Form GSTR-3B: What you should know

To comply with the new Goods and Services Tax (GST), registered taxpayers were initially looking at having to file three GST return forms a month: GSTR-1, GSTR-2, and GSTR-3. 

However, that’s temporarily on hold due to server breakdowns that prevented taxpayers from filing. Instead, taxpayers must file form GSTR-3B for the months of July 2017 to March 2018. Here’s what you need to know about filing GSTR-3B.

What is GSTR-3B?

GSTR-3B is a simple summary return that all normal taxpayers must file monthly for the nine-month period of July 2017 to March 2018.

On this form, taxpayers summarize and report the total values of purchases and sales, without needing to list invoice details.


Will there be invoice matching on GSTR-3B?

Since taxpayers are not required to list invoice details on GSTR-3B, there is no process for matching invoices.

However, if the total values of purchases and sales reported on GSTR-3B don’t match the values later reported on forms GSTR-1, GSTR-2, and GSTR-3 for the corresponding months, taxpayers will be required to pay the additional GST, as well as penalties and interest. 

What is the due date for GSTR-3B?

GSTR-3B must be filed by the 20^th of the following month. For example, the due date for the December 2017 GSTR-3B is 20 January 2018. 

Who files GSTR-3B?

All registered taxpayers must file GSTR-3B, except for the following classes of taxpayers: 

a) Input service distributors

b) Composition dealers

c) Suppliers of online information and database access or retrieval services (OIDAR)

d) Non-resident taxable persons 

Taxpayers must file form GSTR-3B even if there are no transactions in the month.

Can GSTR-3B be revised?

No. Once filed, taxpayers cannot revise form GSTR-3B at a later stage.  

What are the penalties for not filing GSTR-3B, or for filing late?

Late fees for filing GSTR-3B after the due date are:

• Rs. 50 per day of delay
  
• Rs. 20 per day of delay for taxpayers having nil tax liability for the month

If the GST amount is not paid until after the due date, taxpayers are responsible for paying interest of 18 percent per annum. Interest will be calculated from the day following the due date, to the date of actual payment. 

Details to be given in GSTR-3B

Following are the important details for taxpayers to report on form GSTR-3B: 

Tax on outward and reverse charge inward supplies, including:

• Details of all outward supplies, as well as details of the inward supplies that are eligible for reverse charge.
• Total taxable value, ISGT, CGST, SGST, and cess of supplies. For exempted nil-rated supplies and non-GST supplies, taxpayers should report the total value. 

Interstate supplies

• Details related to interstate supplies made to unregistered persons, composition dealers, and UIN holders. Taxpayers must also mention place of supply, total taxable value, and IGST amount. 

Eligible ITC

• The total amount of input tax credit (ITC) available, as well as any ITC that has been reversed per CGST/SGST rules 42 and 43. 
• Any ITC that is ineligible as per section 17(5).

Exempt, nil, and non-GST inward supplies

• Form GSTR-3B also requires taxpayers to report details of exempt, nil, and non-GST inward supplies.

Interest and late fees

• All late fees and interest due as a result of late GST payments or late filing of GST returns.  

How does Avalara software help taxpayers file form GSTR-3B?

Avalara India GST automates filing form GSTR-3B to save you time so you can focus on expanding your practice or business. With a single click, Avalara India GST autopopulates required details. You can also preview and modify details on form GSTR-3B as needed before filing. 

Once you have previewed GSTR-3B and are satisfied with the form, you can offset the tax liability against cash or input tax liability. Avalara India GST will show the balance before and after setting off the liability so you can establish control over the figures.

After setting off the tax liability, you can file the GSTR-3B return. Avalara’s TrustFile software archives returns should you need to review any of them later on. 

Avalara is an experienced application service provider (ASP) and partner of authorized GST Suvidha Providers (GSPs). To understand how our cloud-based application, Avalara India GST, can help you with GST compliance automation, contact us through https://www.avalara.com/in/products/gst-returns-filing.