GSTR 3B Guide : Pending Filing & Late fees

gstr 3b format

Form GSTR 3B under GST filing is an important & a main return filing form, given by the Government under the GST Regime. 

This form is used to release the monthly Tax Liabilities & will hold its significance until the implementation of the New GST Return System, in September (as per the most recent update)

Filing of this form is mandatory & non-compliance can attract penalties.

In this article we will see the what, how, when & who of this Form. Additionally, we have covered the latest updates on GSTR 3B, its penalties & levy of late fees.

What is Form GSTR 3B?

Form GSTR 3B is currently the main return filing form. This form is a consolidated summary of the filer’s Sales & Purchase Returns that is their GSTR-1 & GSTR-2A.

The tax liabilities are identified & released with the help of this form through either Electronic Cash Ledger or Electronic Credit Ledger. 

While filing this form & releasing the tax liabilities you can utilize the ITC that you are eligible for & have claimed, and adjust it with your tax liability.

The rest of the balance amount can be paid by you in Cash.

You need not declare your transactions in this form invoice-wise, but you need to be very careful even while entering the values, as errors can change the value of tax liabilities that you will have to pay in the subsequent Tax period.

Errors in GSTR 3B can also affect your annual return filings. The late filing of this form will attract penalties, late-fees & interests. 

Structure of Form GSTR 3B & How to file GSTR 3B?

Form GSTR 3B is divided into 6 parts, each part contains one or more tables where you are required to fill the relevant detail.

Make sure to be extra careful while filling the details even though you only have to fill the values you must be very sure to enter correct values. 

This is important also because there is no provision of revising the form GSTR 3B once filed or submitted. For any rectifications, you will have to mention & amend it the GSTR 3B of the subsequent month.  

Once you have filled all the details you must sign the Form with an authorized signatory & then submit it on the common GST Portal before the GSTR 3B due date on a monthly basis.

Apart from the old traditional way, you can also form GSTR 3B through GSTHero. GSTHero is an advanced software solution that intends to make your interaction with GST smoother & better.

With advanced features & excellent user interface, you can file Form GSTR 3B in less time & fewer steps, accurately.

Following is the structure of Form GSTR 3B-

  1. GSTIN
  2. Legal Name of the Registered Person 

3.1 Details of Outward Supplies and inward supplies liable to reverse charge 

  • Outward taxable supplies (other than zero-rated, nil rated and exempted) 
  • Outward taxable supplies (zero-rated ) 
  • Other outward supplies (Nil rated, exempted) 
  • Inward supplies (liable to reverse charge) 
  • Non-GST outward supplies 

3.2 Of the supplies shown in 3.1(a) above, details of inter-State supplies made to unregistered persons, composition taxable persons, and UIN holders 

  • Supplies made to Unregistered Persons 
  • Supplies made to Composition Taxable Persons 
  • Supplies made to UIN holders
  1. Eligible ITC

(A) ITC Available (whether in full or part) 

  • Import of goods 
  • Import of services 
  • Inward supplies liable to reverse charge (other than 1 & 2 above)
  • Inward supplies from ISD 
  • All other ITC 

(B) ITC Reversed 

  • As per rules 42 & 43 of CGST Rules 
  • Others 

(C) Net ITC Available (A) – (B) 

(D) Ineligible ITC 

  • As per section 17(5) 
  • Others
  1. Values of exempt, nil-rated and non-GST inward supplies
  • From a supplier under composition scheme, Exempt and Nil rated supply 
  • Non-GST supply

6.1 Payment of tax

  • IGST
  • CGST
  • SGST
  • CESS

6.2 TDS/TCS Credit 

  • TDS
  • TCS

Who must file the Form GSTR 3B?

CBIC mandates all the taxpayers, who even had no transactions at all in the Tax period, to file Form GSTR 3B monthly before the due date.

Although some taxpayers are exempted from filing GSTR 3B due to having special types of Business transactions.

Following is the List of Taxpayers who need not file form GSTR 3B-

  • (ISD) Input Service Distributor
  • Dealers under Composition Scheme
  • TDS Deductors
  • TCS collector
  • OIDAR Provider (online information data access and retrieval)

What makes Form GSTR 3B so important? Monetary Impacts

gstr 3b form

GSTR 3B is currently one of the most important Return Forms in the GST Regime, being the major & solo source of collecting Revenue in the Form of Indirect Taxes.

