What is GSTR-3B?
GSTR-3B is an Interim return made for filing the consolidated values of outward & inward supplies self-declaration basis for the month of July and August.
the tax would be payable based on a simple return containing the summary of outward and inward supplies which will be submitted before 20th of August and 20th of September respectively. You need to record each & every transaction for future reference.
Who Should File GSTR-3B?
Any 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 these months.
Following registrants do not have to file GSTR-3B:
Why GSTR-3B is important to file:-
If anyone is not filling GSTR-3B may invite 18 percent of the penalty per year. Details of Outward Supplies and Inward Supplies liable to reverse Charge Outward taxable supplies (other than zero-rated, nil rated and exempted): Enter the details of taxable value and tax payable on services provided by the Registered or Unregistered person.
Please note that the value entered in IGST will be greater than or equal to the inter-state supplies in next part of the form.
Outward taxable supplies (zero-rated): Enter the details of taxable value and tax payable on supplies made to SEZ and All exports (both on bond and without bond) i.e. IGST or cess in the respective column on services provided or goods sold/ supplied.
Other outward supplies (Nil rated, exempted):
Enter the details of the value of the service provided or goods sold/supplied which are exempt under GST or where the rate of tax notified is NIL or 0 %.
Inward supplies (liable to reverse charge):
If you have purchased any goods or received any services from Registered or Unregistered person for whom reverse charge is applicable, i.e.
where the onus of payment of tax falls on the receiver enter the taxable value and tax paid theirs on.
Non-GST outward supplies:
Enter the details of taxable value of services provided or goods
sold/supplied which do not fall under the ambit of GST or on which GST is not applicable for Eg-
Petrol, Diesel & Alcohol for human consumption.
OF the Supplies shown in 3.1 above, details of inter-state supplies made to unregistered person, Composition taxable person and UIN holders
Supplies made to Unregistered Persons: Unregistered persons are the ones who do not have a GST registration and the Supplies made to Unregistered person states will be entered here.
Supplies made to Composition Taxable Persons: Composition Taxable Persons are the ones who are liable to pay tax under the composition scheme.
Supplies made to UIN holders: The following are granted a UIN:-
Any other person or classes of person notified by the Commissioner who shall be liable to obtain Unique Identification Number.
The supply made to specialized foreign embassies.
Certain Institution prescribed by the government.
One should keep in mind that the total of the amount of integrated tax should not exceed the amount mentioned in the Integrated tax in S. No.1 in Outward supplies and Inward supplies.
(A) ITC Available (whether in full or part):
Import of goods: tax paid on the purchase of goods or capital goods received from outside India and used only for business purposes will be available as an input tax credit.
Import of services: tax paid on receipt of services from outside India and used only for business purposes will be available as an input tax credit.
Inward supplies liable to reverse charge: If you have purchased any goods or received any services which are liable to reverse charge, i.e. where the onus of payment of tax falls on the receiver, tax paid will be provided as an input tax credit in the subsequent month.
Inward supplies from ISD: ISD stands for Input Service Distributor. In case a business has multiple units and is supplying goods or services from all such units, the input service distributor will allow input tax credit to each such unit.
All other ITC: Any other credit as may be applicable and not mentioned above.
(B) ITC reversed: If ITC claimed in above part (4(A)) and if the input is used for making exempt & Non-Business Outward Supply then it will be going to ITC reversed.
As per rules 42 & 43 of CGST Rules:
Rule 42 pertains to the manner of determination of input tax credit in respect of inputs or input services and reversal thereof.
Rule 43 pertains to the manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases.
Others: Any other credit that needs to be reversed.
From a supplier under composition scheme, Exempt and Nil rated supply: Value of goods purchased from a supplier to whom the composition scheme is applicable will be mentioned here. Further, purchase of goods or receipt of services which are exempt from tax or where the tax payable is NIL.
Inter-State supplies: The total value of goods purchased or services received, which fall in the above category, within India from outside the state need to be provided.
Intra – State supplies: The total value of goods purchased or services received, which fall in the above category within India, within the state need to be provided.
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.