NON FILING OF RETURN – FORM GSTR 3B

[Mr. M. GOVINDARAJAN]

Form GSTR-3B

Vide Central Goods and Services Tax fourth amendment Rules, notified vide Notification No. 17/2017-Central Tax, dated 27.07.2017 Rule 61(5) was substituted for fresh sub rule, which came into effect from 01.07.2017 i.e., the date of implementation of GST.  This sub rule required for filing of Form GSTR- 3B.

Every registered person required to furnish return, under sub-rule (1) shall, subject to the provisions of section 49, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger or electronic credit ledger and include the details in the return in Form GSTR-3B.

This form was introduced by the Government vide Notification No. 21/2017-Central Tax, dated 08.08.2017, which came into effect from 08.08.2017.  The due date for filing this form for July 2017 was fixed on 20.08.2017.   Form GSTR – 3B is a month-based summary return filed by the taxpayer by the 20^th of the next month to declare their summary GST liabilities for the tax period and the completion of these liabilities in time.

Replacement of Form GSTR – 3

The Central Goods and Services Tax (Sixty Amendment) Rules, 2019, notified by Notification No.49/2019-Central Tax, dated 09.10.2019, substituted Rule 36(5) with effect from 01.07.2017.  The proviso to this new rule provides that where a return in FORM GSTR-3B is required to be furnished by a person then such person shall not be required to furnish the return in Form GSTR-3.

Extensions

Due to the initial implementation problems of the new Act and the technical glitches prevailing in the GSTN portal, the due date for filing the said form along with other forms are extended now and then.

Pattern of filing GSTR – 3B

With effect from 01.01.2021 GSTR – 3B is to be filed every month or every quarter according to the aggregate turnover of the registered person.  Those who are required to file Form GSTR – 3B monthly are to file the same on or before 20^th of the following month.

Those who are required to file quarterly return is to be file the said return as detailed below-

• 22^nd day of the following quarter – the registered persons whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep.
• 24^th day of the following quarter – the Registered persons whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi.

Late fee

If the registered person failed to file the form GSTR – 3B late fee will be levied under section 47 of the Central Goods and Services Tax Act, 2017.  According to section 47 any registered person who fails to furnish form GSTR – 3B by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.

The Central Government, due to the technical glitches prevailing in the GSTN portal, waives late fee for delayed filing the form GSTR – 3B now and then.

Interest

The late filing of GSTR-3B attracts  interest at 18% along with late fee. In case the tax was paid within the due date but the GSTR-3B was filed after the deadline, both late fees and interest will apply.

Annual Return

Every registered person is required to file Annual return for every financial year.    It is mandatory to file all FORM GSTR-1 and FORM GSTR-3B for the any financial year before filing Annual return Form GSTR 9.

Blocking of E-way bill

Rule 138E of the Central Goods and Services Tax Rules, 2017 provides that notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of Form GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who a person other than tax payer under composition shceme, has not furnished the returns for a consecutive period of two tax periods.

The said restriction shall not apply during the period from the 20^th  day of March, 2020 till the 15^th  day of October, 2020 in case where the return in Form GSTR-3B or the statement of outward supplies in FORM GSTR-1  has not been furnished for the period February, 2020 to August, 2020.

Restricting Form GSTR – 1

Vide Notification No. 01/2021-Central Tax, dated 01.01.2021 the Central Goods and Services Tax Rules has been amended by the Central Government.  This amendment inserted new Rule 59(6).  This notification gives restrictions in filing GSTR – 1 if GSTR – 3B has not been filed.  This restriction came into effect from 01.01.2021.

• A registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in Form GSTR-1, if he has not furnished the return in Form  GSTR-3B for preceding two months;
•  a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in Form GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in Form GSTR-3B for preceding tax period;
• a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of 99% of such tax liability under rule 86B, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in Form GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in Form GSTR-3B for preceding tax period.

Form GSTR 1

Rule 59(1) provides that every registered person, other than a person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 required to furnish the details of outward supplies of goods or services or both under section 37, shall furnish such details in FORM GSTR-1  for the month or the quarter, as the case may be, electronically through the common portal, either directly or through a Facilitation Centre as may be notified by the Commissioner.

The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include the–

•  invoice wise details of all –

•  inter-State and intra-State supplies made to the registered persons; and
• inter-State supplies with invoice value more than ₹ 2,50,000/- made to the unregistered persons;

•  consolidated details of all –

• intra-State supplies made to unregistered persons for each rate of tax; and
• State wise inter-State supplies with invoice value up to ₹ 2,50,000/- made to unregistered persons for each rate of tax;

• debit and credit notes, if any, issued during the month for invoices issued previously.

The details of outward supplies of goods or services or both furnished using the IFF shall include the –

• invoice wise details of inter-State and intra-State supplies made to the registered persons;
• debit and credit notes, if any, issued during the month for such invoices issued previously.

Cancellation of registration

Section 29(2) (c) of the Central Goods and Services Tax Act, 2017 provides that the proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where any registered person, other than a person paying tax under composition scheme, has not furnished returns for a continuous period of six months.

Discussions to this article

[VS RAVINDRAN]

Thank you Sir for your in-depth article regarding Form GSTR 3-B...

In this article you have mentioned that late fee for filing the Return is ₹ 100/- per day..

In my humble opinion I have seen in the Portal as ₹ 25/- per day (in case of any liability) or ₹ 10/- per day (in case of Nil liability) per Act...

Kindly clarify Sir...

V.S. RAVINDRAN, CHENNAI

[DR.MARIAPPAN GOVINDARAJAN]

Thank you for correction