GSTR-3 Explained

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Every registered business is required to furnish details of the Inward and the Outward Supply and make payment of GST in monthly GSTR-3 Return.

Filing of Monthly Return under GST – GSTR 3

As discussed earlier various heads under GSTR-1 and GSTR-2. GSTR-1 requires the taxpayer to furnish the details of the outward supply. Likewise, GSTR-2 mandates furnishing the details of the inward supply or the purchases in simple words. Let us discuss the various heads and their information source under GSTR3.

Every registered taxpayer is required to file the monthly return before 20th of next month.

Given below are all the heads under which information is required to be furnished:

  • GSTIN – Each taxpayer is allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). A format of the GSTIN has been shown in the image below. GSTIN of the taxpayer will be auto-populated at the time of return filing.

pastedGraphic.pngFormat of GSTIN

 

  • Name of the taxable person – The name of the taxpayer, will also be auto-populated at the time of logging into the common GST Portal.

 

  • Address – Here the business address of the registered taxable person will get auto-populated here.

 

  • Period: (Month -Year) -A taxable person is required to select from a drop down the relevant month and the year respectively for which GSTR-3 is being filed.

 

  • Turnover Details – This heading includes consolidated turnover of all types of supplies. Gross turnover needs to be bifurcated between:
  1. The taxable turnover
  2. The export turnover
  3. Nil rated and  the exempted turnover
  4. Non-GST turnover
  5. Total turnover ( sum of above all)
  • Outward Supplies-All the particulars filed under GSTR-1 will flow under this heading. GSTR-1 requires an assessee to furnish the details of the outward supplies. All such the information gets auto-populated under the respective heading. These subheadings have been provided below:
  1. Inter-state supplies to the registered taxable person
  2. Intra-state supplies to the registered taxable person
  3. Inter-state supplies to the consumers
  4. Intra-state supplies to the consumers
  5. Exports (including deemed exports)
  6. Revision of supply invoices / debit notes / credit notes
  7. The total tax liability on  the outward supplies
  • Inward Supplies-Similar to the outward supply, every registered taxpayer is required to furnish details of the inward supply in his monthly GSTR-2. All the information filed under GSTR-2 will flow into this heading. Below are the subheadings where the information will get auto-populated:
  1. Inter-state supplies received
  2. Intra-state supplies received
  3. Imports
  4. Revision of purchase of invoices / debit notes / credit notes
  5. The total tax liability on  the inward supplies on reverse charge
  6. ITC reversal
  • Total Tax Liability for the month -After all the outward supplies and the inward supplies are declared, GSTN portal will auto-calculate the tax liability under this heading. Here the taxpayer will determine his tax liability from dealing in both goods and provision of services. Similarly, a separate value will be shown for CGST, SGST, and IGST respectively.
  • TDS credit received during the month – Any tax credit by way of tax deducted at the source will auto-populate here from taxpayer’s GSTR-2.
  • TCS credit received during the month – Similar to the TDS above, in case of the E-commerce marketplace sellers, any amount of TCS collected by the E-commerce operator will be available here. This information will again be flowing from the GSTR-2 filed for the same period.
  • ITC received during the month – The total amount of eligible input tax credit available for adjustment will get auto-computed here.

 

Part B

  • Tax, Interest, Late Fee and Penalty Paid – This heading will take the input from all the headings given above and will regulate the final GST liability. Separate tax liability will be shown against the IGST, CGST, and SGST. At this juncture the taxpayer will have the option to debit cash ledger/ credit ledger against the liability outstanding.
  • Refunds Claimed from Cash Ledger – The input credit amount in excess of the tax liability will flow to this heading. The taxpayer can claim a refund of the amount showing in this header.

After all the particulars are furnished properly, the taxpayer is then required to sign digitally either through a digital signature certificate (DSC) or Aadhar based signature verification to authenticate the return.

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.

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