR-3B irrespective of your turnover (even if it is NIL) every month if you are registered under the CGST Act, 2017. Section 39 of CGST Act, 2017 requires every registered person other than composition dealer to file monthly return.

What is the difference between GSTR 3 and GSTR 3B?

GSTR 3 which was previously issued by the GST council was further replaced by the GSTR 3B which is a consolidated monthly return filing form for the payment of the net liabilities. Thus GSTR 3B is a consolidated return form whereas GSTR 3 is a detailed form including sale/purchase details of the month.

GSTR 2A Reconciliation : Process, Mismatch, Action

Index

GSTR-2A is an auto-populated return in the buyer’s account on GST Portal. It displays information of the Input Tax Credit, TDS credit, and TCS credit based on the returns filed by the seller i.e. GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8. Further, GSTR-2A reflects the data of invoices uploaded by the seller while filing GSTR-1. Thus, it is important to match the data of Input Tax Credit claimed in GSTR-3B with that of Input Tax Credit reflected in GSTR-2A. This is called GSTR-2A Reconciliation.

Why is GSTR-2A Reconciliation important?

It is necessary to reconcile GSTR-2A for the following reasons:

  1. GST authorities have issued notices to many taxpayers for mismatch in GSTR-3B and GSTR-2A. These taxpayers should either pay the differential amount or respond to such notice. It is thus important to reconcile GSTR-2A to avoid such notices in future
  2. To ensure that the buyer has not missed recording entry of a purchase invoice or has not recorded a purchase invoice more than once
  3. It is important to rectify the error of the seller in filing GSTR-1 and error of the buyer in filing GSTR-3B
  4. To ensure that wrong input tax credit is not claimed by the buyer on the basis of a fake invoice

Process of GSTR-2A Reconciliation

  1. Download GSTR-2A

    The taxpayer can download GSTR-2A from his account on the GST Portal. You can refer the below article to understand the stepwise process to download GSTR-2A.

  2. Reconcile GSTR-2A with Purchases and take action for mismatch

    Match the input tax credit as per purchases in the books of accounts with the input tax credit as per GSTR-2A. Evaluate the reasons for mismatch and take action to reconcile the input tax credit. The taxpayer should then file GSTR-3B with the correct amount of input tax credit.

  3. Reconcile GSTR-2A with GSTR-3B and take action for mismatch

    If the GSTR-3B of the relevant period has already been filed, match the input tax credit as per GSTR-3B with the input tax credit as per GSTR-2A. Evaluate the reasons for mismatch and take action to reconcile the input tax credit.

Books of Accounts and GSTR-2A Mismatch

  Reason for mismatch Action to reconcile
ITC in GSTR-2A > ITC in Books The buyer has not reported a purchase invoice in his books of accounts The buyer should record the purchase invoice in his books of accounts
ITC in GSTR-2A > ITC in Books The seller has mistakenly reported the invoice in buyer’s name The seller should rectify his error while filing the sales return of next return period
ITC in GSTR-2A < ITC in Books The buyer has mistakenly reported a purchase invoice in his books of accounts The buyer should cancel the entry of purchase invoice from your books of accounts
ITC in GSTR-2A < ITC in Books The seller has not reported an invoice in his sales return The seller should report the invoice while filing the sales return of next return period

GSTR-3B and GSTR-2A Mismatch

  Reason for mismatch Action to reconcile
ITC in GSTR-2A > ITC in GSTR-3B * Seller has reported invoice in his sales return
* Buyer has not recorded the invoice in his books of accounts and has already filed the GSTR-3B of the return period without claiming the credit of this invoice
The buyer should claim the excess credit in the GSTR-3B of next return period
ITC in GSTR-2A > ITC in GSTR-3B * Seller has mistakenly reported the invoice in buyer’s name
* Buyer has not recorded the invoice in his books of accounts and has also not claimed input tax credit on it under GSTR-3B
The seller should rectify his error while filing the sales return of next return period
ITC in GSTR-2A < ITC in GSTR-3B The buyer has mistakenly reported a purchase invoice in his books of accounts and also claimed the input tax credit on the same while filing GSTR-3B The buyer should reverse the excess credit while filing GSTR-3B of the next return period
ITC in GSTR-2A < ITC in GSTR-3B * Seller has not reported an invoice in his sales return
* Buyer has claimed the input tax credit on the invoice while filing GSTR-3B
The seller should report the invoice while filing the sales return of next return period

FAQs

What if my supplier has not filed GSTR1 and invoices are not reflecting in my GSTR 2A?

