What is GSTR-3B?: Return Filing, Eligibility, Due Dates, & Documents Required

  • Setindiabiz Team
  • December 22, 2023
What is GSTR-3B?

This comprehensive blog provides readers with valuable insights into GSTR-3B returns filing, and crucial compliance under the GST Act. Covering key aspects such as the purpose of GSTR-3B, eligibility criteria, and due dates the article serves as an essential guide for businesses navigating the complexities of GST compliance and regulations. Readers will gain a clear understanding of the importance of timely GSTR-3B filing, along with practical information on required documents and the potential impact of late submissions, ensuring they can meet their GST obligations and avoid penalties.

BRIEF SUMMARY
Goods and Services Tax (GST) is a comprehensive tax system implemented in India to replace multiple indirect taxes levied by the central and state governments. GST aims to simplify the taxation process and improve tax compliance by bringing all indirect taxes under a single tax umbrella. Under the GST regime, businesses are required to file various returns, including GSTR-3B, to report their tax liability to the government. In this blog, we will discuss the due date for filing GSTR-3B, eligibility criteria, the consequences of not filing, and the documents required for filing the return.

What is GSTR-3B?: Key Purposes of GSTR-3B Filing

GSTR-3B is a monthly summary return of inward and outward supplies that taxpayers registered under the Goods and Services Tax (GST) Act in India are required to file. It is filed as an interim return before the due dates of filing GSTR-1 and GSTR-2. While GSTR-1 is the monthly return that taxpayers file to report their outward supplies of goods and services, GSTR-2 is the monthly return that taxpayers file to report their inward supplies of goods and services. GSTR-3B is filed as a summary of both these returns. Filing GSTR-3B is an important compliance requirement that helps taxpayers meet their GST obligations and avoid penalties for non-compliance. A complete list of key purposes for filing GSTR-3B has been mentioned below:
Key Purposes of GSTR-3B Filing
  1. Payment of tax: GSTR-3B serves as a self-assessment or self-declaration of the tax payable by the taxpayers. Through GSTR-3B, taxpayers can calculate their tax liability for a particular month and make payment accordingly. This helps the government in the timely collection of tax revenue and ensures that taxpayers are meeting their tax obligations regularly.
  2. Compliance with the law: Under the GST regime, every registered taxpayer is required to file GST returns, including GSTR-3B, within the prescribed time frame. GSTR-3B is an important compliance requirement that helps taxpayers avoid penalties for non-compliance. Failure to file GSTR-3B on time can lead to interest charges, late fees, and other penalties.
  3. Input Tax Credit (ITC) reconciliation: Another key purpose of filing GSTR-3B is to reconcile the input tax credit (ITC) claimed by the taxpayer with the data provided by their suppliers in GSTR-1 and GSTR-2. This helps to prevent ITC mismatch and ensures that taxpayers are claiming only the ITC that they are entitled to. Any difference in the ITC claimed by the taxpayer and that reported by their suppliers can be corrected through GSTR-3B.
  4. GST return filing: GSTR-3B is an interim return that taxpayers must file every month, before the due date of GSTR-1 and GSTR-2. GSTR-1 is the monthly return that taxpayers file to report their outward supplies of goods and services, while GSTR-2 is the return that taxpayers file to report their inward supplies of goods and services. Filing GSTR-3B on time is a prerequisite for the filing of other GST returns, making it an essential part of the GST compliance process.
  5. Record keeping: GSTR-3B serves as a record of the taxpayer’s tax liabilities, ITC, and other details. It helps taxpayers keep track of their tax compliance and ensure accurate reporting of their GST transactions. GSTR-3B data is used by the government to assess taxpayer compliance and can also be used by taxpayers for their own internal record-keeping purposes.

GSTR-3B Eligibility & Exemptions

All taxpayers registered under the Goods and Services Tax (GST) system in India are required to file GSTR-3B every month, regardless of whether they have made any sales or purchases during that month. This includes GST regular taxpayers, GST composition scheme taxpayers, and taxpayers registered under the GST Act for deductions under Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) as well. Hence, if you are a GST registered person, you are eligible for filing GSTR-3B.

GSTR-3B for Monthly vs Quarterly GST Returns

The Government has provided a slight flexibility in the filing of GSTR-3B for Quarterly Filing of GST Returns under the QRMP Scheme. QRMP stands for Quarterly Returns and monthly payment, implying that businesses enrolled in this scheme can file their returns quarterly in GSTR-3B instead of filing it monthly, thereby reducing their overall burden of compliance on taxpayers.

