MLRS Business Process Solutions LLP.

GST Return 3B


On June 18, 2017, the GST Council in its 17th meeting decided to extend the timeline for invoice-wise return filing in Form GSTR-1 and Form GSTR-2 for the first two months of the GST rollout. This decision was taken to provide relief to businesses and to ensure a smooth implementation of GST across the country.

As per this decision, businesses are required to file a simplified GSTR-3B return by declaring a summary of their inward and outward supplies for the months of July and August. However, the invoice-wise details for both months must be filed later.

How to File Form GSTR-3B?

Form GSTR-3B consists of 6 tables, each requiring specific details:

Table 1: Details of Outward Supplies and Inward Supplies Liable to Reverse Charge

This table captures the total taxable value (both intra-state and inter-state) along with applicable taxes (CGST, SGST/UTGST, IGST & Cess) for:

  • Outward taxable supplies excluding zero-rated, nil-rated, and exempt supplies
  • Zero-rated outward supplies
  • Nil-rated and exempted outward supplies
  • Inward supplies liable to reverse charge
  • Non-GST outward supplies

Table 2: Details of Interstate Supplies Made to Unregistered Persons, Composition Dealers, and UIN Holders

This table requires details of place of supply, taxable value, and IGST for interstate supplies made to:

  • Unregistered persons
  • Composition dealers
  • UIN holders

Table 3: Details of Eligible Input Tax Credit (ITC)

This table contains:

  • ITC Available: On inward supplies such as imports, reverse charge supplies, ISD supplies, and other eligible inward supplies
  • ITC Reversed: ITC reversed for inputs/input services/capital goods used partly for exempt supplies or non-business use; also where depreciation is claimed on tax portion of capital goods
  • Eligible ITC: Calculated by deducting ITC reversed from ITC available.
  • Ineligible ITC: GST paid on inward supplies where ITC is not allowed.

Table 4: Details of Exempt, Nil-rated, and Non-GST Inward Supplies

This table includes interstate and intrastate supplies from composition dealers, exempt and nil-rated supplies, and non-GST inward supplies.

Table 5: Payment of Tax

This table requires declaring the self-assessed tax payable through:

  • ITC (CGST, SGST/UTGST, IGST & Cess)
  • TDS/TCS
  • Cash payment
  • Interest and late fees, if applicable

Table 6: TDS/TCS Credit

This table captures TDS and TCS credit details for CGST, SGST/UTGST, and IGST. However, these provisions are currently deferred and not applicable until further notice.

Payment of Tax

Earlier, taxpayers could only ascertain their tax liability after submitting the return, with no option to modify details afterward. Now, before submitting the return, taxpayers can view their current ITC balance, cash ledger balance, tax-wise liabilities, suggested ITC utilization, and the remaining tax payable in cash—all in a single table. This makes it much easier for taxpayers to track and calculate pending tax liabilities.

Generation of Challan

Previously, taxpayers had to manually enter ITC utilization and cash payment amounts before generating a challan. Now, the system auto-suggests ITC utilization, which taxpayers can modify. Adjusting ITC utilization automatically updates the cash payment required. This allows challan generation with just one click.

Facility for downloading Draft Return

A new feature allows taxpayers to download a draft return at any stage of the filing process to verify saved details offline.

Tax Amount getting Auto-filled

Taxpayers only need to fill either the CGST or SGST/UTGST amount, and the system will automatically fill the other tax amounts.

GST-RETURN-3B

Changes in the GSTR-3B Filing Process

  • FAQs and a User Manual are available with helpful pop-ups to guide taxpayers while filling Form GSTR-3B.
  • Taxpayers need to fill either the CGST or SGST/UTGST amount, and the other tax fields will be automatically filled by the system.
  • Form GSTR-3B can be previewed or downloaded to verify saved details in any of the tables by clicking the PREVIEW DRAFT GSTR-3B button. You can download the draft summary page for review.
  • Once the taxpayer proceeds to payment, details of balances available in the cash and credit ledgers can be viewed together in one place (see Table 6.1 – Payments Table).
  • Tax liabilities declared in the return, along with available credits, are updated in the ledgers and displayed under the Tax payable column in the payment section. Hovering over the credit headings shows detailed information.
  • The system auto-fills the Tax to be paid through ITC fields with the optimal utilization amounts based on legal provisions. This is a suggestion and taxpayers can modify the ITC utilization. If ITC utilization is changed, the cash amount to be paid is updated automatically.
  • If the electronic cash ledger balance is insufficient to cover liabilities, the additional cash required is shown in the last column of the table (Additional cash required). The taxpayer can directly create a challan for this amount by clicking the CREATE CHALLAN button. After online payment, the system returns to the Payments Table.
  • Clicking the MAKE PAYMENT/POST CREDIT TO LEDGER button allows taxpayers to clear liabilities or claim credit if no liabilities exist.
  • Finally, clicking Proceed to file lets taxpayers file GSTR-3B using EVC (Electronic Verification Code) or DSC (Digital Signature Certificate). The old Submit button has been removed.
WhatsApp