Essential GSTR-3B Guide: Filing, Due Dates, & Penalties. A concise summary of GST returns for Indian taxpayers, ensuring compliance & accuracy.
GSTR 3B Due Date is a crucial self-declared summary GST return that taxpayers in India need to file every month (quarterly for the QRMP scheme). This return serves as an essential tool for reporting key financial figures related to sales, Input Tax Credit (ITC) claimed, and net tax payable under the Goods and Services Tax (GST) regime.
Here are some essential points to know about GSTR-3B:
Monthly/Quarterly Filing: Taxpayers are required to file GSTR-3B either on a monthly or quarterly basis, depending on their eligibility under the QRMP (Quarterly Return Monthly Payment) scheme. The return summarises the tax transactions made during the period and assists in calculating the net tax liability.
Summary Figures Reporting: GSTR-3B requires taxpayers to report summary figures, including total sales, ITC claimed, and the net tax payable. These figures provide an overview of the taxpayer’s tax position for the given period.
Per GSTIN Filing: Each registered taxpayer under GST must file a separate GSTR-3B for every GST Identification Number (GSTIN) they possess. This ensures accurate reporting and accounting of taxes for each business entity.
Timely Tax Payment: Taxpayers are mandated to pay the GST liability on or before the date of filing GSTR-3B, which is typically the earlier of its due date. Timely payment ensures compliance with GST regulations and avoids penalties or interest on delayed payments.
Non-Revisable Return: Once GSTR-3B is filed, it cannot be revised or amended. Therefore, accuracy and diligence in reporting are crucial to avoid any discrepancies in tax calculations.
Zero Liability Filing: Even if there is no tax liability for a particular period, taxpayers must compulsorily file GSTR-3B. This helps maintain a consistent record of tax filings and compliance with the GST framework.
GSTR-3B plays a pivotal role in the GST compliance process, enabling taxpayers to fulfil their tax reporting obligations effectively. By providing a concise summary of sales, ITC, and tax payable, this return streamlines tax assessments and helps tax authorities monitor tax compliance across businesses. As such, understanding and adhering to the guidelines for filing GSTR-3B is crucial for all GST-registered entities to ensure seamless and accurate tax reporting.
Who Should File GSTR 3B?
Under the Goods and Services Tax (GST) regime in India, the filing of GSTR-3B is a critical compliance requirement for all registered taxpayers. However, there are certain exceptions where specific registrants are exempted from filing this return. Let’s delve into the details to understand who should file GSTR-3B and who is exempt:
Obligation to File GSTR-3B:
Every person who is registered under GST is obligated to file GSTR-3B. This means that businesses and individuals with a valid GST registration must regularly submit this return to the tax authorities.
Exemptions from GSTR-3B Filing:
While most registered taxpayers must file GSTR-3B, certain categories are exempted from this requirement. The following registrants are not required to file GSTR-3B:
- Taxpayers Registered under the Composition Scheme: Businesses and individuals who have opted for the Composition Scheme are exempted from filing GSTR-3B. The Composition Scheme allows small taxpayers to pay taxes at a fixed rate based on their turnover, and they have simplified compliance requirements.
- Input Service Distributors: Input Service Distributors, entities that distribute Input Tax Credit (ITC) among their branches or units, do not need to file GSTR-3B. Instead, they have a separate return (GSTR-6) for ITC distribution.
- Non-Resident Suppliers of OIDAR Service: Non-resident suppliers who provide Online Information and Database Access or Retrieval (OIDAR) services to recipients in India are exempted from GSTR-3B filing.
- Non-Resident Taxable Persons: Non-resident taxable persons, who occasionally engage in taxable supplies in India but do not have a fixed place of business, are also exempt from GSTR-3B filing.
It is essential for taxpayers to be aware of their specific filing requirements under GST and adhere to the prescribed timelines for GSTR-3B submission. Failing to file this return within the due date may lead to penalties and other legal consequences.