If there is any mismatch in the actual input tax credit against the input tax credit in GSTR-2A, the buyer should intimate the seller. However, he cannot correct the seller’s mistake since it is an auto-populated return and cannot be edited.

Do I as a taxpayer have to file GSTR-2A?

No, you don’t have to file Form GSTR-2A. It is a read-only document provided with the record of all the sales from various suppliers in a given tax period. You can view or download GSTR-2A from your account on the GST Portal.

How does the process of GSTR-2A Reconciliation work?

1. Seller uploads data and files GST Return on the GST Portal
2. GSTR-2A in the buyer’s account gets auto-populated
3. Buyer views or downloads the GST Return
4. Buyer reconciles input tax credit in GSTR-2A with the input tax credit in GSTR-3B
5. The buyer takes action for mismatch in reconciliation by communicating with the seller

What is an Electronic Cash Ledger under GST?

The E-Cash or Electronic Cash Ledger under GST displays all the amounts deposited for payment of tax, interest, fee or penalty. It also reflects TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) since they are tax deposits of the taxpayer.

An E-Cash Ledger is like a digital wallet of the taxpayer. Taxpayer can deposit money into and utilize the balance for payment of liabilities. The payments options include NEFT, RTGS, Credit Card, Debit Card or Net Banking. The detailed report of money deposited and balance utilized can be viewed in the Electronic Cash Ledger available on the GST Portal.

Balance from E-Cash Ledger is utilized for:

  • Payment of Tax – If the balance in the E-Credit Ledger is insufficient to pay tax
  • Payment of Interest, Fee or Penalty – It should always be paid from e-cash ledger

While filing the monthly GSTR-3B, in Table 6.1 Payment of Tax, the credit balance and cash balance is auto-populated for the payment of Output Tax Liability.

Example

GST on Sales = Rs.20,000
Late Fee Payable = Rs.5,000
Balance in E-Credit Ledger = Rs.35,000

Solution

  Pay from E-Credit Ledger Pay from E-Cash Ledger
Output GST INR 20,000 NIL
Late Fee Not Allowed Deposit Cash to pay Late Fee of INR 5,000

Balance in E-Credit Ledger = Rs.15,000
Balance in E-Cash Ledger = Amount Deposited – Rs.5,000

How can I deposit money in Electronic Cash Ledger under GST?

  1. Login to GST Portal

    Log in to your account on GST Portal

  2. Navigate to Create Challan

    Taxpayer should create a Challan to make the payment. Each Challan has a unique CIN i.e. Challan Identification Number. Go to Services > Payment > Create Challan

  3. Select the Major Head and Minor Head

    Enter the amounts under correct Major Head (IGST, CGST, SGST / UTGST, Cess) and Minor Head (Tax, Interest, Penalty, Fee, Others)

  4. Payment of Challan

    Pay the challan using the appropriate payment option – E-payment, OTC, NEFT / RTGS [Read more – GST Challan Payment : Process to pay GST online]

  5. E-Cash Ledger updated

    Once the payment is made, CIN i.e. Challan identification Number is communicated to the GST system and the E-Cash Ledger is updated with the funds under specific heads.
    Note: Funds of one head cannot be utilized for payment of liability under the other head.

FAQs

Can anyone else view my Electronic Cash Ledger?

