GSTR 3B, a simple monthly tax return form that all businesses registered under the Goods and Services Tax (GST) must file, was introduced in 2017 to help enterprises file returns easily in the initial months of the tax regime. However, taxpayers often made errors in submitting the correct amount under input tax credit (ITC) and calculating the balance tax to be paid in cash. To reduce the frequency of such errors and to simplify the filing process, the government rolled out a user-friendly version of the form in February 2018. Here’s a look at the four important changes introduced in the updated GSTR 3B.
Payment of tax- Previously, taxpayers had to submit their returns to determine the tax liability or the money owed. Additionally, they could not make any changes after submitting the return. However, the revised GSTR 3B displays all the tax liability details in a single table before the return is submitted, making it easy for taxpayers to track their ITC and the tax they need to pay by cash.
Generation of challan- Earlier, taxpayers had to manually enter the ITC amount and the tax amount due via cash to generate the challan. However, the revised form automatically suggests the amount of credit used, offsets it and auto-generates the challan with the simple click of a button. Also, the taxpayer can choose not to consider the suggested amount of credit used or change the credit to be utilized. This automatically changes the final tax amount to be paid.
Downloading of draft return- The new GSTR 3B allows taxpayers to download the draft return at any step of the filing process, allowing individuals to cross-check their saved details even when offline.
Auto-fill of tax amount- Taxpayers only need to input the CGST or the SGST/UTGST amount. Once this is done, other tax details get automatically filled.
Also, businesses can now use the comprehensive user manuals that explain the return filing process to clear any doubts.
The revised GSTR 3B form has reduced the need for manual data entry and has made the return filing process simpler, faster and error-free.