Most Indian businesses
have started complying with GST after 1st July 2017. Now, invoices and bills are being raised in the GST format. After the
initial glitches in filing monthly returns, Government has taken various steps
to simplify GST Return Filing.
Tax authorities had
introduced a simple return form called as GSTR 3B. This has to be used only for
the month of July 2017 and August 2017 but it stayed on even in year 2018.
Every registered taxpayer (Except for composition scheme) needs to file a
separate GSTR 3B for each GSTIN they have.
This is more like a
self-declaration return and the taxpayer is not required to provide invoice
level information in this form. Only total values for each field have to be
provided.
This article was
originally published in July 2017 but since Government came up with so many
changes, we’ve removed most of the outdated content from this article.
Below is the latest update as on 22 Feb 2018. According to a note prepared by PwC,
GSTN has made the following key changes in the process of filing GSTR 3 B as
below:
1) Tax payment – Earlier, a taxpayer was required to
Submit the return to ascertain the tax liability amount. Post submission, no
changes were allowed. Now, the tax liability to be paid in cash/ credit will be
shown before submitting the return.
2) Challan generation
– Tax payment
challan can now be auto-generated after offsetting the input tax credit
available in credit ledger. Taxpayer, however, has an option to edit the credit
amount to be utilized and not to consider the system generated credit
utilization. Earlier, the assessee had to manually fill in the credit
utilization amount and generate the challan.
3) Download facility
of draft return – A new feature of
downloading draft return at any stage has been provided to verify the saved
details offline.
4) Auto-fill of tax
amount – Taxpayer now
need to fill either CGST or SGST/UTGST amount, other tax will get auto-filled.
Details of changes
done in GSTR 3B filing process:
·
FAQs and User Manual
are provided along with pop-ups, to guide taxpayers while filling Form GSTR 3B.
·
Fill either CGST or
SGST/UGST amount, other tax will get auto-filled.
·
Form GSTR 3B can be
previewed or downloaded, for cross verifying saved details in any table(s), by
Clicking PREVIEW DRAFT GSTR-3B button. The draft Summary page
of your GSTR-3B can be downloaded for review.
·
Once taxpayer proceeds
to payment, the details of balances as available in cash and credit ledgers can
be seen (refer Table 6.1 – Payments Table) at one place.
·
Tax liabilities as
declared in the return along with the credits gets updated in the ledgers and
displayed in the “Tax payable” column of the payment section and can be seen
while hovering on the said headings of credit in the payment section.
·
System auto-populates
“Tax to be paid through ITC” fields with optimum utilization amounts based on
provisions of the law relating to credit utilization. It is suggestive and the
taxpayer may edit the ITC utilization. In case ITC utilization is changed, the
cash to be paid also gets changed accordingly.
·
If available cash
balance in Electronic cash ledger is insufficient to offset the liabilities,
additional cash required for paying liability is displayed in the last column
of the Table (Additional cash required). The taxpayer may create challan for
that amount directly by clicking on the CREATE CHALLAN button.
Once online payment is made, the system will navigate back to Payments Table.
·
Click the MAKE
PAYMENT/POST CREDIT TO LEDGER button to pay off the liabilities or to
claim credit in case of no liabilities.
·
Click “Proceed to
file” and File GSTR-3B with EVC or File GSTR-3B with DSC.
Who Needs to File
GSTR-3B?
Every person
registered under GST needs to file GSTR-3B return. In case you have multiple
GSTNs, separate GSTR-3B needs to be filed for every GSTN.
Even if there are no
transactions during the month, registered businesses still need to
file NIL GSTR-3B.
Following registrants
do not have to file GSTR-3B:
·
Input Service
Distributors
·
Businesses registered
under GST Composition Scheme
·
Suppliers of online
information and database access or retrieval services (OIDAR), who have to
pay tax themselves.
·
Non-resident taxable
person
Why is it important to
file GSTR 3B?
Since GSTR 3B is
temporary in nature, some businesses might think that it’s not that important.
However, you should know following things:
·
Not filing GSTR-3B may
invite the penalty of 18% per year
·
GSTR 3B is required
for preparation of filing further GST returns.
·
Same data can be used
to file GSTR 1 .
9 Important Points
About GSTR-3B
Before we take a
deeper dive and understand this form, let’s first take a look at few important
points that you should know:
1. GSTR 3B needs to be separately filed for each
GST registration number.
2. It needs to be filed online only in the common
portal i.e. www.gst.gov.in, there is no any offline utility provided which can
be filled and uploaded into the system. In the post-login mode, one can access
it by going to Services > Returns > Returns Dashboard. After selecting
the financial year and tax period, GSTR 3B, (if applicable), in the given
period.
3. It is needed to be filed even if it is a nil
return.
4. Once filed, the form shall be final and there
is no provision for revision of the return once filed. Any revision has to be
done through while filing of GSTR -1, GSTR -2, GSTR -3.
5. Upon generation of GSTR 3, if actual
liabilities are different from those declared in GSTR 3B, the system will
update the delta (difference) between GSTR 3B and GSTR 3 automatically. In case
of an upward revision of liabilities, one will be liable to pay differential
tax along with interest on the (differential) amount.
6. Refund cannot be claimed under GST-3B since
invoice-wise details in form GSTR 1 must have to be submitted for the matching
of invoices and for processing of the refund claim.
7. All migrated taxpayers need to furnish all the
information required under REG- 26 so as to file GSTR-3B. Therefore, if the
details of enrolment for registration are not fully or properly submitted, then
such person may not be able to file the GSTR-3B return.