The following persons can view the Electronic Cash Ledger:
1. Taxpayer
2. Authorised Signatory of taxpayer
3. GST Practitioner of taxpayer
4. Jurisdictional Officer of taxpayer

How can a taxpayer view details of transactions in the Electronic Cash Ledger for a specific period?

To view the details of the transactions, the taxpayer can view the Electronic Cash Ledger for the required duration. The option is available on the landing page of the Electronic Cash Ledger.
A maximum of 6 months transactions can be viewed at a time.

How can the cash available in the Electronic Cash Ledger be utilised?

The amount available in the Electronic Cash Ledger can be utilized for payment of any liability for the respective major and minor heads. For example, liability for the tax under SGST can be utilized from the available amount of cash available under SGST only.

What is an Electronic Credit Ledger under GST?

An E-Credit Ledger or Electronic Credit Ledger under GST is the ledger where a taxpayer can view the input tax credit of GST claimed in GSTR-3B (on account of purchases and expenses). It is maintained on the GST Portal. Moreover, the balance in this ledger can be utilized for paying tax only and not for paying interest, late fee, penalty etc.

Electronic Credit Ledger under GST reflects:

  • Input Tax Credit of GST accumulated from purchases and expenses
  • Input Tax Credit of GST utilized for payment of output tax liability
  • Balance Input Tax Credit that can be utilized in future

The credit of Input GST from purchases and expenses can be used for paying Output GST on Sales.

  • If Input GST > Output GST, excess balance is reflected in E-Credit Ledger
  • If Input GST < Output GST, the difference amount is to be deducted from the E-Credit ledger else difference amount is to be paid by depositing cash in the E-Cash Ledger

While filing the monthly GSTR-3B, in Table 6.1 Payment of Tax, the credit balance and cash balance is auto-populated for the payment of Output Tax Liability.

How can I utilize balance of E-Credit Ledger?

To utilize the credit, the following rules must be considered:

  Output IGST Output CGST Output SGST Output Cess
IGST ITC        ①       ②      ③ X
CGST ITC      ②       ① X X
SGST ITC      ② X      ① X
Cess ITC X X X      ①

Example

ABC Pvt Ltd has to determine tax liability to file GSTR-3B for July 2018. Below are the details.

Particulars Amount (Rs.)
Input CGST 10,000
Output CGST 20,000
Input SGST 25,000
Output SGST 20,000
Input IGST 45,000
Output IGST 40,000
Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore
Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore

Solution

Particulars IGST CGST SGST
Tax Payable 40000 20000 20000
Input Tax Credit 45000 10000 25000
Gross Tax Liability 0 10000 0
Remaining ITC 5000 0 5000
IGST Credit used for CGST (5000) 5000 0
IGST Credit used for SGST 0 0 0
CGST Credit used for IGST 0 0 0
SGST Credit used for IGST 0 0 0
Net Tax Payable 0 5000 0
ITC carried forward 0 0 5000

FAQs

Is it necessary to claim refund of the excess amount available in the Electronic Credit Ledger?

No, the amount may continue to remain in the Electronic Credit Ledger and can be utilized for any future liability. A refund can only be claimed if Input Tax Credit has been accumulated due to the export of goods and/or services and/or due to the rate of tax on outward supplies being lower than inward supplies.

Can I download the E-Credit Ledger?

Yes. You can download and save the E-Credit ledger from your dashboard in PDF and CSV format on your local device.

How can a taxpayer check the available balance in the Electronic Credit Ledger?

A taxpayer can log in to the GST Portal. Go to Services > Ledgers > Electronic Credit Ledger.

File GSTR-3B on GST Portal

GSTR 3B is a summary GST Return with details of Outward supplies i.e. sales, input tax credit claimed on inward supplies i.e. purchases and expenses, and Payment of Tax. Every business registered as a Normal Taxpayer shall file GSTR-3B by 20th, 22nd or 24th of the subsequent month. In case, there are no business transactions, you must file a NIL GST Return.

