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Know About GST Return Forms GSTR – 3B
Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. GST is one indirect tax for the entire country. It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
Government of India has introduced various GST Return Forms for different kinds of taxpayers under GST. In the present arena, GSTR – 3B is known to be a significant GSTR Form.
GSTR-3B is the first Return Form introduced after the GST implementation. CBEC introduced this simple Return Form, which every registered taxpayer has to file. Summary of information about sale and purchase, available input tax credit, tax payable, tax paid is to be furnished.
A taxpayer needs to file a separate GSTR-3B form for each GSTIN that he/she possesses. Basically, this is a kind of monthly self-declaration. Every person who has registered for GST must file the return GSTR-3B, including nil returns.
However, the following registrants do not have to file GSTR-3B –
- Input Service Distributors & Composition Dealers,
- Suppliers of OIDAR (Online Information Data Access and Retrieval),
- Non-resident taxable person,
- TDS deductor,
- TCS collector.
Why is it important to file GSTR 3B?
Since GSTR 3B is temporary in nature, some businesses might think that it’s not that important. However, you should know following things:
- Not filing GSTR-3B may invite the penalty of 18% per year
- GSTR 3B is required for preparation of filing further GST returns.
- Same data can be used to file GSTR 1
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 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.
- 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.
- 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 the filing of form GSTR-3B. In other words, GSTR-3B return cannot be filed without full payment of the tax due.
Revision of GSTR-3B
Once a GSTR-3B return has been filed, there are two statuses, namely, Submitted and Filed. When the data is filled, and the return has been submitted the status of the form will be ‘submitted’, while when the liability is paid, and the return is filed, the status will be ‘filed’.
One of the important points to be noted here is that, the taxpayers cannot revise Form GSTR-3B at a later stage. But Government has now allowed to ‘Reset GSTR 3B’ through which the status of ‘Submitted’ will be changed to ‘Yet to be Filed’, and all the details filled in the return will be available for editing.
Provisions for Late Fee and Interest:
As per GST laws, the Late Fee is an amount charged for delay in filing GST returns. It can be referred to as an overdue fine.
When a GST Registered business misses filing GST Returns within the prescribed due dates, some amount of late fees is charged. The late fee is also applicable for the delay in filing NIL returns.
And thus, there is a clear provision for Late Fee for filing GSTR-3B after the due date; i.e. –
- ₹ 50/day of delay, and,
- ₹ 20/day of delay for taxpayers having nil tax liability for the month.
Additionally, if not paid on/before the prescribed due date, the defaulter shall be liable to pay interest @ 18% per annum for the outstanding tax to be paid.
Also, if excess ITC is claimed or if there is an excess reduction in Output Tax, interest @ 24% has to be paid.
There are some inconveniences while filing from GST Portal which GST Council need to take note of :
- Copy paste of values is not allowed.
- Chances of error are increased as manual entry of values has to be made.
- GST liability is calculated after submitting the return.
- It is not possible to revise GSTR-3B once filed.
If solution is provided, it will make the GST compliance easier.