Exemptions for GSTR-3B Filing

There are no exemptions for filing GSTR-3B in India. All taxpayers registered under the Goods and Services Tax (GST) system are required to file this return every month, regardless of the turnover of their business or the nature of their supplies. However, there are certain situations where a taxpayer may not be required to file GSTR-3B. For instance, if a taxpayer has not made any outward supplies (sales) and has not received any inward supplies (purchases) during the month, they may not be required to file GSTR-3B.
This is because GSTR-3B is a summary return that requires taxpayers to report their monthly sales, purchases, and input tax credit (ITC) details. Another situation where a taxpayer may not be required to file GSTR-3B is if they have applied for cancellation of their GST registration. In such cases, the taxpayer may be required to file a final return in GSTR-10 instead of regular return in GSTR-3B, which will be due within three months from the date of cancellation.
However, it is important to note that these situations are exceptions and do not qualify as exemptions from filing GSTR-3B. In general, all GST registered persons in India are required to file GSTR-3B every month, even if there is no business activity during the period. Failure to file GSTR-3B can attract penalties and interest under the GST law.

Details and Documents Required for Filing GSTR-3B

To file GSTR-3B in India, taxpayers are required to provide certain details and furnish relevant documents related to their sales, purchases, and input tax credit (ITC) for the month. The table below contains the details and documents required for filing GSTR-3B.
List of Documents Key Purpose
GSTIN
Every GST-registered person in India is assigned a unique 15-digit GSTIN, which is required to file GSTR-3B.
Turnover Details
Taxpayers are required to provide the details of their taxable supplies, exempt supplies, and exports made during the month.
Input Tax Credit details
Taxpayers are required to report the ITC availed on their purchases, including details of invoices received, tax paid, and any adjustments made for ineligible credit.
Payment of Tax
Taxpayers are required to pay the tax due on their outward supplies and report the same in GSTR-3B. They can utilize the ITC available in their electronic credit ledger to pay the tax due.
Other Details
Taxpayers may also be required to provide other details such as the type of tax payment (self-assessment or payment through TDS/TCS), any late fees or interest payable, and details of any previous adjustments made.

When Should You File GSTR-3B?: GSTR-3B Due Date

The due date for filing GSTR-3B for a particular month is the 20th of the following month. For instance, If a business in India is required to file GSTR-3B for January 2023, the due date for filing the return would be February 20, 2023. However, if the filing is being done under the QRMP scheme, then the due date is the 22nd or 24th day of the month immediately following the end of the quarter. The option between 222nd and 24th varies from state to state.
GST-registered businesses would need to report their taxable sales, input tax credit availed, and tax paid on their outward supplies in GSTR-3B, and ensure that they have all the relevant documents such as sales invoices, purchase invoices, bank statements, and other financial records to support their claims. It is important to file GSTR-3B on time to avoid penalties and additional interest charges.

Penalty For Late Filing of GSTR-3B

GSTR-3B is an important return that must be filed by GST registered persons in India. Failing to file GSTR-3B on time can result in several consequences, including late fees, interest, penalties, and loss of input tax credit. The consequences can also include legal action if a taxpayer repeatedly fails to file GSTR-3B or deliberately evades tax. So, it is crucial for taxpayers to file GSTR-3B on time and maintain compliance with GST regulations. Here is a list of several consequences for not filing GSTR-3B on time or within the due date.
  1. Late fee: If a registered person fails to file GSTR-3B by the due date, a late fee of Rs. 50 per day of delay (Rs 20 for taxpayers with nil tax liability) is charged for each day of delay. The maximum late fee if the aggregate annual turnover is up to Rs.1.5 crores, will be Rs.2,000 (Rs.500 for taxpayers with nil tax liability), if the turnover is up to Rs.5 crores will be Rs.5,000, and if the turnover is beyond Rs.5 crores will be Rs.10,000. 
  2. Interest: If the tax liability is not paid by the due date, interest is charged at the rate of 18% per annum. This interest is calculated on the tax amount due from the due date of filing the return until the date of payment.
  3. Input Tax Credit (ITC) loss: If GSTR-3B is not filed within the due date, the input tax credit (ITC) for that month is forfeited. This means that the taxpayer will not be able to claim the ITC for that month in future returns.
  4. Legal action: If a taxpayer repeatedly fails to file GSTR-3B on time or deliberately evades tax, legal action can be initiated against them under the GST law.
  5. Barred from filing GSTR-1: Starting from 1st January 2022, if a taxpayer who files taxes on a monthly basis fails to comply with tax filing requirements, such as not filing GSTR-3B for the previous month, then they will not be permitted to file their GSTR-1 for the following month until the GSTR-3B for the previous month is filed. The same rule applies for taxpayers who have chosen the Quarterly Return Monthly Payment (QRMP) Scheme and do not file their GSTR-3B quarterly. In such cases, the taxpayer will not be permitted to file the Invoice Furnishing Facility (IFF).

In conclusion, GSTR-3B is an essential return that must be filed by GST registered persons in India. Failing to file GSTR-3B on time can result in various consequences, such as late fees, interest, penalties, and loss of input tax credit. Therefore, it is essential to file GSTR-3B on time and maintain compliance with GST regulations. We hope that this blog has provided you with useful information about the due date for filing GSTR-3B, eligibility criteria, consequences of not filing, and the documents required for filing the return. If you have any questions or feedback, please feel free to leave a comment below.

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