Following are four steps to file GSTR-3B:

  • Prepare GSTR-3B
  • Save GSTR-3B
  • Payment of Tax
  • File GSTR-3B

You can prepare GSTR-3B in the following two ways:

  1. Prepare GSTR-3B Online on GST Portal
  2. Prepare GSTR 3B Offline through Offline Tool
GSTR-3B Filing for Regular Dealer
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How to file GSTR-3B? – Online on GST Portal

You can enter the data of sales and input tax credit, pay the tax and file the GST Return on GST Portal.

  1. Prepare GSTR-3B

    Login to your account on the GST Portal with valid username and password.

  2. Navigate to Services

    Click on Returns > Returns Dashboard.

  3. Select the Financial Year and Period of filing

    Click on ‘PREPARE ONLINE’ under Monthly Return GSTR-3B.

  4. Instructions Page

    Once you read the instructions, click OK to proceed.

  5. Questionnaire

    A list of questions to show the relevant sections of the GST Return is displayed. Fill in the answers with either ‘Yes’ or ‘No’ and click on ‘NEXT’.

  6. Enter details of Sales, Input Tax Credit, Interest etc

    Only the sections for which ‘YES’ was selected will be shown. Enter details of the relevant tax period in each of the sections displayed

  7. Payment of Tax

    Click on SAVE GSTR-3B. And click on PREVIEW DRAFT GSTR-3B to review the data entered.

  8. There are three tables displayed:

    (i) Electronic Cash Ledger with an outstanding balance that the taxpayer can utilise for paying tax, interest, penalty, or late fee.
    (ii) Electronic Credit Ledger with an outstanding balance that the taxpayer can utilise for paying tax.
    (iii) The Electronic Liability Ledger reflecting liability, tax paid by using Input Tax Credit and tax, penalty, late fee, and interest paid by using the cash balance.

  9. Set Off Tax Liability

    Once you click ‘MAKE PAYMENT / POST CREDIT TO LEDGER’ to pay off the tax liability, no changes can be made. Click ‘PROCEED TO FILE’ and you can file the return using two options:
    1. File GSTR3B with DSC – Use Digital Signature of the Authorised Signatory. It is mandatory in case of a Company and an LLP
    2. File GSTR3B with EVC – Use OTP sent on registered email and mobile number of the Authorised Signatory.

  10. Success message with ARN (Acknowledgment Reference Number)

    A confirmation message with ARN is sent to the registered email and mobile number and the status of the return on the dashboard is changed to FILED.

How to file GSTR-3B? – using Offline Tool

You can enter the data of sales and input tax credit in the excel utility, generate and upload the JSON file, pay the tax and file the GST Return on the GST Portal.

Steps to use GST Offline Tool

  • Download the latest GSTR-3B excel utility from the GST Portal.
  • To clear the data in the excel worksheet, click on ‘Clear All’.
  • Enter the basic details – GSTIN, Legal Name, Financial Year, and Month.
  • Enter details of the relevant tax period in each of the sections displayed as per the table below.

 

Details of Sales

Table Name

Details to be entered

3.1 Details of Outward Supplies and inward supplies liable to Reverse Charge

  • Taxable, Non-taxable and Non-GST Sales
  • Purchases and Expenses on which GST has been under reverse charge

3.2  Of the supplies shown in 3.1 (a), details of inter-state supplies made to unregistered persons, composition taxable person and UIN holders

  • Inter-state sales to persons not registered under GST
  • Inter-state sales to persons registered under Composition Scheme
  • Sales to UIN holders

Details of Purchases

Table Name

Details to be entered

4. Eligible ITC

5. Values of exempt, Nil-rated and non-GST inward supplies

  • Purchases from a composition dealer
  • Exempt and Nil-Rated purchases
  • Purchases not liable to GST

Interest & Late Fee

Table Name

Details to be entered

5.1 Interest & late fee payable

  • Enter Interest amount
  • Late Fee is auto-populated
  • Click on ‘Validate’. In case, there is a failure in validation, correct the errors as per error message displayed.
  • Once the validation is successful, click on ‘Generate file’ to generate the JSON file.

