How to file GSTR 3B

In the 17^th GST council meeting held on 18^th June, 2017, Council decided to provide relief by extending the due dates for invoice-wise return filing inForm GSTR-1(details of outward supplies)andForm GSTR-2(details of inward supplies)for the first two months after the GST rollout.
Considering the concerns raised by the various trade and industrial bodies, and to ensure the smooth roll out of GST, Council has come up with a altogether a new form GSTR -3B which will be applicable only for first 2 months i.e. July 2017 and August 2017.
Form GSTR-3B will be the first return which registered taxpayers will have to file under the GST regime.It is not a substitute for GSTR -1 and GSTR -2. Rather this is an additional (but simple) return which needs to be filed for the months of July, 2017 and August, 2017.
What is GSTR – 3B

• GSTR 3B is a simpler form of returnin which taxpayers need to declare the only the summary of outward and inward supplies. GSTR 3B is applicable only for two months i.e.July17 and August17. However, the invoice-wise details in Form GSTR-1 and Form GSTR-2 for July and August needs to be filed by 5th September and 20th September, 2017 respectively.Download Form GSTR – 3B.

Can you carry forward the input credit from the earlier periods i.e. upto 30th June,2017

• Yes, there is option provided in the form named it as All other ITC for entering the details of carry-forward of credit from the earlier indirect tax regime i.e. central excise duty, service tax and value addedtax.
• The mechanism of claimingcredit from the previous regime has not been defined with the GST filing process. However we are issuing Screen shot of Government department where it is mentioned to claim input of OLD stock .
• This essentially implies that the GST liability for the months of July and August will have to be settled in cash or Credit and the transitional credit will be available only after filing of GSTR-1 on the GSTN common portal.

What is the due date of filing GSTR 3B

• Due date for filing GSTR 3B is 20th August 2017 for the month of July and 20th September for the month of August.

Once GSTR-3B is filed, is it necessary to file GSTR -1, GSTR -2 and GSTR -3 for the first two months

• Yes, it is necessary to file GSTR -1, GSTR -2 and GSTR -3on the revised due dates which will provide relaxation of 25 additional days for the month of July and 10 additional days for the month of August.GSTR -3B is not a substitute forGSTR -1, GSTR -2 and GSTR -3.
• In addition to the relaxation in due dates, no late fees and penalty would be levied for slippage in return filing for the interim period.

Will information in all the forms(GSTR 1,2,3) auto populate once GSTR 3B is filed

• No, the information won’t auto populate from GSTR 3B. Once GSTR-1 is filed on GSTN portal, information in GSTR-2 and GSTR-3 will auto-populate with information furnished in GSTR-1. Then GSTR 3 and GSTR 3B will be matched to check if there is any difference in GST liability. So if excess is paid, it will be refunded and if the payment made is short then additional payment needs to be made. However, penalty and no late fees will be levied for the first two months for any difference.

Is there any relaxation in due dates of filing GST returns for the month of September as well

• No, Nothing has been announced by the CBEC or GST council as of now. So from September onwards, every taxpayer has to strictly adhere to the due dates of filing GST returns.
• Also, the relaxation of no late fee and penalty is for initial 2 months. Hence timely returns need to be filed to avoid any penalty and fines under GST.

What details are needed to be filed under Form GSTR 3B

• Form GSTR-3B consists of 6 headings.
• In which you need to give information regarding the summary details/consolidated details pf of outward supplies, inward supplies, eligible Input tax credit and the details regarding the tax payment.
• Click here to download GSTR 3B

{Note 1 : Value of Taxable Supplies =Value of Invoice+ Value of Debit Notes- Value of Credit Notes+ Value of Advance received (Invoice not issued in same Month)- Value of Advance Adjusted against Invoice ;

Note 2 : Amendments in any detail is to be adjusted and not shown separately;

Note 3 :Details of advances were adjusted against same invoice (Not to be shown separately}

let us discuss the form GSTR 3B in Detail :

• To begin with One needs to enter the month and year in the space provided on left hand side And it will also require the GSTIN no. and legal name of registered person.
• 3.1 Details of outward supplies and inward supplies liable to reverse charge

Under this heading 3.1 consolidated figures of taxable value, IGST, CGST, SGST and cess of the following outward supplies need to be mentioned here whether it is inter state or intra state.

