Most Indian businesses have started complying with GST after 1st July 2017. Now, invoices and bills are being raised in the GST format. In order to make GST rollout smoother, Government has relaxed the GST Return Filing for 2 months.
Tax authorities have introduced a simple return form called as GSTR 3B. This has to be used only for the month of July and August. Every registered tax payer (Except for composition scheme) needs to file a separate GSTR 3B for each GSTIN they have.
This is more like a self-declaration return and the tax payer is not required to provide invoice level information in this form. Only total values for each field have to be provided.
As per earlier notification, businesses were required to file GSTR-1 by 10th of August, GSTR-2 by 15th of August and finally GSTR-3 by 20th of August. However, GST council revised the rules and introduced GSTR-3B form for filing returns for July and August.
GSTR-3B for July 2017 is due on 20th August. (Update – Government has extended the due date to 25th August 2017)
GSTR-3B for August 2017 is due on 20th September.
GSTR-3B is not applicable starting the month of September, regular returns in GSTR-1, GSTR-2 and GSTR-3 have to be filed from September.
Tax payers need to follow the regular process from September onwards. Once the monthly returns are filed, GSTR-3 will be matched against GSTR-3B and any difference will be refunded or needs to be paid as the case may be.
Good part is – no penalty or late fees will be charged on the difference.
Who Needs to File GSTR-3B?
Every person registered under GST needs to file GSTR-3B return. In case you have multiple GSTNs, separate GSTR-3B needs to be filed for every GSTN.
Even if there are no transactions during the month, registered businesses still need to file NIL GSTR-3B.
Following registrants do not have to file GSTR-3B:
- Input Service Distributors
- Businesses registered under GST Composition Scheme
- Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves.
- Non-resident taxable person
Why is it important to file GSTR 3B?
Since GSTR 3B is temporary in nature, some businesses might think that its not that important. However, you should know following things:
- Not filing GSTR-3B may invite penalty of 18% per year
- GSTR 3B is required for preparation of filing further GST returns.
- Same data can be used to file GSTR1 in September.
10 Important Points About GSTR-3B
Before we take a deeper dive and understand this form, let’s first take a look at few important points that you should know:
- GSTR 3B needs to be separately filed for each GST registration number.
- It needs to be filed online only in the common portal i.e. www.gst.gov.in, there is no any offline utility provided which can be filled and uploaded into the system.
In the post login mode, one can access it by going to Services > Returns > Returns Dashboard. After selecting the financial year and tax period, GSTR 3B, (if applicable), in the given period.
- It is needed to be filed even if it is a nil return.
- Once filed, the form shall be final and there is no provision for revision of the return once filed. Any revision has to be done through while filing of GSTR -1, GSTR -2, GSTR -3.
- Upon generation of GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system will update the delta (difference) between GSTR 3B and GSTR 3 automatically. In case of an upward revision of liabilities, one will be liable to pay differential tax along with interest on the (differential) amount.
- There is no legal provision in the law through which one can claim the transitional credit in GSTR – 3B return. Therefore, closing balance of transitional credit in returns and in stock must not be considered while filing form GSTR 3B.
- Refund cannot be claimed under GST-3B since invoice-wise details in form GSTR 1 must have to be submitted for the matching of invoices and for processing of the refund claim.
- All migrated tax payers need to furnish all the information required under REG- 26 so as to file GSTR-3B. Therefore, if the details of enrolment for registration are not fully or properly submitted, then such person may not be able to file the GSTR-3B return.
- Composition Dealers are not required to file GSTR-3B. They will be required to file quarterly return only.
- If there is any tax payable then payment of such tax is mandatory for filing of form GSTR-3B. In other words, GSTR-3B return cannot be filed without full payment of the tax due.
Below is the format of GSTR-3B.
How To Generate GSTR-3B Report From ProfitBooks
No matter whether you are a trader or a manufacturer, you will have to file returns mandatorily. It is a matter of perception when it comes to defining the whole return filing process, as some may treat it as cumbersome or some may feel happy with the level of automation available. Draft GST return format provided by government can easily confuse a small business owner who doesn’t have any accounting knowledge.
We’ve made it very easy to generate GSTR-3B data from ProfitBooks. We assume that you have updated your GSTN in the system and created your invoices and purchases in GST format.
Here are the steps:
Go to GST -> GSTR 3B
Click on ‘Populate Report’ button for the month you wish to generate GSTR 3B for.
You’ll see the data for the selected month. Use this information to file your GSTR-3B on GSTN portal.
How To File GST Returns Online?
Please follow these steps to file GSTR-3B on GSTN portal. This guide has been released by Government on GSTN portal.
- After login to GSTN portal, select Return Dashboard
- Select Financial Year 2017-18 and Month July. Click Search and Select GSTR-3B
- Declare your liabilities and ITC claims in Section 3.1 and 4 respectively by clicking on the tiles and furnishing the required information. Transitional ITC cannot be claimed in GSTR 3B. It can be claimed only through TRANS 1 and TRANS 2.
- Enter details of interest, if payable, in Section 5.1. Late fee will be computed by the system
- Click on Save GSTR-3B After you save the data, Submit button will get enabled. Please note that after submit, no modification is possible. Hence ensure that details are filled correctly before clicking on Submit button.
- On clicking Submit GSTR-3B button, System will post (debit) the self-assessed liabilities including system generated late fee in Liability Register and credit the claimed ITC into ITC ledger.
- After this the Payment of Tax tile will be enabled, please click it and declare your payment details to pay the taxes and offset the liability.
- Click CHECK BALANCE button to view the balance available for credit under Integrated Tax, Central Tax, State Tax and Cess. (This includes transitional credit also, if TRAN-1 and 2 are submitted). This will enable you to check the balance before making the payment for the respective minor heads. The balance is also displayed when the mouse is hovered on the applicable data entry field in payment section.
- Please fill out the section that specifies how you wants to set-off your liabilities using a combination of Cash and ITC.
- System checks if you have sufficient Cash/ITC balance.
- It also checks if the Reverse charge liabilities are set-off only through CASH.
- System also checks if all liabilities are set-off. Part payment is not allowed in GSTR-3B. Hence, ensure sufficient balance in Cash and ITC Ledger to Offset liability
- In case of ITC utilisations, the system checks the prioritization rules viz. IGST Credit has to be first utilised for paying IGST liability and remaining for CGST liability and thereafter SGST liability; SGST credit has to be first used for paying SGST liability and then IGST liability; CGST Credit has to be first used for CGST liability and the remaining for IGST Liability; SGST credit cannot be used for paying CGST liability and CGST credit cannot be used for paying SGST liability
- Transition ITC, if available in ITC ledger, can be used for payment of liabilities of GSTR 3B
- Click the OFFSET LIABILITY button to pay off the liabilities
- Click on declaration statement
- Select Authorized Signatory filing the Form
- Click on File GSTR-3B button with DSC or EVC
- Message for successful filing will appear and Acknowledgement will get generated
ProfitBooks is a popular GST compliant accounting software which can help you to easily file GST returns online. It does auto-reconciliation of mismatches and gives you a real time report of the differences between you and your customer/vendor. You can even create GST invoice in correct format.
We’ve just introduced our GST Return Filing service! Our team of experienced CAs can help you file all GST returns (Right from GSTR 3B to GSTR 9) so that you can focus on growing your business.
Also try our simple GST software to start generating GSTR 3B form.Try ProfitBooks Free Today