GSTR-3B Under GST | A Comprehensive Guide
In the 43rd GST Council Meeting held on 28th May 2021, the government has relaxed its norms regarding the late fee for delayed filing of the GSTR-3B. GST Amnesty Scheme was introduced for all the small taxpayers who have their GSTR-3B filing kept pending, and thus the late fee waiver has been announced for delayed GSTR 3B filing.
In the wake of this decision, we must have the idea of GSTR-3B clear, and the taxpayers can take better decisions and file their GSTR-3B returns on time.
This short article will discuss some of the essential aspects of the GSTR-3B form under GST.
What is GSTR-3B under GST?
GSTR-3B is a consolidated return of inward & outward supplies that a taxpayer has to file. It’s a monthly self-declaration form that every GST registered person has to file along with the GSTR-1 & GSTR-2 forms.
A regular taxpayer has to file GSTR-3B for each tax period (month or a quarter).
GSTR-3B gives a consolidated summary of all the taxpayer’s tax liabilities for a month, and the same has to be filed in this GSTR-3B. 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 some of the specific features of the Form GSTR-3B under GST:
- Separate GSTR-3B to be filed for every GSTIN
- No revision allowed in the GSTR-3B once filed
- GSTR-3B has to be file for Nil returns (zero-returns) as well.
GSTR-3B Due Dates
Following are the revised GSTR-3B filing due dates based on the businesses’ annual aggregate turnover (AAT).
| AAT in previous FY | GSTR-3B Due Date |
| Greater than 5 Crore | Filing is done ‘Monthly’.20th of every month for the preceding month |
| Less than or equal to 5 | 22nd of every month for normal category States/UT–Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Tamil Nadu Goa, Karnataka, Kerala, Telangana, Daman-Diu & Dadra and Nagar Haveli, Puducherry, Andaman, Nicobar Islands, or Lakshadweep |
| 24th of every month for special category States/UT-Rajasthan, Himachal Pradesh, Uttarakhand, Punjab, Haryana, Uttar Pradesh, Tripura, Bihar, Arunachal Pradesh, Sikkim, Manipur, Nagaland, Mizoram, Assam, Jharkhand, Meghalaya, West Bengal, Odisha, Chandigarh, Delhi, Jammu and Kashmir, Ladakh |
Who are eligible for GSTR-3B return filing?
GSTR-3B can be filed by any taxpayer eligible to file GSTR-1 & GSTR-2 & GSTR-3 forms.
The following categories of taxpayers are NOT eligible for filing GSTR-3B under GST:
- An Input Service Distributor (ISD)
- Supplies classified as Online Information and Database Access or Retrieval Services (OIDAR) when provided by a non-resident
- A non-resident taxable person
- Taxpayer registered under GST Composition scheme
- Taxpayer deducting tax at source as per Section-51
- Taxpayer collecting tax at source as per Section-52
GSTR-3B & QRMP Scheme under GST
Earlier, the taxpayers were required to file the GSTR-3B monthly. However, to ease the return filing easier, the government has introduced the ‘Quarterly Return Monthly Payment’ scheme under GST.
This scheme came into effect from 1st January 2021. This scheme has facilitated the small businesses to file GSTR-3B every quarter.
QRMP scheme will benefit the taxpayers that are not eligible to file the monthly GSTR 3B return.
Following are the due dates apply for the taxpayers opting for the QRMP scheme:
| Frequency | Type of registered Person | GSTR-3B Due Date |
|---|---|---|
| Monthly | All types of registered GST taxpayers | 20th of the succeeding month |
| Quarterly | Principal place of business in-Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Tamil Nadu Goa, Karnataka, Kerala, Telangana, Daman-Diu & Dadra and Nagar Haveli, Puducherry, Andaman, Nicobar Islands, or Lakshadweep | 22nd of the succeeding month |
| Quarterly | Principal place of business in- Rajasthan, Himachal Pradesh, Uttarakhand, Punjab, Haryana, Uttar Pradesh, Tripura, Bihar, Arunachal Pradesh, Sikkim, Manipur, Nagaland, Mizoram, Assam, Jharkhand, Meghalaya, West Bengal, Odisha, Chandigarh, Delhi, Jammu and Kashmir, Ladakh | 24th of the succeeding month |
Penalty for late GSTR-3B filing
Late filing of the GSTR-3B return can attract a monetary penalty.
| Particulars | Penalty for intra-state supplies | Penalty for inter-state supplies |
|---|---|---|
| A person having zero returns for the respective tax period | Rs 20 per day(Rs 10 under CGST + Rs 10 under SGST) | Rs 20 per day(under IGST) |
| Other cases | Rs 50 per day (Rs 25 under CGST + Rs 25 under SGST) | Rs 50 per day (under IGST) |
NOTE: Late filing of GSTR-3B can attract a penalty and interest of 18% per annum.
NOTE2: If a taxpayer pays the tax before the deadline but files his GSTR-3B after the deadline, he will be charged with the penalty and the interest of 18 % per annum.
Exception in 2021:
As discussed in the earlier section of the article, due to an upsurge in the COVID-19 pandemic and the disturbed state of the economy, the government announced a relaxation in the GSTR-3B late fees for delayed return filing.
It has also cut down the interest rates for the same under the GST Amnesty Scheme.
GSTR-3B vs GSTR-1 reconciliation
Reconciliation is an essential task in the complete GST return filing processes. Reconciliation helps you eliminate incorrect data and rectify the inaccurate data to get a completely error-free reconciliation.
A taxpayer must have his GSTR-1 reconciled against the GSTR-3B form to spot discrepancies in his outward supplies returns.
If GSTR-1 is filed incorrectly, the recipient of this supplier will not be able to avail of maximum GST Input Tax Credit, which will affect his business workflow.
Manual reconciliation is a tedious task, and there is a high probability of human-induced errors in it.
However, tax experts advise using GSTR 3B return filing & automated reconciliation software like GSTHero, for all your reconciliation & GST return filing process.
Benefits of using automated GST return filing solution:
- Saves time & manual efforts
- 100% accurate data reconciliation
- No compliance issues
- Easy integration with your existing ERP
- Completely automated GSTR-3B filing
Conclusion
GSTR-3B is a mandatory return that every eligible taxpayer has to file well before the deadline.
Taxpayers must file the GSTR-3B return even if they have zero business in that tax period. The businesses must file their GSTR-3B returns on time as it affects the GSTR-1 of the supplier and, in turn, affects the ITC claim of their recipient.
Instead of going for a manual reconciliation & GSTR-3B filing, we suggest using GSTR 3B return filing software 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….