GSTR-3B filing under GST

GSTR-3B filing| GSTR-3B Guide & necessary GSTR-3B Reconciliation

GSTR-3B filing, as per the GST laws, is a self-declared consolidated summary of all the inward and outward supplies done by the taxpayer in a month or a quarter.

GSTR-3B vs GSTR-2B reconciliation is now necessary to confirm that the Input Tax Credit claimed in the GSTR-3B form is valid and as per the GSTR-2B statement.

In this comprehensive article, we will be looking at the details of the GSTR-3B form under GST, GSTR 3B late fees, GSTR-3B due dates and all such related information related to GSTR-3B filing. 

This short article will discuss some of the essential aspects of the GSTR-3B form under GST.

GSTR-3B filing under GST

GSTR-3B under GST is a consolidated summary of inward & outward supplies made within a month. It’s a self-declaration form that every GST taxpayer has to file with GSTR-1 & GSTR-2 returns.

A regular taxpayer is supposed to file the GSTR-3B return for each tax period. (Either monthly or quarterly).

GSTR-3B gives a detailed summary of taxpayer's liabilities for a month. In GSTR-3B, it is NOT mandatory to upload the invoices of your outward & inward supplies as they have been already furnished in GSTR-1 & other GSTR forms.

Following are the highlighting features of the GSTR-3B form under GST:

• GSTIN-wise filing of GSTR-3B. Separate GSTR-3B for every GSTIN

• GSTR-3B CAN NOT be amended once filed

• Nil GSTR-3B returns are mandatory (GSTR-3B to be filed for zero returns) 

GSTR-3B Due Dates

The revised GSTR 3B filing due dates are based on the ‘Annual Aggregate Turnover’ of the business:

GSTR-3B filing eligibility

GSTR-3B filing applies to all the taxpayers eligible for filing GSTR-1, GSTR-2 & GSTR-3 returns

The following types of taxpayers are NOT eligible for filing the GSTR-3B return under GST:

• Non-resident taxable person

• Input Service Distributor (ISD)

• Supplies that are classified as Online Information and Database Access or Retrieval Services (OIDAR) when a non-resident provides them

• Composition dealers opting for GST composition scheme

• When taxpayer deducts tax at source (TDS) as per Section-51 of the CGST Act

• When taxpayer collects tax at source (TCS) as per Section-52 of the CGST Act

Important GSTR-3B reconciliations

This section discusses the two most crucial reconciliations that every taxpayer should run based on GSTR-3B data.

1. GSTR-3B vs GSTR-1 reconciliation

GSTR-3B and GSTR-1 returns are interdependent because GSTR-1 return CAN NOT be filed if your previous tax period’s GSTR-3B filing is NOT done.

Hence, it’s essential to run GSTR-3B vs GSTR-1 reconciliation to identify the gaps and confirm the outward sales data that goes in the GSTR-3B return.

Importance of GSTR-3B vs GSTR-1 reconciliation

• Helps avoid late fees and interests for short payments and non-payment of outstanding liabilities.

• Ensures there is NO duplication of invoices.

• Ensures that every invoice mentioned in GSTR-1 is present in GSTR-3B as well.

• Easy calculation of GST on outward sales for a particular tax period.

• Identification of errors in the integrated taxes.

2. GSTR-3B vs GSTR-2B Reconciliation

The outward supplies details filed by a supplier in his GSTR-1 are reflected in the GSTR-2A and GSTR-2B of the recipient of these supplies.

Claiming of eligible Input Tax Credit is wholly based on the ITC available in the GSTR-2B of the taxpayer.

Hence, GSTR-2B reconciliation is necessary to claim only the eligible GST Input Tax Credit.

Importance of GSTR-3B vs GSTR-2B reconciliation

• The taxpayer can claim eligible ITC on the GST paid on inward supplies.

• ITC reflected in the GSTR-2B statement shall be considered for claiming the final ITC in the GSTR-3B form.

• GSTR-2A will show the details uploaded by the supplier, but under GSTR 3B, the taxpayer will himself upload the details to claim ITC for the particular tax period.

• Only ITC available in the GSTR-2B of the month shall be considered the eligible ITC.

Hence, GSTR-3B vs GSTR-2B reconciliation is essential for 100% GST compliance.

Benefits of using automated GSTR 2B reconciliation software

• Saves time & manual efforts

• 100% accurate data reconciliation 

• No compliance issues

• Easy integration with your existing ERP

• Completely automated GSTR-3B filing

Reversal of ITC in GSTR-3B

Excess or ineligible Input Tax Credit claimed by the taxpayers can be reversed in the GSTR-3B return.

To reverse the ITC, the taxpayers must furnish the ITC reversal details in Table 4 (B) of Form GSTR-3B.

1. As per Rule 42 & 43 of SGST/CGST Rules

• In this section, the details of ITC claimed on input or purchases of products/services which are further utilized partly for business and partly for a non-business purpose. 

• ITC reversal is required on input supplies, including nil-rated supplies & exempted goods.

• ITC on capital goods used for making exempted supplies, nil-rated supplies, or taxable supplies must be provided in this section. The Input Tax Credit on goods that are NOT used for business purposes must be REVERSED.

2. ‘Others’ section

• Furnish the ITC reversal details in this section for Input Credit claimed other than mentioned in the previous section.

Conclusion

GSTR-3B return is mandatory for all taxpayers, and it is essential to file GSTR-3B before the due date.

Instead of going for a manual reconciliation & GSTR-3B filing, we suggest filing your GSTR-3B returns with a completely automated solution like GSTHero. This will help you stay 100% compliant with the frequently changing GST laws and also help you to avoid clerical mistakes in your returns.

Stay ahead; stay updated!

Until the next time….