If you collect GST, you need to file the GSTR-3B by the 20th of every month. The form looks a bit complicated, but filling out the form is easier than it appears at first glance. So, here’s an overview of the essentials.
Do You Need to File a GSTR-3B Return?
Typically, if your business is registered under the GST scheme, you have to file this form, but there are a few exceptions. In particular, if you fall into any of the following categories, you don’t have to worry about this form:
- Composition Dealers
- Input Supply Distributors
- Suppliers of Online Information
- Non-Resident Taxable Individuals
- Additionally, you don’t have to file if your business provides online database access and retrieval services, such as selling e-books or online gaming.
What Information Do You Need to File Your GSTR-3B Return?
Luckily, you don’t need a lot of information to fill out the GSTR-3B. The form doesn’t require invoice-level information. So, you don’t have to provide the numbers from each and every sale. You just have to note the total amounts for each category, including the following:
3.1 Details of Outward Supplies and Inward Supplies Liable To Reverse Charge
(a) Outward taxable supplies (other than zero rated, nil rated and exempted)
(b) Zero rated outward taxable supplies
(c) NIL rated and exempted outward taxable supplies
(d) Inward supplies — liable to reverse charge
(e) Non-GST outward supplies
3.2 Of the Supplied Shown in 3.1(a) Above, Details of Inter-State Supplies Made to Unregistered Persons, Composition Taxable Persons, and UIN Holders.
Supplies made to:
(a) Unregistered persons
(b) Composition taxable persons
(c) Unique Identification Number (UIN) holders
4. Eligible ITC
(A) ITC Available (whether full or in part) on:
1) Goods that are imported
2) Services that are imported
3) Inward supplies liable to reverse charge (other than 1& 2 above)
4) Inward supplies from Input Service Distributor (ISD)
5) All other ITC
(B) ITC Reversed
1) As per rules 42 and 43 of CGST/SGST Rules
2) Any other ITC that has been reversed in your books
(C) Net ITC Available — (A) minus (B)
(D) Ineligible ITC
1) As per section 17(5) of CGST/SGST Act
5. Values of Exempt, Nil-Rated and Non-GST Inward Supplies
a) From a supplier under Composition Scheme, Exempt and NIL Rated
b) Non-GST Supply
6. Payment of Tax
1) Integrated Tax
2) Central Tax
3) State/UT Tax
Keep in mind, you need to file a GSTR-3B return for every GSTIN your business has. So if you have branches in other states that have separate GSTINs, you need to file a separate return for each of them.
Where to File Your GSTR-3B Form
You can file your GSTR-3B form using the GST tax portal. You have to manually enter your information, but the process is simple. You can make it even easier by using cloud-based accounting software, such as QuickBooks. This helps you to prepare the necessary financial information before you file.
I. Filing Returns Through GST Portal
To file your GSTR-3B form using the GST tax portal:
Login to GST Portal.
Go to the Services drop-down menu.Then, select “Returns” to get to the Returns Dashboard.
Make sure you’re on the File Returns page of the dashboard. Then, use the drop-down menu to select the correct financial year and return filing period
Look for the tile that says, “Monthly Return GSTR-3B,” and select “Prepare Online.”
Enter the values into each of the tiles displayed. Then, fill in any interest and late fees if needed.
Click “Save GSTR-3B” at the bottom of the page. You should see a message at the top of the screen telling you that the information saved successfully.
Once all the details are saved, select “Submit GSTR-3B” at the bottom of the screen. You should see a message telling you the submission was successful. The status of your return will also change to “submitted.” Keep in mind, you can’t change any of your information after you’ve submitted the form. Once the form is submitted, you should see that the ITC and Liability Ledger are also updated.
Next, go down the page and click “Payment of Tax” tile so you can pay your taxes and offset your liability.
Then, click “Check Balance” to review your balance of cash and credit before making your payment. Then, click the “Okay” button to return to the previous page.
Here, provide the amount of credit you want to use to offset your tax liability. Then, click the “Offset Liability” button.
Follow the instructions on screen to make any additional tax payment needed if you’re paying by debit or credit card. Otherwise, skip to step 12.
Select the checkbox for declaration to bring up the “Authorized Signatory” drop-down box. Then, select the proper authorized signatory. Click either the “File GSTR-3B with DSC” or the “FILE GSTR-3B with EVC” button, whichever applies to you. This populates a message box warning you that you’re about to file your GSTR-3B tax return. Select “Proceed” to file the return.
Write down the confirmation information that appears in the Successful Filing pop-up box for your records. Then, click “Okay.” You should notice that your GSTR-3B filing status has changed to “Filed” and you should be able to view your return.
II. Filing Return Through Authorized Bank
If you want to pay your tax liability in cash, you can do so at any authorized bank. But keep in mind, there is a limit of ₹10,000 per challan when making an over-the-counter payment through an authorized bank.
Once you know what information the GSTR-3B form requires, filing your return comes down to entering the correct information in the right place. So consider gathering all of the needed info prior to filling out your form to streamline the process.