GSTR filing can be complicated; with the many forms and different due dates. If you’ve ever wondered what GSTR 3B is all about, this article is for you.
What is GSTR 3B
GSTR 3B is a self-declaration GST return form that every GST-registered taxpayer is required to file as a part of their GST return filing. This form has to be filed either on a monthly basis or a quarterly basis. For most taxpayers, the requirement to file this return is monthly. GSTR 3B does not have to be filed by individuals who are:
- Input service distributors
- Non-resident taxable persons
- Taxpayers who are registered under the composition scheme
- Non-resident suppliers of the OIDAR supply
Every GST-registered taxpayer who is required to file GSTR 3B monthly needs to file it on or before the 20th of the succeeding month. What this means is that GSTR 3B for the month of June needs to be filed by the 20th of July, and so on. Monthly GSTR 3B applies to taxpayers whose annual turnover is greater than five crores.
Taxpayers whose annual turnover is of less than five crores can choose to either file GSTR 3b monthly or file it quarterly. If you go for quarterly filing, then the due date for you will be either the 22nd or 24th (depending on your state) of the succeeding month at the end of the quarter. What this means is that if you’ve chosen quarterly filings and the due date in your state is 22nd, the due date for the first quarter (Jan-March) will be April 22nd, and so on.
All due dates can be extended by the government from time to time, so always cross-check the due date before filing.
The GSTR 3B form
Details needed by the form
There are certain details that you need to fill in the GSTR 3B form They are:
- Your GSTIN number
- Your business’ legally registered name
- Details of all your sales and purchases which are eligible for reverse charge
- Details of all the interstate sales made by you to buyers who are unregistered, to unique identification holders, or persons who come under the composition scheme. An interstate sale is a sale made to someone in a different state.
- The input tax that you are eligible for
- The value of non-GST, nil rated, and/or inward supplies made by you in the month. Inward supplies are the supplies that you have received.
- Details of the taxes paid by you
Sections in the form
The GSTR 3B form has six sections which are all in tabular format. The following sections are auto-filled from the form GSTR1 and form GSTR 2B already filled by you.
- Sections 1
- Section 2
- Section 3(1()d)
- Section 4(A)(1)
- Table 4(A)(4)
- Table 4(A)(5)
- 4(B) (2)
The following data has to be filled by you. We recommend taking the help of experts for GSTR 3B filing:
- Section 3.1 of the form requires you to fill in all the details of outward supplies as well as inward supplies that are liable for reverse charge. ThIn this section, you need to specify the details of zero-rated outward taxable supplies, nil-rated and exempted outward supplies, general outward taxable supplies, inward supplies that are liable for payment on a reverse charge basis, and outward supplies to unregistered buyers.
Outward supply just stands for any supplies that have been sold by you. Whereas inward supplies refer to supplies bought or supplied to you.
- Section 3.2 requires you to supply the details of all interstate outward supplies to GST unregistered persons, unique identification number holders, and composition dealers. The details that need to be specified by you require you to state if it was an unregistered person, unique identification holder, or composition dealer; it also requires you to mention the total taxable value of the supply and the total IGST that was levied by you on the supplies.
- Section 4 of GSTR 3B needs you to mention the details of your net ITC (input tax credit). In this section, you need to provide the details of the supplies on which input tax credit is available, as well as the input credit tax reversals that have been made by you on supplies. Based on the data shared by you, a final tally of ITC reversal and ITC available to you is provided.
- Section requires you to specify and provide all the details of inward supplies that are non-GST, exempt, or nil-rated.
- Section 6 is for you to pay your self-ascertained tax; this means the GST amount that is due. This amount is referred to as ‘self-ascertained’ as this amount is calculated based on the information provided by you in the above-mentioned tables/sections.
Penalty for late filing
Filing your form late or not filing your form carries a penalty of INR 50 per day. However, if the form you were to file was a nil GSTR 3B return, in that case, the delay carries a penalty of INR 20 per day.
Additionally, on failing to pay your GST amount, you shall be charged 18% interest per annum. It is important to note, however, that if you have been deliberately not paying your GST and missing deadlines, in that case, a 100% penalty shall be levied on your GST amount.
Filing GSTR 3B is a necessary requirement for all taxpayers. While it seems really complicated, most of the data on GSTR 3B is auto-filled from the older forms already filled by you. We hope this blog helped you gain a better understanding of GSTR 3B and make it less confusing.