Steps to file on GST Portal

  • Log in to your account on the GST Portal using valid username and password.
  • Click on Services > Returns > Returns Dashboard.
  • Select the Financial Year and Period of filing.
  • Click on ‘PREPARE OFFLINE’ under Monthly Return GSTR-3B.
  • Upload the JSON file.
  • Click on SAVE GSTR-3B and click on PREVIEW DRAFT GSTR-3B to review the data entered.
  • There are three tables will appear on the screen:
    • Electronic Cash Ledger with an outstanding balance that the taxpayer can utilise for paying tax, interest, penalty, or late fee.
    • Electronic Credit Ledger with an outstanding balance that the taxpayer can utilise for paying tax.
    • The Electronic Liability Ledger reflecting liability, tax paid by using Input Tax Credit and tax, penalty, late fee, and interest paid by using the cash balance.
  • Once you click ‘MAKE PAYMENT / POST CREDIT TO LEDGER’ to pay off the tax liability, no changes can be made.
  • Click ‘PROCEED TO FILE’ and then you can file the return using two options:
    • File GSTR-3B with DSC – Use Digital Signature of the Authorised Signatory. It is mandatory in case of a Company and an LLP,
    • File GSTR-3B with EVC – Use OTP sent on registered email and mobile number of the Authorised Signatory.
  • A success message will appear on the screen with the ARN (Acknowledgment Reference Number). The system sends a confirmation message to the registered email and mobile number. The status of the return on the dashboard changes to ‘FILED’.

FAQs

Can I revise GSTR-3B?

It is not possible to revise GSTR 3B once filed. But Government has now allowed to ‘Reset GSTR 3B’ through which the status of ‘Submitted’ will be changed to ‘Yet to be Filed’, and all the details filled in the return will be available for editing.

How to file GSTR-3B NIL Return?

To file GSTR-3B NIL Return, follow these steps:
1. Login to your account on GST Portal
2. Go to Services > Returns > Returns Dashboard
3. Select the Financial Year and Filing Period
4. Click on Prepare Online
5. In the questionnaire displayed, select ‘Yes’ for the question Do you want to file NIL Return?
6. You can file GSTR-3B using DSC or EVC

There is no field for credit note, debit note, advances received etc. then how the data regarding that has to be filled?

In GSTR-3B, the taxpayer should report the Net Amount:
Value of Taxable Supplies = Value of Invoices + Value of Debit Notes – Value of Credit Notes + Value of Advances Received for which invoices have not been issued in the same month – Value of Advances adjusted against invoices.
So, suppose if any invoice is issued and further in respect of that invoice other documents like Credit Note, Debit Note, etc. are issued then the impact of those further issued documents has to be adjusted against the amount of invoice and the net amount has to be uploaded.

GSTR-3B – Format, Due Date, Late Fee

GSTR-3B is a summary return to be filed by a registered dealer on a monthly basis. It is a summary of the total outward supplies and total inward supplies made during the month. The taxpayer need not report invoice level information in this GST Return. Further, before filing GSTR 3B on GST Portal, the registered dealer must make the payment of tax based on GST charged on outward supplies and Input Tax Credit availed on inward supplies.

Index

GSTR-3B Format

This GST Return comprises of the following information and details:

  1. GSTIN i.e. GST Identification Number of the taxpayer
  2. The legal name of the business
  3. Return period i.e. the month for which the taxpayer files the return
  4. Details of outward supplies i.e. Sales:
    • Sales of taxable goods and services
    • Zero-rated sales i.e. exports, SEZ supplies, and deemed exports
    • Exempt sales and Nil-Rated sales
    • Non-GST sales i.e. sales not covered under the GST Act
  5. Details of inward supplies under reverse charge i.e. purchases on which taxpayer is liable to pay tax under the Reverse Charge Mechanism
  6. Interstate sales (sales outside the state) made to unregistered persons, composite dealers, and UIN holders
  7. Input Tax Credit to be claimed on purchases and imports
  8. Details of Exempt, Nil-Rated and Non-GST inward supplies i.e. purchases

Who should file GSTR-3B?

