What is GSTR-3B

What is GSTR-3B?

• Your outward supplies (sales or services you provided).
• Your inward supplies (purchases or services you received).
• The GST you owe (output tax) and the GST credit you can claim (input tax credit, or ITC).
• The net tax you need to pay to the government after adjusting the credit.

• All regular GST-registered businesses (except those under the Composition Scheme or certain specific cases like Input Service Distributors or non-resident taxpayers).
• Even if you had no transactions in a month, you still need to file a nil return.

1. Outward Supplies (Sales):
   • Details of taxable sales (goods or services) and the GST collected (CGST, SGST, or IGST).
   • Includes zero-rated supplies (like exports) and exempt/nil-rated supplies.
2. Inward Supplies (Purchases):
   • Details of purchases where you paid GST and can claim ITC.
   • You report the GST you’re eligible to claim as a credit.
3. Input Tax Credit (ITC):
   • The GST you paid on purchases that you can use to offset the GST you owe on sales.
   • You also report any ITC you’re reversing (e.g., if you used goods for non-business purposes).
4. Tax Payable:
   • The total GST you owe (output tax minus ITC).
   • If your ITC is more than your output tax, you carry forward the excess credit.
5. Tax Payment:
   • Details of the tax you’re paying in cash or using ITC.
   • Includes any interest or penalties, if applicable.

When is GSTR-3B Filed?

• Deadline: Usually the 20th of the next month for the previous month’s transactions (e.g., June 20, 2025, for May 2025, as mentioned in your GST compliance list).
• For businesses under the QRMP scheme (Quarterly Returns Monthly Payment), the deadline may vary slightly, but most still file GSTR-3B monthly.

How to File GSTR-3B?

1. Log in to the GST Portal (www.gst.gov.in) (www.gst.gov.in).
2. Fill in the details in the GSTR-3B form (sales, purchases, ITC, tax payable).
3. Verify the details and submit the return.
4. Pay any tax owed (if not fully covered by ITC) through the portal.
5. File the return with a digital signature or EVC (Electronic Verification Code).

Why is GSTR-3B Important?

• Compliance: Filing GSTR-3B on time keeps you compliant with GST laws and avoids penalties (₹50/day for regular returns, up to ₹5,000, as of 2025).
• Tax Payment: It ensures you pay the correct GST to the government.
• Input Tax Credit: It allows you to claim credit for GST paid on purchases, reducing your tax burden.
• Audit Trail: It helps the government track your GST transactions and ensures transparency.

• Accuracy: Double-check your sales and purchase details to avoid errors. Mistakes can lead to notices from the GST department.
• Form 26AS Link: GSTR-3B details should match your Form 26AS (for TDS) to avoid discrepancies.
• No Revisions: Once filed, GSTR-3B can’t be revised, so be careful before submitting.
• Late Filing: If you miss the deadline, you’ll face late fees and interest (18% per year on unpaid tax).

• You sold goods worth ₹1,00,000 and collected ₹18,000 GST (18% GST rate).
• You bought supplies worth ₹50,000 and paid ₹9,000 GST.
• In GSTR-3B, you report:
  • Output tax (GST on sales): ₹18,000.
  • Input tax credit (GST on purchases): ₹9,000.
  • Net tax to pay: ₹18,000 – ₹9,000 = ₹9,000 (in cash or from ITC balance).

 

Late Fee & Penalty for GSTR-3B