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Late Fee & Penalty
Filing GSTR-3B within the specified due date is crucial for all GST-registered taxpayers to maintain compliance and avoid penalties. In case of delayed submission, late fees and interest charges are levied as per the GST regulations. Let’s explore the consequences of late filing of GSTR-3B:
Late Fee for Delayed Filing:
- For taxpayers who fail to file GSTR-3B within the due date, a late fee is imposed as follows:
- ₹ 50 per day of delay: If the return is filed after the due date, a late fee of ₹ 50 per day is charged until the return is filed. This late fee applies to all taxpayers who have a tax liability for the month.
- ₹ 20 per day of delay for Nil Tax Liability: For taxpayers who do not have any tax liability for the month, the late fee is reduced to ₹ 20 per day of delay. This concession is provided to those with no tax dues but who still need to file the return within the prescribed timeline.
Interest on Outstanding Tax:
In addition to late fees, interest at the rate of 18% per annum is charged on the outstanding tax amount if the GST dues are not paid within the due date. The interest is calculated from the day following the due date until the date of actual payment. It is essential for taxpayers to promptly settle their tax liabilities to avoid accumulating interest charges.
It is crucial for all GST-registered entities to meet the deadlines for GSTR-3B filing and tax payment. Failure to comply with these deadlines can lead to financial repercussions, such as increased late fees and interest charges, impacting the overall financial health of the business. Timely and accurate filing of GSTR-3B ensures smooth tax compliance, avoids penalties, and fosters a transparent and efficient tax system.
As a responsible taxpayer, staying aware of the due dates, understanding the late fee and interest provisions, and fulfilling the tax obligations on time are vital to maintaining a favourable tax record and contributing to the smooth functioning of the GST framework.
Due Dates for GSTR-3B Filing
Over the years, the due dates for filing GSTR-3B have witnessed significant modifications, aimed at simplifying the tax compliance process and ensuring timely submissions. Let’s delve into the timeline of these changes and the crucial points to remember:
Up to December 2019:
Prior to December 2019, the due date for filing GSTR-3B was fixed on the 20th of the subsequent month. Taxpayers were required to pay taxes and submit their GSTR-3B returns within 20 days from the end of the tax period.
January 2020 Onwards:
From January 2020, a notable alteration was implemented to ease the burden on taxpayers with varying business sizes. The due dates for GSTR-3B filings were staggered based on the taxpayers’ aggregate turnover. This step aimed to streamline the process and align it with taxpayers’ unique requirements.
QRMP Scheme Opted Taxpayers (Effective from 1st January 2021):
To further simplify tax filing for eligible taxpayers, the Quarterly Return Monthly Payment (QRMP) scheme was introduced. Under this scheme, taxpayers could file GSTR-3B returns quarterly while making monthly tax payments.
For taxpayers availing the QRMP scheme, the due date for GSTR-3B filing is either the 22nd or 24th of the month following each quarter. This deadline varies based on the State/UT of the taxpayer’s principal place of business, and taxpayers must adhere to the specific applicable date.
Crucial Points to Note:
Timely Tax Payment and GSTR-3B Filing: It is vital for taxpayers to ensure prompt tax payments and GSTR-3B filings within the stipulated deadlines to maintain compliance with GST regulations.
Late Filing Penalties: Late filing of GSTR-3B attracts a late fee and interest at the rate of 18% per annum. To avoid these penalties, taxpayers must prioritise meeting the due dates.
Late Fee and Interest for Delayed Filings: If the tax payment was made within the due date but the GSTR-3B filing was delayed, both late fees and interest will be applicable.
Quarterly GSTR-1 Filers: Taxpayers filing quarterly GSTR-1 returns must remember that they are still required to pay taxes and file GSTR-3B returns every month.
Adhering to these crucial points and staying updated with the GSTR-3B due dates is of utmost importance for all taxpayers. Failure to comply with the specified deadlines can result in financial implications and non-compliance issues. By staying vigilant and managing tax obligations efficiently, taxpayers can navigate the GST framework with ease, contributing to a smoother and more transparent tax ecosystem. Seeking guidance from tax professionals and utilising reliable online platforms can further simplify the GSTR-3B filing process and facilitate smooth compliance with GST regulations.