GSTR-3B must be filed by the traders registered under the regular scheme of GST registration. They should file GSTR-3B every month while for filing GSTR-1, the monthly scheme or quarterly scheme can be selected based on the turnover.

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The following persons need to opt for a special registration and thus cannot file GSTR-3B:

  1. Persons registered under the Composition Scheme (CMP-08 and GSTR-4)
  2. Non-Resident Taxpayers (GSTR-5)
  3. OIDAR Service Provider (GSTR-5A)
  4. TDS Deductor (GSTR-7)
  5. E-Commerce Operator (GSTR-8)
  6. Input Service Distributors (GSTR-6)

GSTR-3B Due Date

GSTR-3B must be filed on a monthly basis by a taxpayer who is registered under the regular scheme. Up to December 2019, due date to file GSTR-3B was on or before the 20th of the next month. For January 2020 to March 2020, the following are the revised due dates:

Aggregate Turnover State Due Date
Above INR 5 Cr in the previous FY All States 20th of next month
Upto Rs. 5 Cr Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu, and Dadra & Nagar Haveli, Puducherry, Andaman, and the Nicobar Islands, Lakshadweep 22nd of next month
Upto Rs. 5 Cr Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi 24th of next month

Late Fee for GSTR-3B

If the taxpayer does not file GSTR-3B on or before the due date, he is liable to pay a late fee for each day of delay. He is also liable to pay interest on the tax liability.

  • If there are no transactions in the return period, the taxpayer should file a NIL Return to avoid late fee and penalty
  • Late fee is calculated from the date after the due date up to the date of filing of the return
  • Late fee of the current return is payable when the taxpayer files GSTR-3B for the next return period
  • As per the Act, earlier the taxpayer was liable to pay a late fee of Rs.200 (CGST Rs.100 and SGST Rs.100) per day of delay. It was later reduced to:
GSTR  Description Period Late Fees
GSTR 3B Summary monthly return July Waived
GSTR 3B Summary monthly return August Waived
GSTR 3B Summary monthly return (Tax Payable > Nil) October onwards INR 50 per day
GSTR 3B Summary monthly return (Tax Payable = Nil) October onwards INR 20 per day

FAQs

Can the taxpayer revise GSTR-3B?

It is not possible to revise GSTR 3B once filed. But Government has now allowed to ‘Reset GSTR 3B’ through which the status of ‘Submitted’ will be changed to ‘Yet to be Filed’, and all the details filled in the return will be available for editing.

Can a Taxpayer claim Input Tax Credit of previous month in GSTR-3B of current month?

Yes. If the taxpayer has missed claiming Input Tax Credit for purchases or expenses made in the previous month, they can claim the ITC in later months. As per the GST Act, the last return to claim input tax credit is GSTR 3B of September month from the end of the financial year to which the purchase or expense pertains.

How do I reconcile GSTR-3B with GSTR-2A?

To reconcile GSTR-3B (summary return of inward and outward supplies) with GSTR-2A (auto-populated return from GSTR-1), follow these steps:
1. Download GSTR-2A from your account on GST Portal
2. Reconcile GSTR-2A with Purchases as per books and take action for mismatch
3. Reconcile GSTR-2A with input tax credit as per GSTR-3B and take action for mismatch

How can I download my e-filed GST Return on GST Portal?

A taxpayer can download GST Return efiled from his account on the GST Portal.

Follow these steps:

  1. Visit GST Portal

    Log in to the account on GST Portal

  2. Navigate to Services

    Click on Returns > View e-Filed Returns

  3. Financial Year – Select the Financial Year for which the GST Return was filed

    1. Return Filing Period – Select Annual, Quarterly or Monthly
    2. Period – Select the period for which return was filed
    3. Return Type – Select the GSTR Form that you want to download
    Alternatively, if you select the financial year and search, all the e-filed GST returns for that financial year would be displayed. You can select the specific GST Return that you want to download.

