Deadline extended: Everything you want to know about GSTR-3B

What is GSTR 3B?

GSTR 3B is a simple return form introduced by the CBEC for the month of July and August. GSTR-1, GSTR-2 and GSTR-3 for the months of July and August will be filed in September. In the interim all registrants have to file GSTR-3B.
 

You must file a separate GSTR 3B for each GSTIN you have. Do note that you do not have to provide invoice level information in this form. Only total values for each field have to be provided.

Why is filing GSTR 3B important?
 

Filing GSTR 3B is mandatory for GST registrants.
 

Some portions of Part B of GSTR-3 will be automatically populated from GSTR 3B filed by you. If there is any discrepancy between the two you can correct your GSTR-3 later and deposit any taxes which are payable.

When is GSTR 3B due?
 

GSTR 3B for July 2017 is due on August 20. However, if you want to claim input tax credit of the old regime against your GST dues for July, you must file TRAN-1 before filing GSTR-3B. For businesses who want to claim this input tax credit of the old regime, due date for GSTR-3B is August 28. However, these businesses must deposit tax by 20th August. Any shortfall in tax discovered later, must be deposited by August 28 along with interest @18%.
 

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 for the month of September.

Who should file GSTR 3B?
 

Every person who has registered for GST must file the return GSTR 3B. This return form must be filed and submitted by you even if you do not have any transactions during the month of July and August.
 

However, the following registrants do not have to file GSTR 3B
 

•       Input Service Distributors
 

•       Composition Dealers
 

•       Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)
 

•       Non-resident taxable person

Step by Step details on 'how to file GSTR 3B'
 

Specify the month and year for which return is being filed
 

1. Provide GSTIN (you can use your provisional id as your GSTIN if you do not have a GSTIN)
 

2. Legal Name of the Registered Person [this field is auto populated after entering GSTIN]
 

3. Outward supplies and inward supplies on reverse charge i.e. Details where tax is payable by you

These details are further broken down into the following. For each of these you must provide, the total taxable value (total which has been invoiced). And then further break this up into IGST, CGST, SGST/UTGST and cess if any.  Do note that you do not have to provide invoice level detail here. Only the consolidated values for the month must be provided. You do not have to provide GST rate, only the total tax values.
 

(a) Outward taxable supplies – Do not include supplies which are zero rated, or have a nil rate of tax or are exempt from GST. These must be provided separately. Include only those supplies on which GST has been charged by you.
 

Value of Taxable Supplies = Value of invoices + value of debit notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices
 

Details of advances as well as adjustment of advances against invoices are not required to be shown separately.
 

(b) Outward taxable supplies (zero rated) – here include only those supplies on which GST rate is zero. Zero rated supplies are exports or supplies made to SEZ.
 

(c) Other outward supplies (nil rated, exempt) – include supplies which are exempt from GST or are nil rated. Nil rated supplies are those for which the GST rate is nil. Or which have been kept exempt from GST. For e.g. salt, puja samagri, curd, lassi, fresh milk. These goods are exempt from GST.
 

(d) Inward supplies (liable to reverse charge) – provide details of purchases made by from unregistered dealers on which reverse charge applies. In such cases you have to prepare an invoice to yourself and pay the applicable GST rate of tax.
 

(e) Non-GST outward supplies – details of any supplies made by you kept wholly out of GST. For eg, alcohol and petroleum products.

Under this head further break up of ‘Outward taxable supplies’ in the above table must be provided. Here you must mention the inter-state supplies which are made to
 

• unregistered persons
 

• composition dealers
 

• those who hold a UIN
 

UIN holders means those who have a Unique Identification Number instead of a GSTIN. These are specialized agencies of the UNO (United Nations Organisation) or an embassy. Or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947. Any other persons may also be notified by the Commissioner.

1. Eligible ITC

This is the detail required for input tax credit. It must be provided separately for IGST, CGST, SGST, UTGST and Cess. Only total values have to be reported and invoice level information is not required.

(A) ITC Available (whether in full or part) – This information must be broken down into ITC on:

• import of goods,
 

• import of services,
 

• inward supplies on reverse charge (other than the on import of goods and services reported above)
 

• inward supplies from your Input Service Distributor (ISD) basically your head office registered as an ISD under GST
 

• all other ITC

Input tax credit on closing stock is not required to be reported here.

(B) ITC Reversed

(1)    As per rules 42 & 43 of CGST Rules – These rules require that input credit must be reversed for goods and services, where they have been used partly for business and partly for other purposes, to the extent not used for business. Similarly, input credit reversal is also required where supplies include taxable, exempt and nil rated supplies. In the same manner, input credit related to capital goods used for business and other purposes, for taxable, exempt, nil rated supplies must also be reversed to the extent not used for business. Details formulae have been prescribed on how to go about doing this.

(2) Others – Any other ITC which has been reversed in the books by you.

(C)  Net ITC available (A) – (B) 

(D)  Ineligible ITC

(1)  As per Section 17(5) – Report credit which is entirely not available to you. 

(2) Others

1.  Provide values of exempt, nil rated, and non-GST inward supplies:  Here you have to report any purchases made by you of goods or services, which are from a composition dealer, are exempt, nil rated or not covered by GST at all. This information must be broken down into inter-state and intra-state.

2.

3.   Payment of Tax

 

 Under this section you have to report the final tax payable by you on taxable supplies made by you, which will match with 3.1.

(a) above. The amount is separately reported under IGST, CGST, SGST and UTGST. And also report the credit which has been availed against these. This amount is under 4(C). The balance tax must be deposited by you and appears under column 8. If any interest or late fee has been deposited that must also be reported.

6.2 Do note that for now no TDS or TCS have to reported or collected.

This section is not applicable for now.

Can you claim input tax credit of old regime in GSTR-3B?
 

Most businesses have opening input tax credit as on 1st July 2017. This is the credit businesses are allowed to carry to the GST regime from the old regime. The GST law says that one can take benefit of this input tax credit from the old regime only by filing transition forms. TRAN -1 and TRAN-2 are the transition forms which must be filed on the government website to transition credit of old regime to GST regime. Not availing opening credit means businesses will have to deposit more GST than they should. And this can negatively impact working capital of these businesses.
 

To help businesses take benefit of opening credit, the CBEC has allowed more time to file GSTR-3B. Let’s understand this in detail-
 

Want to avail opening input tax credit-
 

• Taxpayers who want to take benefit of opening credit can file TRAN-1 by 28th August 2017. TRAN -1 must be filed before GSTR-3B.
 

• File GSTR-3B by 28th August 2017. 
 

• Tax due must be deposited by 20th August, after considering opening credit.
 

• Any shortfall in tax discovered later must be paid along with interest @18% by August 28. 

Don’t want to claim opening input tax credit -
 

One can choose to file GSTR-3B by 20th August without filing TRAN-1 and such a person will not be able to claim opening input tax credit in the GSTR-3B return. They can claim this credit later after filing TRAN-1. 

Don’t have opening input tax credit-
 

If you are a new business it is likely that you do not have any opening credit. Such businesses have to file GSTR-3B by 20th August.

Archit Gupta, Founder & CEO ClearTax