How to File GSTR 3B Return
How to File GSTR 3B
GSTR 3B Return must be filed all persons having GST registration before 20th August and 20th September. Once GSTR 3B returns are filed in August and September, the normal filing of GSTR-1, GSTR-2 and GSTR-3 will begin from October 10th. In this article, we look at the procedure for filing GSTR 3B return on the GST Common Portal.
Import of E-way Bill Data
It is essential for taxpayers to validate the data of their transactions before proceeding with the process of filing returns, as it saves time and unnecessary data entry. To cater to this purpose, the GST portal has now been integrated with the E-way Bill Portal (EWB). The integration enables the users to import the B2B and B2C invoice sections and the HSN-wise-summary of outward supplies section. Using these details, the taxpayers may verify the data and complete the filing.
The feature has been introduced considering the major data gaps between self-declared liability in Form GSTR 1 and Form GSTR 3B. A similar rule also applies to Input Tax Credit (ITC) claimed in GSTR 3B, as it could be compared with the credit available in Form GSTR 2A.
Data validation and comparison can be pursued through the following tabs of the portal:
- Liability other than export/reverse charge
- Liability due to reverse charge
- Liability due to export and SEZ supplies.
- ITC credit claimed and due
On a more precise note, the newly launched facility takes away the taxpayer’s need to make specifications connected with the e-way bill transactions specified in GSTR 3B as it allows the taxpayers to import data in Form GSTR 1 for all invoices for which the e-way bill has been generated. The particulars so imported would include the details of supplier, receiver, invoice number, the date of invoice, the type and quantity of goods, HSN Code, etc. These details are then transferred to the GST portal and classed into three categories to be used in GSTR 1 – namely, Business to Business Supplies (B2B), Business to Consumer (B2C) supplies (covering values of above Rs. 2.5 lakhs) and HSN (Harmonized System of Nomenclature Code for goods and services) wise consolidated supply data.
GSTR 3B Format
In case you would like to file GSTR 3B return automatically using LEDGERS GST Software, you can download the excel file below, prepare invoice details online, upload it into LEDGERS and file GSTR 3B return.
Before filing GSTR 3B return on the GST portal, the taxpayer must prepare the following information. As offline tool or API access has not been provided by the Government for filing GSTR 3B Return, the only way to file GSTR 3B is through the Government Portal.
Step 1: Prepare details of outward taxable supplies
GSTR 3B Details of Outward Supplies
In the first table, details of outward supplies and inward supplies liable to reverse charge must be provided. You can prepare this information by compiling details from all sales invoices issued during the month of July for GSTR 3B return due in August. In case you are using LEDGERS GST software, this information will be auto-populated for you.
Outward taxable supplies (other than zero rated, nil rated and exempted)
In this row, you will have to provide information about all invoices issued by the company that is NOT zero rated, nil rated and exempted. Hence, this row will contain details of all invoices for which GST was levied. The information about GST must be broken down further into taxable value, integrated tax, central tax, state tax and cess.
In the field for taxable value, mention the total bill amount. If IGST was payable on the taxable value, mention the same in the field for integrated tax. If CGST and SGST was applicable, it must be mentioned in the fields for central tax and state tax. Finally, if any cess was applicable, it must be mentioned in the GST cess field.
Important: The supplier is liable for payment of GST on the issuance of invoice, so the fields need to be completed based on the invoices issued and not based on payment received.
Outward taxable supplies (zero rated )
Exports and sales to SEZ units are zero rated. Hence, in this row details relating to exports and supplies made to SEZ units must be mentioned. As mentioned above, the details must be categorised by taxable value, integrated tax, central tax and cess.
Other outward supplies (Nil rated, exempted)
In this field, Nil rated and exempted supplies must be mentioned. Hence, goods or services which attract nil or 0% GST rate should be mentioned. As IGST, CGST and SGST component are not be applicable for exempt supplies, it would be zero, while the taxable value of such invoices issued must be mentioned.
Inward supplies (liable to reverse charge)
In this row, details of all inward supplies for which the business is liable to pay GST must be mentioned. Inward supplies liable for reverse charge are transactions wherein the recipient of the supply is made liable for payment of GST. You can break down inward supplies liable for reverse charge by taxable amount, integrated tax, central tax, state tax and cess.
Non-GST outward supplies
Some goods like petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel have been kept out of GST. Details of outward supplies of such goods must be mentioned in this row with details of taxable amount.
Step 2: Prepare supplies to unregistered persons, composition dealers and UIN holders
Supplies made to Unregistered Persons
In this table, inter-state supplies made to unregistered persons must be provided. Hence, aggregate level details of all B2C transactions would be listed here. As this table is a breakup of supplies shown in the above table, the value in the first table would always be higher.
In supplies made to unregistered persons, the amount of taxable value and integrated tax must be mentioned by State. Based on the number of states the taxpayer made supplies, the rows can be increased.
