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How-to-File-GSTR-3B

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 generated by the E-way bill. 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. After providing all the required information, the details transfers to the GST portal and classed into three categories for GSTR 1 – namely, Business to Business Supplies (B2B), Business to Consumer (B2C) supplies (covering values of above Rs.2.5 lakh) 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.

Download GSTR 3B Excel Format

Information Preparation

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 SuppliesGSTR 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, the registered user shall 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

GSTR 3B - Supplies made to unregistered persons
GSTR 3B – Supplies made to unregistered persons

Supplies made to Unregistered Persons

In this table, inter-state supplies made to unregistered persons must be provided. Hence, the portal shall list all the aggregate level details of all B2C transactions. As this table shows the breakup of supplies shown in the above table, the value in the first table shall always exceed from the value of other tables.

In supplies made to unregistered persons, the concerned State should mention the amount of taxable value and integrated tax. The taxpayer can alter the rows based on the number of states the taxpayer provided supplies to the customers.

Supplies made to Composition Taxable Persons

In this table, the taxpayer shall mention the supplies made to composition taxable persons 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.

GSTR 3B Input Tax Credit Availed
GSTR 3B Input Tax Credit Availed

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 the input tax credit for IGST paid on imports. In this table, the taxpayer should mention all the details of all import of goods for which GST under IGST, CGST, SGST and Cess paid along with customs duty.

Input Tax Credit Available from Import of Services

Import of services into India is also subject to levy of IGST. In this row, the taxpayer should mention the details of the amount paid for the import of services for IGST.

Inward Supplies Liable to Reverse Charge

Some types of inward supplies like OIDAR services are liable for the reverse charge, wherein the recipient of the goods or service is liable for payment of GST. The taxpayer shall mention the details of any GST payment liable for any such inward supplies.

Inward Supplies from ISD

In this row, the taxpayer should mention the input tax credit availed from input service distributors. Hence, the taxpayers can allot Input service distributors 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

Any taxpayer who purchased or received the invoices for goods and services during the month of July shall provide details on this row. The taxpayer shall provide information integrated tax, central tax, state tax and cess paid based on the details of the taxpayer. 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

The 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, the taxpayer shall reverse the input tax credit 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 of reversal of input tax credit for any other reason, the user can provide the details of such reversal 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, the GST Portal automatically calculates the net input tax credit available to the taxpayer 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

GSTR 3B Inward Supplies Exempt from GST
GSTR 3B 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 taxpayer shall provide the total value of all supplies received from a composition scheme taxable person + purchases of goods or services exempted from GST + goods and services purchased with nil GST rate. The individual shall divide the details between inter-state supplies and intra-state supplies.

In the second row, the taxpayer can mention the details on purchases of all non-GST goods and services, if any. For most taxpayers, this row would be nil.

Step 5: Prepare details of GST paid

GSTR 3B Payment of Tax
GSTR 3B Payment of Tax

In this table, the taxpayer shall provide the details of tax payable and GST tax paid. The Government portal, auto-populates the tax payable based on the information provided in the previous tables. The taxpayer can also calculate the total tax payable by adding all integrated tax, central tax, state tax and cess payable.

After providing the total tax payable, the GST Portal auto-populates the input tax credit available after calculating in Step 3. In case the taxpayer paid any GST, then details of such tax payment 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

TDS & TCS Credit
GSTR 3B TDS & TCS Credit

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

After providing the above-mentioned details manually or through a GST software, the user can file the GSTR 3B on the GST portal within a few minutes. In case you use LEDGERS GST software, the software shall 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.

GST Software
GST Software

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