How to File GSTR-3B?
Filing GSTR-3B, the self-declared summary GST return, is an essential task for all registered taxpayers. To ensure a seamless process, follow these step-by-step instructions:
Step 1: Login to GST Portal
Visit the GST portal and log in. On the homepage, check the return filing status for the last five tax periods.
Step 2: Access the Returns Dashboard
Navigate to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.
Step 3: Select Financial Year and Return Filing Period
Choose the ‘Financial Year’ and ‘Return Filing Period’ from the drop-down list on the ‘File Returns’ page. Click the ‘SEARCH’ button. Note that if you file quarterly returns, you must also file Form GSTR-3B for the last month of the year. Filing for Month 1 or Month 2 of the quarter won’t be usable.
Step 4: Prepare Online
On the ‘Monthly Return GSTR-3B’ tile, click the ‘PREPARE ONLINE’ button. Answer a list of questions and proceed to the next step.
Step 5: Enter Details in Each Tile
Enter values in each tile displayed as applicable, including summary details of outward and inward supplies, input tax credits claimed, exempt and non-GST inward supplies, and late fees and interest. Verify the auto-generated details from GSTR-1 and GSTR-2B in the ‘SYSTEM GENERATED GSTR-3B’ tab.
Step 6: Confirm and Save
Click the ‘ADD’ or ‘DELETE’ buttons to make modifications in respective tiles. Once data is entered, click ‘CONFIRM’. Save your progress by clicking the ‘SAVE GSTR-3B’ button.
Step 7: Submit the Return
Once all details are saved, the ‘SUBMIT’ button is enabled. Click ‘SUBMIT’ to finalise the GSTR-3B return. The added data will be frozen, and the status will change to ‘Submitted’.
Step 8: Preview and Payment
Scroll down to view the draft GSTR-3B return by clicking ‘PREVIEW DRAFT GSTR-3B’. For payment, click the ‘Payment of Tax’ tile. Offset liabilities by utilising available credits, adhering to utilisation principles.
Step 9: File with DSC or EVC
Select the checkbox for declaration and choose an authorised signatory from the drop-down list. Click ‘FILE GSTR-3B WITH DSC’ or ‘FILE GSTR-3B WITH EVC’. Follow the prompts and click ‘PROCEED’.
Step 10: Success
Upon successful filing, a confirmation message will be displayed. The status of GSTR-3B will change to ‘Filed’. You can view the filed return by clicking ‘VIEW GSTR-3B’.
By following these steps diligently, taxpayers can seamlessly file GSTR-3B and stay compliant with GST regulations. Timely and accurate filing ensures smooth business operations and strengthens the foundation of the GST framework. Remember to stay updated with the GST portal’s latest guidelines and use reliable online platforms to simplify and streamline your GST compliance journey.
FAQs:
What is Gstr 1 and 3B due date?
The due date for GSTR-1 and GSTR-3B varies depending on the aggregate turnover of the business. For businesses with sales of up to Rs.5 crore, GSTR-1 is due quarterly by the 13th of the month following the relevant quarter, while GSTR-3B is due monthly by the 20th of the month following the tax period. For businesses with sales of more than Rs.5 crore, GSTR-1 and GSTR-3B are due monthly by the 11th and 20th of the month following the tax period, respectively.
Is it mandatory to file Gstr 3B monthly?
Yes, it is mandatory to file GSTR-3B monthly for all regular GST taxpayers
What is the due date for GST monthly payment?
The due date for GST monthly payment is the 20th of the month following the tax period for which the payment is being made.
Is Gstr 3B monthly or quarterly?
GSTR-3B is a monthly return that must be filed by all registered GST taxpayers.
Is Gstr 1 and 3B monthly or quarterly?
GSTR-1 can be filed monthly or quarterly depending on the aggregate turnover of the business. Whereas GSTR-3B is due monthly irrespective of the aggregate turnover of the business. However, GSTR 3B can be filed quarterly by those under the QRMP scheme.
