GSTR-3B : A brief Note

[Ganeshan Kalyani]

GSTR-3B is a summarized return. A taxpayer is required to file this return as per the requirement of the provision u/r 61(5) of CGST Rules, 2017. This return is filed on a monthly basis. In this return the taxpayer furnishes the sum total of outward supplies in a particular month. The taxpayer also works out total input tax credit and segregate them into eligible and ineligible and furnishes them in the relevant table of this return. Through this return the taxpayer is required to pay GST through credit or by cash. The GST so paid gets reflected into the Electronic Cash Ledger. The input tax credit so furnished in the return gets reflected into the Electronic Credit Ledger. The GST liability so furnished gets reflected into the Electronic Liability Ledger.

The taxpayer is required to login into the Government Portal www.gst.gov.in and go to the services → Returns → Returns Dashboard → select financial year and return period → click on GSTR-3B. A list of questions are displayed. Taxpayer need to answer all the questions. Based on the answer, relevant tables of GSTR-3B will be visible.

Click on table 3.1 to furnish the summary details of outward supplies and inward supplies liable to reverse charge and the tax liability thereon. 

Click on table 3.2 to furnish inter-state supplies made to unregistered persons. Taxpayer must ensure that the integrated tax amount provided in this table do not exceed the integrated tax liability declared at (a) row in table 3.1. Only integrated tax amount has to be declared, cess amount is not required to be mentioned.

The details of inter-state supplies made to composite taxable person and UIN holder is also required to be furnished in this table.

Click on table 4 to furnish Input tax credit (ITC) details. ITC available to be furnished in clause (A), ITC reversal in clause (B) and ineligible ITC in clause (D). In clause (A) ITC available on import of goods, import of services, inward supplies liable to reverse change, inward supplies from ISD - Input Service Distributor need to be furnished. In clause (B) ITC reversal as per rule 42 & 43 of CGST /SGST Rules and other reversal need to be furnished. In clause (D) the details of ineligible ITC as per section 17(5) and others need to be furnished.

Click on table-5 to furnish details of inward supplies from a supplier under composition scheme, exempt, NIL rated supply and Non GST inward supplies.

Click on table 5.1 to furnish the details of the interest and late fee payable. The late fee would be system computed based on the number of days elapsed after the due date of filing.

Once all the details are furnished in relevant table the summary figure will appear on the tiles. If the figures appearing on the tiles are correct then click on "Save GSTR-3B" and if not making corrections.

Click on "Preview Draft GSTR-3B" to view the summary page of GSTR-3B for review. It is recommended that after the draft return is downloaded the details furnished in different table must be reviewed thoroughly with the working sheets.

After ensuring the details are correct in the draft return click on "proceed to payment" tab at the bottom of the return page. After clicking the table the first table appears is "Cash ledger balance" and the second one is "Credit ledger balance (including current month's credit). The third table shows the offset of tax liability against the credit and cash balance in the ledgers. In case the available credit and cash balances are insufficient to offset the current liability then the system shows as "additional cash required". Then upon clicking on "Make payment/Post Credit to ledger a challan is created. After the payment is done the cash paid gets reflected in the electronic cash ledger.

Now, after payment if once again clicked on "proceed to payment" the third table appears wherein the offset is done and it show that there is no cash payment is required. After clicking once again on the "make payment/post credit to ledger" the system offsets the liability with the cash paid and credit available.

After the offset is done successfully the system takes us to the last section of the return  wherein a declaration is required to be signed by the taxpayer. It says, "I/We hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom". The return can be filed with EVC - Electronic Verification Code or with DSC - Digital Signature Certificate. On selecting either of the option a taxpayer gets an OTP - One time password which is when furnished in the system the return gets filed. An acknowledgment is received through email and SMS.

After the filing is done in the last section of the return a tab appears "Download  Filed Return". Upon clicking on it a final filed copy of GST return gets downloaded for the record of the taxpayer. Then a taxpayer must come back to the main page and see the return section with status as "Filed".

Take care of yourself and your family. Maintain hygiene and stay safe".

Discussions to this article

[KASTURI SETHI]

Dear Sh. Kalyani Ji,

You are really a hard worker. Always doing something. You never sit idle. These habits and hobbies are appreciable.

[Ganeshan Kalyani]

Thank you Sri Kasturi Sir for your comments. In fact I am impressed with you drafting skills. I am trying to improve my writing skills through these articles. I would welcome your suggestions. Thanks.

[OmPrakash jain]

S17((5)(d)─ITC for construction of Immovable Property.─In the case of Safari Retreats Private Limited v Chief Commissioner of CGST  2019 (5) TMI 1278 - ORISSA HIGH COURT, it has been held by the High court that when an Immovable Property is constructed for Letting out of Property on Rent after grant of completion certificate, then ITC is admissible. The narrow construction of interpretation put forward by the Department to read S17((5)(d) is frustrating the very objective of the GST Act. In case the assessee is required to pay GST on the rental income arising out of the investment on which he has paid GST, then ITC is also required to be allowed.

Whether this ITC is Ineligible ITC in GSTR-3B-Table No.4–Clause D?