GSTR-3B is a monthly summary return that needs to be filed by registered taxpayers with the GSTN (Goods and Services Tax Network) in India. It is a summary of the monthly sales and purchases made by the business, and it helps in calculating the amount of tax payable by the business. In this article, we will discuss GSTR-3B in detail, including its format, due date, penalties for non-compliance, and how to file it.
What is GSTR-3B?
GSTR-3B is a monthly summary return that needs to be filed by registered taxpayers with the GSTN. It is a simplified return that needs to be filed until March 2021, after which it will be replaced by a new return system. GSTR-3B is a summary of the monthly sales and purchases made by the business, and it helps in calculating the amount of tax payable by the business.
Format of GSTR-3B:
GSTR-3B has 13 sections, and they are as follows:
1. GSTIN - The GST Identification Number of the taxpayer.
2. Legal Name - The legal name of the taxpayer.
3. Details of Outward Supplies and Inward Supplies liable to Reverse Charge - This section requires the taxpayer to provide details of all outward supplies made during the month, including the taxable value, GST rate, and the amount of tax paid. It also requires the taxpayer to provide details of all inward supplies liable to reverse charge.
4. Eligible ITC - This section requires the taxpayer to provide details of the input tax credit (ITC) available for the month, including ITC on inward supplies and ITC on reverse charge supplies.
5. Ineligible ITC - This section requires the taxpayer to provide details of the ITC that is not available for the month, including ITC on non-GST supplies, ITC on goods and services used for personal purposes, and ITC on goods and services used for making exempt supplies.
6. Tax Payable - This section requires the taxpayer to calculate the amount of tax payable for the month, including the amount of tax payable on outward supplies, inward supplies liable to reverse charge, and the amount of tax payable after adjusting the ITC.
7. Payment of Tax - This section requires the taxpayer to provide details of the tax paid for the month, including the amount of tax paid in cash and the amount of tax paid through ITC.
8. Interest - This section requires the taxpayer to calculate the interest payable, if any, for the month, including the interest payable on the amount of tax paid after the due date.
9. Late Fee - This section requires the taxpayer to calculate the late fee payable, if any, for the month, including the late fee payable for late filing of GSTR-3B.
10. Refunds - This section requires the taxpayer to provide details of any refunds claimed for the month.
11. Debit/Credit Notes - This section requires the taxpayer to provide details of any debit/credit notes issued for the month.
12. Advances Received - This section requires the taxpayer to provide details of any advances received for the month.
13. HSN Summary of Outward Supplies - This section requires the taxpayer to provide details of the HSN (Harmonized System of Nomenclature) code-wise summary of outward supplies made during the month.
Due Date for Filing GSTR-3B:
GSTR-3B needs to be filed on a monthly basis, and the due date for filing GSTR-3B is the 20th of the following month. For example, the GSTR-3B for the month of March 2022 is due on April 20, 2022.
Penalties for Non-Compliance:
Failure to file GSTR-3B within the due date will result in a penalty of Rs. 50 per day (Rs. 25 for CGST and Rs. 25 for SGST/UTGST) of delay. The maximum penalty is Rs. 5,000. If the taxpayer has no tax liability for the month, the late fee is reduced to Rs. 20 per day (Rs. 10 for CGST and Rs. 10 for SGST/UTGST) of delay, subject to a maximum of Rs. 500.
If the taxpayer fails to file GSTR-3B for a consecutive period of six months, then their registration under GST will be canceled. Additionally, if the taxpayer has not filed GSTR-3B for a particular month, they will not be able to file GSTR-1 or GSTR-2 for that month.
If a taxpayer fails to pay the tax liability mentioned in GSTR-3B within the due date, they will be liable to pay interest on the unpaid amount at the rate of 18% per annum. The interest will be calculated from the due date of filing GSTR-3B until the date of payment.
Filing GSTR-3B:
GSTR-3B can be filed online through the GSTN portal. The process involves logging in to the GSTN portal, selecting the GSTR-3B form, and entering the details in the respective sections. The taxpayer will need to provide the details of outward supplies, inward supplies liable to reverse charge, eligible and ineligible ITC, tax payable, tax paid, interest payable, late fee payable, refunds claimed, debit/credit notes, advances received, and HSN summary of outward supplies. Once all the details are entered, the taxpayer will need to review the form and then submit it. After submitting the form, the taxpayer will need to pay the tax liability (if any) and the late fee (if any) through the GSTN portal.
In conclusion, GSTR-3B is a monthly summary return that needs to be filed by registered taxpayers with the GSTN. It is a summary of the monthly sales and purchases made by the business, and it helps in calculating the amount of tax payable by the business. The due date for filing GSTR-3B is the 20th of the following month, and failure to file GSTR-3B within the due date will result in penalties and interest. GSTR-3B can be filed online through the GSTN portal by entering the details in the respective sections and paying the tax liability (if any) and the late fee (if any).
