The Goods and Services Tax (GST) is one of the most important economic reforms in India. It revolutionized the taxation system by replacing multiple indirect taxes with one tax and creating a common market across India. The GSTR- 3B return filing process was introduced in 2017 to make it easier for businesses to comply with the new tax regime. Now, the government has recently announced new changes to GSTR- 3B return filing in 2023 that will make it easier for businesses to comply with their GST obligations. In this article, we will explore these changes and how they will affect businesses in India.
What is GSTR-3B Form?
GSTR- 3B return is a monthly self-declaration form filed by a registered taxpayer to report their monthly GST liability. The form includes details of all outward supplies made and inward supplies received during the month, as well as any GST paid or refunded.
The due date for filing GSTR- 3B return is 20th of the next month. For example, for the month of January, the due date for filing GSTR- 3B return would be 20th February.
What are difference between GSTR-1 and GSTR-3B?
GSTR-1 and GSTR-3B are both forms that need to be filed by registered taxpayers under the Goods and Services Tax (GST) regime in India.
GSTR-1 is a monthly or quarterly return that contains details of all outward supplies of goods and services made by the registered taxpayer. It includes details such as the taxpayer’s name and GSTIN, the invoice number and date, the value and quantity of goods and services supplied, and the tax amount paid. GSTR-1 is used to calculate the recipient’s input tax credit (ITC) and to verify the details of outward supplies declared by the supplier.
GSTR-3B is a monthly return that is a summary of the taxpayer’s monthly transactions. It includes details of outward supplies, inward supplies, and input tax credit claimed. It is a self-declaration by the taxpayer, and it helps the government to calculate the tax liability for the month. GSTR-3B is a provisional return, and any adjustments that need to be made can be made in the subsequent GSTR-1 returns.
In summary, while GSTR-1 provides detailed information about the supplier’s outward supplies of goods and services, GSTR-3B is a summary return that provides a summary of the supplier’s monthly transactions, including details of outward and inward supplies and input tax credit claimed.
Who is Required to File GSTR-3B Form?
As per the latest change in GST return filing in India, all taxpayers who are registered under GST are required to file their GSTR- 3B return by the 20th of the month following the end of the tax period. This return must be filed even if there is no business activity during the tax period.
How to File GSTR-3B Form?
The first step is to visit the GST website https://www.gst.gov.in/ and log in using your credentials.
Once you are logged in, you need to click on the ‘Services’ tab and then select ‘Returns’ from the drop-down menu.
Now, you need to click on the ‘Prepare Offline’ button under the ‘GSTR 3B Return’ section.
A PDF file will be downloaded on your computer. You need to fill out this form and submit it to the concerned authorities along with the required documents.
How to claim ITC in GSTR-3B?
To claim Input Tax Credit (ITC) in GSTR-3B, you will need to follow these steps:
- Login to the GST portal using your credentials.
- Navigate to the ‘Services’ section and select the ‘Returns’ option.
- Select the ‘GSTR-3B’ return and the relevant tax period for which you want to claim the ITC.
- Once the return is opened, you will see a section called ‘ITC Available’ where you can claim ITC for various taxes like CGST, SGST, IGST, and cess.
- In the ‘ITC Available’ section, you will need to enter the total eligible ITC amount for each type of tax that you are eligible to claim.
- The system will auto-populate the eligible ITC amount based on the data entered in your GSTR-2B return. However, if you have missed any eligible ITC in GSTR-2B, you can also manually enter the details in the ‘ITC available’ section.
- Ensure that you have all the necessary invoices and documents to support your ITC claim.
- After entering all the relevant details, click on the ‘Save’ button to save your ITC claim.
- Once you have verified and confirmed all the details in your GSTR-3B return, you can submit the return.
It is important to note that you can claim ITC only for those invoices that are uploaded by your suppliers in their GSTR-1 or GSTR-5 returns, and the ITC claim should not exceed the actual amount of tax paid on purchases. Therefore, it is recommended to reconcile your purchase register with the GSTR-2B data before filing GSTR-3B.
Due Date for filing GSTR-3B
The due date for filing GSTR-3B under the Goods and Services Tax (GST) regime in India is the 20th of the following month for which the return is being filed. For example, the GSTR-3B return for the month of January 2023 is due on February 20, 2023.
It is important to note that this due date is applicable to all registered taxpayers, including those who have nil tax liability. In case the due date falls on a public holiday or a Sunday, the due date is usually extended to the next working day.
Late fees are applicable if the GSTR-3B return is filed after the due date, so it is recommended to file the return on time to avoid any penalties or legal issues.
Late Filing Fees for GSTR-3B
GSTR-3B is a monthly return that needs to be filed by registered taxpayers under the Goods and Services Tax (GST) regime in India. The due date for filing GSTR-3B is the 20th of the following month for which the return is being filed.
If a taxpayer fails to file GSTR-3B within the due date, then late fees are applicable. The late filing fees for GSTR-3B are as follows:
- For taxpayers having Nil tax liability: There is a late fee of Rs. 20 per day of delay (Rs. 10 per day under CGST and Rs. 10 per day under SGST) subject to a maximum of Rs. 5000.
- For other taxpayers: There is a late fee of Rs. 50 per day of delay (Rs. 25 per day under CGST and Rs. 25 per day under SGST) subject to a maximum of Rs. 10,000.
It is important to note that the late fee for GSTR-3B is charged separately for each return and for each GSTIN of the taxpayer. Additionally, the late fee needs to be paid along with the outstanding tax liability, if any, while filing the return.
What Happens if You Do Not File GST-3B Return?
If you do not file your GSTR- 3B return, you may be liable to pay a late filing fee. In addition, you may also be required to pay interest on any outstanding GST liability. If you do not file your return and pay your GST liability by the due date, you may also be subject to penalties.
Conclusion
In conclusion, the new change in GSTR- 3B return filing in 2023 is an important step forward for India’s tax system. This new process will make it easier and more efficient to file returns, allowing taxpayers to focus on their business needs rather than worrying about complicated paperwork. Additionally, this move will help reduce compliance costs and create a smoother transition from one type of return filing to another. We look forward to seeing how this new change helps streamline India’s taxation system in the years ahead.
FAQ’s
What is the GSTR- 3B?
GSTR-3B is a simplified summary return filed by taxpayers to declare their summary GST liabilities for the relevant tax period and discharge these liabilities. The GSTR-3B form helps Retailers and other business owners understand their GST liability and comply with their tax filing obligations. Filing your GSTR-3B returns on time will ensure that you remain compliant with all the rules and regulations imposed by the government.
What is difference between GSTR 1 and 3B?
GSTR-1 is a monthly report of your outward business supplies. It captures all the details of sales and outward supplies made to customers, and these details are used to generate an invoice for customers. GSTR-3B, on the other hand, is a summary return that includes all your inward supplies, output tax liabilities (CGST, SGST, IGST), input tax credit claimed against it, and net payable or refundable amount. GSTR-1 has to be filed every month while GSTR-3B needs to be filed only once in 3 months.
What is GSTR-3B and its due date?
GSTR-3B is the monthly return filing form for indirect tax. This form must be filed by the 20th of every month (or extended due date issued by the government) for the taxable period preceding it, even if there has been no business activity during that period. Filing GSTR-3B is very important to maintain compliance with GST regulations and keep track of your business activities.
What if GSTR-3B is not filed on time?
If you fail to file your GSTR-3B on time, you will be liable to pay late fees up to a maximum of Rs 20,000 per return filed under each Act for the first time. For subsequent offenses, the late fees have been increased from INR 20,000 to INR 50,000. This is in addition to the interest that will be levied on the outstanding tax amount.