  4. You can view the Acknowledgment Number and Date of Filing of the GST Return

    To download the return, click on ‘VIEW’.

  5. The Review page of GST Return would be displayed

    Click on ‘Download Filed GSTR’ to download the GST Return in a PDF format.

FAQs

Can I view or download my previously e-filed GST returns?

Yes, you can view and download your e-filed returns by using the Services > Returns> View e-Files Returns service from the GST Portal. However, for certain returns like GSTR-1 and GSTR-2, only a summary report of the return will be viewable/downloadable.

How do I download GST offline tools?

Visit the GST Portal and go to the ‘Downloads’ section, click on ‘Offline Tools’ and then click on the ‘GST New Return Offline Tool (Beta)’ under the options available.
An option to download the tool will be highlighted. Click on ‘Download’

How do I view an e filed return on GST?

To view your e-filed return, perform the following steps:
Login to the GST Portal with valid credentials.
Click the Services > Returns> View e-Files Returns command.

Should I file a GST Return if I have no Sales?

Every person who is registered under GST having a valid GSTIN must file all the GST Return applicable to his business. File GST Returns even if there are no transactions in the business. If there are no sales or purchases, the taxpayer must file a NIL Return.

A taxpayer can file a NIL Return if all the following conditions are satisfied:

  • There are no outward supplies i.e. sales during the tax return period
  • There are no inward supplies i.e. purchases or expenses during the tax return period
  • Tax liability during the tax return period is Nil

What is the Due Date to file NIL Return under GST?

The taxpayer with no business transactions must keep in mind the GSTR Form to be filed and the due date of filing.

If you fall under the Regular Scheme

GSTR Form Frequency Description Due Date
GSTR-3B Monthly Summary Return with details of outward supplies, inward supplies and payment of tax 20th of next month
GSTR-1 Monthly Sales Return with details of outward supplies for business with aggregate turnover of more than Rs.1.5 Crore 11th of next month
GSTR-1 Quarterly Sales Return with details of outward supplies for business with aggregate turnover of upto Rs.1.5 Crore last date of next month from end of the quarter

If you fall under the Composition Scheme

GSTR Form Frequency Description Due Date
GSTR-4 Quarterly Return with details of outward supplies, inward supplies and payment of tax at a fixed rate 18th of next month from end of quarter

What are the consequences if GST Return is not filed ?

It is mandatory for every registered taxpayer to file GST Return. Taxpayers with no business transactions should file Nil Return within the due date.

Consequences for not filing a NIL Return:

  1. Late Fee of Rs.20 per day is charged from the due date of filing to the actual date of filing the return subject to a maximum late fee of Rs.10,000 per return.
  2. If the taxpayer does not file GST Return for a specific period, he cannot file GST Returns for subsequent periods too. Thus, the late fee would keep accumulating.
  3. There would be no interest liability in case of nil return since there would not be any tax liability.
  4. The taxpayer may receive a notice from the GST Department for non-filing of returns to which an appropriate response needs to be submitted.
  5. The taxpayer cannot apply for the cancellation of registration if he does not file all the returns.
I have a GST number, but I haven't filed a single NIL return yet. How can I save the penalties?
If you have a GST number, it is compulsory to file GST return even if there are no business transactions during the return period. Read more about ways to save penalty if you have failed to file return
Read Answer
I have a GST number, but I haven't filed a single NIL return yet. How can I save the penalties?
If you have a GST number, it is compulsory to file GST return even if there are no business transactions during the return period. Read more about ways to save penalty if you have failed to file return
Read Answer

The Late Fee and Interest Liability are auto-populated based on the date of filing of the return. The taxpayer can view them in the E-Liability Ledger on the GST Portal. He can file the return only once the late fees are paid.

FAQs

What happens if I don’t file my GST return?