3.1(a) Outward taxable supplies other than zero rated, nil rated and exempted

3.1(b) Outward taxable supplies which are zero rated

3.1(c) Outward supplies which are either nil rated or exempted

3.1(d) Inward Supplies which are liable for reverse charge mechanism

3.1(e) Non GST outward supplies

• 3.2 Of the supplies shown in 3.1 (a) above, details of inter state supplies made to unregistered persons, composite taxable persons and UIN holders

Under this heading,break-up of the inter state outward supplies made to Unregistered Persons, Composite taxable persons and UIN Holders from the details declared in heading3.1(a) above is needed. This information(total taxable value,IGST) needs to be segregated either state-wise or union territory-wisefor the following
– Inter state taxable supply made to unregistered person other thanzero rated, nil rated or exempted.
-Inter state taxable supply made to composite taxable persons other thanzero rated, nil rated or exempted.
– Inter state taxable supply made to UIN holdersother thanzero rated, nil rated or exempted.

• 4. Eligible ITC

Under this heading, complete details of eligible ITC, Reversal of ITC and ineligible ITC of IGST, CGST, SGST and cesswill be recorded.

(A) ITC Available (Whether in Full or Part): Break-up of inward supplies on which the ITC(of CGST,IGST,SGST and Cess) is availed. ITC availed details for the following will be required :

1. Import of Goods: Tax credit of IGST paid on import of goods.
2. Import of Service: Tax credit of IGST paid on import of services.
3. Inward supplies liable to reverse charge: Details of tax credit which is available for inward supplies of goods and services which are liable for reverse charge mechanism.(For eg. GTA services, purchases from unregistered dealers, sponsorship services etc. Note :import of goods or services will not be included)
4. Inward Supplies from ISD:Input tax credit received from Input Service Distributor (ISD).
5. All other ITC: Apart from above, any other ITC relating to inward supplies will be recorded here.

(B)ITC reversed:Under this subheading, details of ITC which is reversible on usage of inputs/input services/capital goods used for non-business purpose, or partly used for exempt supplies. Also, if the depreciation is claimed on tax component of capital goods, and plant & machinery, then the ITC will not be allowed. Such reversal needs to be recorded here.

1. As per rules 42 & 43 of CGST rules
2. Others

(C)Net ITC available (A)-(B)The ITC available as reported in subheading 4(A) will be reduced by the amount of ITC to be revered as reported in in subheading 4(B) The balance will be your available eligible ITC.

(D) Ineligible ITC: GST paid on inward supplies listed in negative list will not be eligible as input tax credit. The details of GST paid on such supplies needs to be recorded in this subheading 4(D).

• 5. Value of Exempt, nil – rated and non GST inward supplies

• Under this heading details of inward supplies for both inter state and intra state made from the composite dealers, inward supplies which are either exempt or nil-rated needs to be recorded separately here.
• Also the details of Non-GST inward supplies forboth inter state and intra stateneeds to be recorded separately here.

• 6.1 Payment of Tax

Under this heading, details of GST payment separately for CGST,IGST,SGST and cess payable reduced from ITC availed and TDS/TCS needs to be recorded here.The tax-wise break-up of payment tax by way of utilization of ITC and cash deposit needs to be provided. If any interest or fine is levied on GST payment is also to be recorded here.

• 6.2 TDS/TCS credit

Under this heading, details of TDS (Tax withheld by the Government establishment) and TCS (Tax withheld by E-commerce operator). However, these provisions are deferred from initial rollout of GST. Accordingly, TDS and TCS is not applicable till it is notified further.

• Verification

Authorized Signatory needs to sign after filling in all the above details and he needs to solemnly affirm and declare that the information given herein above is true and correctto the best of my knowledge and belief and nothing has been concealed there from.
To Download GSTR 3B in Excel Click Here
To Download GSTR 3B in PDF Click Here.
What are the revised due date for Form GSTR-1

• Due dates for GSTR-1 for the month of July,August and September2017

What are the revised due date for Form GSTR-2

• Due dates for GSTR-2 for the month of July,August and September2017

What are the revised due date for Form GSTR-3

• Due dates for GSTR-3 for the month of July,August and September2017

How many GST returns will be filed in the month of September,2017 and on what dates

• The month of September, 2017 will be full of GST returns, total seven returns are to be filed this September, 2017 under the GST regime

Compiled by CA Ankita Khetan the author can be reached [email protected]