Supplies made to Composition Taxable Persons
In this table, supplies made to composition taxable persons must be mentioned along with state, taxable value and amount of integrated tax. Composition taxable persons are persons having GST registration but not eligible to collect GST.
Supplies made to UIN holders
UIN or GST Unique ID is provided to Consulates, Embassies and UN Bodies. In case the taxpayer made supplies to UIN holders outside of the state, such details must be provided in this row.
Important: This table contains details of inter-state supplies ONLY. Hence, only if supplies were made outside of the state, then information must be provided in this table. If all the supplies were intra-state, then this table would be filled with zeros.
Step 3: Prepare details of input tax credit
Persons registered under GST are eligible to avail input tax credit under GST for setting off GST liability. To avail input tax credit, the taxpayer must properly enter purchases invoices and track expenditure. In LEDGERS, if you had updated all your purchase invoice details, the following table would be auto populated.
Input Tax Credit Available from Import of Goods
Import of goods is subject to levy of IGST on import. Taxpayers registered under GST can claim input tax credit for IGST paid on imports. In this table, details of all import of goods for which GST under IGST, CGST, SGST and Cess paid along with customs duty must be mentioned.
Input Tax Credit Available from Import of Services
Import of services into India is also subject to levy of IGST. In this row, details of import of services for which IGST was paid must be mentioned.
Inward Supplies Liable to Reverse Charge
Some types of inward supplies like OIDAR services are liable for reverse charge, wherein the recipient of the goods or service is liable for payment of GST. Such inward supplies wherein the taxpayer is liable for payment of GST must be mentioned here.
Inward Supplies from ISD
In this row, input tax credit availed from input service distributors must be mentioned. Input service distributors can be setup by taxpayers to distribute input tax credit. This row would be applicable only for taxpayers who have registered as an input service distributor.
All Other Input Tax Credit
This row would have to be completed for most taxpayers who purchased or received invoices for goods and services during the month of July. Based on the purchases, the details of integrated tax, central tax, state tax and cess paid by the taxpayer must be provided. To complete this field, it is important to compile all invoices received and calculate the amount of GST tax paid in the month of July.
Input Tax Credit Reversed
Input tax credit cannot be availed fully for certain supplies which are used partly for business purpose and partly for other purposes. For such input tax credit must be reversed as per Rule 42 and Rule 43 of the CGST rules. Details of input tax credit so reversed must be provided in this row.
All Other Input Tax Credit Reversed
In case any other input tax credit is reversed for any other reason, details of such reversal can be provided in this row with break up of integrated tax, state tax, central tax and cess.
Net Input Tax Credit Availed
Based on the information provided above, net input tax credit available to the taxpayer is calculated automatically in row C.
Ineligible Input Tax Credit
Certain items like food, beverages, life insurance, health club memberships and more are ineligible for GST input tax credit. Details of such items that were not eligible for input tax credit must be mentioned in row D.
Step 4: Prepare Inward Supplies Exempt from GST
In this table, details of inward supplies that were exempt from GST must be provided.
In the first row, the total value of all supplies received from a composition scheme taxable person + purchases of goods or services that are exempted from GST + goods and services purchased with nil GST rate must be provided. The details must be divided between inter-state supplies and intra-state supplies.
In the second row, details of purchases of all non-GST goods and services must be mentioned, if any. For most taxpayers, this row would be nil.
Step 5: Prepare details of GST paid
In this table, details of tax payable and GST tax paid must be provided by the taxpayer. The Government portal, auto-populates the tax payable based on the infromation provided in the previous tables. The total tax payable by the taxpayer can also be calculated by adding all integrated tax, central tax, state tax and cess payable. From the total
From the total tax payable, the input tax credit available calculated in step 3 would be auto-populated on the GST portal. In case the taxpayer paid any GST, then details of such taxpayment can be provided in column 8. Interest and late fee would be zero if GSTR 3B if filed on time with GST payment.
Step 6: Details of TDS and TCS
In this table, the input has been disabled on the GST portal as TDS and TCS provisions have not come into effect. Hence, taxpayers need not worry about calculating TDS or TCS for the GSTR 3B return to be filed in August.
Step 7: Filing GSTR 3B on GST Portal
Once the above details are prepared manually or through a GST software, GSTR 3B return can be filed on the GST portal within a few minutes. In case you use LEDGERS GST software, we will calculate all of the information above based on the invoices and purchase invoices you had generated. Hence, you can simply enter the information provided by us into the GST Portal and click on submit.
In case you do not use LEDGERS, you would have to prepare the above information manually to file the same on the GST portal.
LEDGERS GST Software
Using LEDGERS GST software you can prepare and file GSTR 3B return in a few clicks. In case you are not using LEDGERS GST Software, you can follow the steps below to calculate and file GSTR 3B return.