If you don’t file any GST return then subsequent returns cannot be filed. For example, if the GSTR-2 return of April is not filed then the next return GSTR-3 and subsequent returns of May cannot be filed. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty

Can I file GST Return on my own?

Yes you can file your own returns on GST Portal.
GST return can be filed in different forms depending upon the nature of transaction and registration. Return Forms that are applicable for Normal Tax payers along with its Due Dates:
1. Monthly Details of Outward supplies in GSTR-1 by the 10th of next month.
2. Monthly details of Inward Supplies in GSTR-2 by the 15th of next month.
3. Monthly Filing of Return along with payment of tax due in GSTR-3 by the 20th of next month.
4. Annual Filing of Return in FORM GSTR-9 by 31st December of next financial year.

How to Claim Input Tax Credit?

Taxpayers registered under the regular scheme can claim the input tax credit on purchases and utilize them towards payment of output tax on sales. The Input Tax credit is deducted from the Output Tax Liability and the Net tax is paid to the government. The process of claiming and utilising tax credit comprises of filing the monthly GST Return i.e. GSTR-3B.

Steps to Claim Input Tax Credit

1. Prepare, Review and Submit GSTR-3B
GSTR-3B is the monthly return with a summary of sales and purchases made during the return period.
a. Prepare – Enter the data of sales, output GST, purchases and input GST
b. Review – Review the calculations of Output GST against Input GST
c. Submit – Submit the data on the GST Portal

2. E-Credit Ledger updated
Once the return is submitted, the amount of input tax credit from the purchases of the current month gets populated in the E-Credit Ledger

How to Utilise Input Tax Credit?

  1. Calculate Output Tax and Input Tax

    After submitting the return, the next step is to pay off the tax liability of the current month. The calculations are populated in the taxpayer’s account on the GST Portal.
    1. Output Tax Liability – The output GST payable on sales i.e. IGST, CGST, SGST, UTGST or Cess is calculated based on the sales data entered
    2. Input Tax Credit
    E-Credit Ledger – The screen displays the balance of input IGST, CGST, SGST, UTGST or Cess. It includes the input tax credit of purchases from the current month and input tax credit brought forward from earlier tax periods
    E-Cash Ledger – The screen displays the balance of cash deposited by payment of challan

  2. Apply rules for utilisation of Input Tax Credit

    1. IGST – Use ITC of IGST in the sequence of paying output IGST, output CGST and output SGST
    2. CGST – Use ITC of CGST in the sequence of paying output CGST and output IGST
    3. SGST – Use ITC of SGST in the sequence of paying output SGST and output IGST
    4. The ITC of CGST and ITC of SGST cannot be cross-utilised

  3. File Return and Carry forward Input Tax Credit

    After utilising the ITC, make payment of tax through a challan. The system would carry forward the remaining unutilised balance of ITC and use it for payment of taxes in returns of subsequent periods.

Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore
Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore


FAQs

Who can claim ITC?

Taxpayers registered under the regular scheme can claim the input tax credit on purchases and utilize them towards payment of output tax on sales. The Input Tax credit is deducted from the Output Tax Liability and the Net tax is paid to the government.

What are the Documents Required for Claiming ITC

To claim ITC following documents are required:
1. Invoice issued by the supplier of goods/services
2. The debit note issued by the supplier to the recipient (if any)
3. Bill of entry
4. An invoice issued under certain circumstances like the bill of supply issued instead of tax invoice if the amount is less than Rs 200 or in situations where the reverse charge is applicable as per GST law.
5. An invoice or credit note issued by the Input Service Distributor(ISD) as per the invoice rules under GST.
6. A bill of supply issued by the supplier of goods and services or both

Is ITC available on Capital Goods?

ITC is available for all capital goods under GST.
However, ITC is not available for:
1. Capital Goods used exclusively for making exempted goods
2. Capital Goods used exclusively for non-business purposes 
No ITC will be allowed if depreciation has been claimed on the tax component of any capital goods.