8. Composition Dealers are not required to file
GSTR-3B. They will be required to file quarterly return only.
9. If there is any tax payable then payment of
such tax is mandatory for the filing of form GSTR-3B. In other words, GSTR-3B
return cannot be filed without full payment of the tax due.
System based reconciliation of information furnished in FORM
GSTR-1 and FORM GSTR-2 with FORM GSTR-3B
In case the registered
person intends to amend any details furnished in FORM GSTR 3B, it may be done
in the FORM GSTR-1 or FORM GSTR-2, as the case may be. For example, while
preparing and furnishing the details in FORM GSTR-1, if the outward supplies
have been under-reported or excess reported in FORM GSTR-3B, the same maybe
correctly reported in the FORM GSTR-1.
Similarly, if the
details of inward supplies or the eligible ITC have been reported less or more
than what they should have been, the same may be reported correctly in the FORM
GSTR-2. This will get reflected in the revised output tax liability or eligible
ITC, as the case may be, of the registered person.
The details furnished
in FORM GSTR-1 and FORM GSTR-2 will be auto-populated and reflected in the
Part-A of FORM GSTR-3 for that particular month and the tax paid while filing
FORM GSTR-3B will get auto-populated in Part-B of FORM GSTR-3.
If the details filed
in FORM GSTR-1 and FORM GSTR-2 matches, the tax liability payable in FORM
GSTR-3 will be zero and in case it does not match the following action will be
taken-
Mismatch
|
Action
|
If the ITC claimed
in FORM GSTR-2 is less than the ITC claimed and utilized by the registered
person in FORM GSTR-3B.
|
The excess ITC
claimed in FORM GSTR-3B will be added to the output tax liability and must be
paid along with the interest while filing FORM GSTR-3.
|
If the ITC claimed
in FORM GSTR-3B is more than the ITC claimed and utilized by the registered
person in FORM GSTR-2.
|
The additional
amount of ITC will be credited to the electronic credit ledger of the
registered person when he submits the return in FORM GSTR-3.
|
Where the total GST
liability of the registered person as per the details furnished in
FORM GSTR-1 and FORM GSTR-2 are less than
the GST liability as per the details furnished in the FORM GSTR-3B.
|
The same is not
offset by a corresponding reduction in the input tax credit to which he is
entitled, the excess shall be carried forward to the next month’s return to
be offset against the output liability of the next month by the taxpayer when
he signs and submits the return in FORM GSTR-3.
|
In case if the
registered person fails to file GSTR-3B, and later on files GSTR-1, 2 and 3.
|
Since the payment
was not made on or before the due date of filing form GSTR-3B, the registered
person shall be liable for payment of interest on delayed payment of tax. The
interest shall be calculated from the due date of filling GSTR-3B till the
date of filling GSTR-3.
|
How to File GST
Returns Online?
Please follow these
steps to file GSTR-3B on GSTN portal. This guide has been released by
Government on GSTN portal.
1. After login to GSTN portal, select Return
Dashboard
2. Select Financial Year 2017-18 and Month July.
Click Search and Select GSTR-3B
3. Declare your liabilities and ITC claims in
Section 3.1 and 4 respectively by clicking on the tiles and furnishing the
required information. Transitional ITC cannot be claimed in GSTR 3B. It
can be claimed only through TRANS 1 and TRANS 2.
4. Enter details of interest, if payable, in
Section 5.1. Late fee will be computed by the system
5. Click on Save GSTR-3B After
you save the data, submit button will get enabled. Please note
that after submit, no modification is possible. Hence ensure that details are
filled correctly before clicking on Submit button.
6. On clicking Submit GSTR-3B button,
System will post (debit) the self-assessed liabilities including system
generated late fee in Liability Register and credit the claimed ITC into ITC
ledger.
7. After this the Payment of Tax tile
will be enabled, please click it and declare your payment details to pay the
taxes and offset the liability.
8. Click CHECK BALANCE button to view the balance available for
credit under Integrated Tax, Central Tax, State
Tax and Cess. (This includes transitional credit also, if
TRAN-1 and 2 are submitted). This will enable you to check the balance before
making the payment for the respective minor heads. The balance is also
displayed when the mouse is hovered on the applicable data entry field in payment
section.
9. Please fill out the section that specifies how
you wants to set-off your liabilities using a combination of
Cash and ITC.
1. System checks if you have sufficient Cash/ITC
balance.
2. It also checks if the Reverse charge
liabilities are set-off only through CASH.
3. System also checks if all liabilities are
set-off. Part payment is not allowed in GSTR-3B. Hence, ensure sufficient
balance in Cash and ITC Ledger to Offset liability
4. In case of ITC utilizations, the system checks
the prioritization rules viz. IGST Credit has to be first utilized for paying
IGST liability and remaining for CGST liability and thereafter SGST
liability; SGST credit has to be first used for paying SGST liability and
then IGST liability; CGST Credit has to be first used for CGST liability and
the remaining for IGST Liability; SGST credit cannot be used for paying CGST
liability and CGST credit cannot be used for paying SGST liability
5. Transition ITC, if available in ITC
ledger, can be used for payment of liabilities of GSTR 3B
10. Click the OFFSET LIABILITY button
to pay off the liabilities
11. Click on declaration statement
12. Select Authorized Signatory filing the Form
13. Click on File GSTR-3B button with DSC or EVC
14. Message for successful filing will appear and
Acknowledgement will get generated
Article courtesy - Profitbooks