It gets its significance from the fact that it can directly affect your Business in more than one way. We have listed down four ways GSTR 3B will impact your Business-

  • Tax Liability- You calculate & release your Tax liabilities through Form GSTR 3B. Now, calculating the right tax amount is important, as a business, you should neither pay extra tax which will impact your working capital, & nor short tax liability because you will eventually have to release the balance tax in the subsequent month before getting notice or penalty. 
  • Input Tax Credit– You adjust your Tax Liabilities with your ITC through Form GSTR 3B. You can save a great deal of working capital through ITC, the more tax liability is adjusted with the ITC the more working capital will be saved. Although the calculation of the eligible ITC amount is done in Form GSTR-2A, the adjustment process is carried out in Form GSTR 3B.
  • Annual Return Filings– The annual return filings are consolidated or aggregated summaries of all the Tax liabilities that your Business had in the entire year, as well as of the ITC that you claimed. While these final returns are being filed there must be no mismatching of the values while reconciliation. Also, claiming extra/ineligible credits or paying short/less amount of GST can attract trouble for your Business.
  • Penalties, Interests, Notices, & Scrutiny- The Annual returns are highly sensitive & will consider even the minute mistakes as errors. Such errors can & will attract Penalties, Interests, and even Notices & Scrutinies, in extreme cases.  

Non-Compliance, Old Unfiled GSTR 3B, Penalties & Late fees

gstr 3b

So, how does the compliance work in the case of Form GSTR 3B? Non or late filing of GSTR 3B can attract penalties as-

  • In the case of Tax Liability- Rs. 200 per day past the due date
  • In the case of Nil Returns- Rs. 100 per day past the due date

Then the Taxpayer will be required to pay interest at the rate of 18% per annum if they do not pay the GST.

This can add up & be a huge amount of tax filers who have not filed their tax returns for a long time, due to various reasons. 

Some taxpayers are still stuck in the transitional time, & hence have failed to file their GSTR 3B.

Natural Calamities, Loss in Business & Pandemics, etc. are also some reasons for delayed or not filing of GSTR 3B.

Although, in the recently conducted GST council Meeting this issue was raised & discussed considering that the Businesses are facing downfalls & losses due to lockdown & the spread of the pandemic.

The Government has announced relief measures for Small as well as Large Enterprises-

To wrap the GST filing pendency before annual return filing, the late fees have been waived off for unfiled GSTR 3B from July 2017 to January 2020, as-

  • Late Fees for Nil Returns- No or 0 Tax Liabilities
  • Late Fees for Normal Returns- A maximum of Rs. 500 per return.
  • Businesses having an annual turnover of Rs. 5 Crores or less, will not be charged with the 18% interest on not paying GST, if they file their Returns for February, March & April, before July 6th. Post that interest of 9% will be applicable till September 30th.

Businesses having an annual turnover of Rs. 5 Crores or less, will not be charged with any late fees or interests for the month of May, June & July, if the filing is done by September 

Conclusion

GSTR 3B will continue to be considered as the most important form till New GST Return System rolls out in September, as per the most recent notification.

In the New GST Return System, GST RET-1 will replace form GSTR 3B, though both forms have similar features, GST RET-1 will be more detailed.

The Government emphasizes on this form & has mandated taxpayers to file it monthly, as form GSTR 3B is the source for the government to collect revenue.

Hence taxpayers must be careful while filling the form, while also considering that GSTR 3B cannot be rectified.

GSTHero can help you here, click here to know more.

GSTHero is an authorized GST Suvidha Provider Trusted by Organizations & Tax Practitioners all over the country.

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About the AuthorGSTHero- Making Life Simple! GSTHero is the best GST filing, e-Way Bill Generation & E Invoicing Software in India. GSTHero is a government authorized GST Suvidha Provider. Both Businesses and Tax Practitioners can file GSTR 1, GSTR 3B, GSTR 9 and GSTR 9C with all supporting reports. 1 Click Auto Reconciliation & report-matching feature helps you in claiming up to 100% ITC and finds your GST Defaulting Suppliers. GSTR2A vs GSTR-3B, GSTR-1 vs GSTR-3B, 'GSTR-1, GSTR-2A & GSTR-3B' annual report matching is also provided by GSTHero.

GSTHero ERP Plugins provide 1 Click e-Way Bill & E-Invoice, Generation, Operation & Printing from your own ERP like Tally, SAP, Marg, Busy, Microsoft Dynamics, Oracle & others itself with high data security

The Article is written by Prachi Wankhede, who is a writer-editor at GSTHero and works in the finance & Indirect Taxation domain.

Disclaimer: This is sponsored article.