Filing GSTR-3B returns is an essential part of GST compliance for businesses in India. This article covers everything you need to know, from format and due dates to recent changes and special scenarios.
Filing GSTR 3B on GST Portal is an essential requirement for businesses registered under the Goods and Services Tax (GST) regime in India. GSTR 3B is a summary return that provides a consolidated view of a taxpayer’s monthly transactions, including details of sales, purchases, and input tax credits.
It serves as a crucial document for reconciling tax liabilities and helps in the smooth flow of tax compliance. In this article, we will guide you through the process of filing GSTR-3B on the GST portal.
What is GSTR 3B?
GSTR-3B is a simplified monthly return that all GST-registered businesses in India need to file. It was introduced as an interim measure to help businesses transition smoothly to the new GST regime. GSTR-3B is a summary of all the business transactions, and it must be filed even if there are no transactions during the month.
Who Should File GSTR-3B Returns?
All businesses registered under GST in India need to file GSTR-3B returns. This includes regular taxpayers, composition scheme taxpayers, and Input Service Distributors (ISDs). However, businesses that are exempted from GST registration do not need to file GSTR-3B returns.
What is the Due Date for Filing GSTR-3B Returns?
The due date for filing GSTR-3B returns is the 20th of the following month. For example, the GSTR-3B return for the month of May 2023 should be filed by 20 June 2023.
What is the GSTR 3B Format?
The GSTR-3B format has two parts: Part A and Part B. Part A includes basic details of the business, such as the business name, GSTIN, and the period for which the return is being filed. Part B includes details of the transactions made during the month, such as taxable value, GST rate, and tax amount.
Prerequisites for Filing the GSTR-3B Return
Before you start filing your GSTR-3B return, make sure you have the following information:
| Item | Description |
| GSTIN | Your business’s Goods and Services Tax Identification Number (GSTIN) |
| Password | Your GST portal login password |
| Bank account details | Your business’s bank account details for payment of taxes if applicable |
| Invoices | Details of all invoices issued and received during the month |
| Challans | Details of all challans for payment of taxes, if applicable |
| Input tax credit | Details of all eligible input tax credits available for the month |
How to File GSTR-3B Online
Follow these steps to file your GSTR-3B return online:
Step 1: Login to the GST portal using your GSTIN and password
Step 2: Go to the ‘Services’ tab and select ‘Returns Dashboard’
Step 3: Select the financial year and the tax period for which you want to file the return
Step 4: Click on the ‘Prepare Online’ button under the GSTR-3B tile
Step 5: Fill in the details in Part A of the form. Verify the auto-populated details and make any necessary changes
Step 6: Fill in the details in Part B of the form, including details of all invoices issued and received during the month, challans for payment of taxes, if applicable, and input tax credits available for the month
Step 7: Verify all the details in the form and click on the ‘Save’ button
Step 8: Click on the ‘Preview’ button to view the GSTR-3B return
Step 9: If there are any errors, correct them and click on the ‘Preview’ button again
Step 10: If everything is correct, click on the ‘Submit’ button
Step 11: You will be asked to confirm your submission. Click on the ‘OK’ button
Step 12: After submitting the return, you will receive an ARN (Acknowledgement Reference Number) on your registered email and mobile number. Keep this number safe for future reference.
How to View the GSTR 3B Filing Status
After submitting the GSTR-3B return, you can check your filing status on the GST portal. Follow these steps to view the filing status:
Step 1: Log in to the GST portal using your GSTIN and password
Step 2: Go to the ‘Services’ tab and select ‘Returns Dashboard’
Step 3: Select the financial year and the tax period for which you want to view the filing status
Step 4: Under the GSTR-3B tile, you will see the status of your return.
GSTR-3B Late Fees and Penalty
Late filing of GSTR-3B returns attracts a late fee of ₹. 50 per day (₹ 20 for taxpayers with nil liability). The maximum late fee is capped at ₹ 5,000. In addition to the late fee, interest will be charged 18% per annum on the outstanding tax liability. Non-filing of GSTR-3B returns can lead to cancellation of GST registration and other penalties.
Recent Changes in GSTR 3B
The government has recently changed the GSTR-3B return filing process. The changes are aimed at easing the compliance burden for taxpayers. Some of the key changes are:
- Provision to download a draft of the returns at any time during the filing process.
- All return details can now be viewed in a single tab before submission.
- The government has introduced an auto-populated GSTR-3B return for taxpayers who use the GSTN (Goods and Services Tax Network) offline tool to prepare their invoices
- Introduction of a new table, Table 3.1.1, in GSTR 3B for mentioning details of e-commerce operator’s supplies.
- Alterations made to Part B and Part D of Table 4 in GSTR 3B for ITC reversal and reporting, respectively.
- Automatic generation of Challan for input tax credit utilization, eliminating the need for manual entry.
Special Scenarios in Filling in GSTR 3B
Here are some special scenarios that taxpayers may face while filing GSTR-3B returns:
- ITC reversal: If there are any changes to the input tax credit claimed in earlier returns, you need to reverse the excess credit in the current return
- Debit/Credit notes: If any debit or credit notes are issued during the month, you need to report them in Part B of the GSTR-3B return
- Reverse charge: If you have purchased goods or services from an unregistered supplier, you need to pay tax under the reverse charge mechanism. The tax paid under reverse charge needs to be reported in Part B of the GSTR-3B return.
Conclusion
Filing GSTR-3B returns is an important aspect of GST compliance for businesses in India. By following the steps outlined in this article, taxpayers can easily file their GSTR-3B returns online. It is also important to stay up to date with the recent changes in the GSTR-3B return filing process and understand the special scenarios that may arise while filing the returns.
Vakilsearch can assist businesses with their GST compliance needs, including GSTR-3B return filing. Vakilsearch’s team of experts can ensure accurate and timely filing of GSTR-3B returns and help businesses avoid penalties. Contact us today.
