GSTR 3: Return Filing, Eligibility, Rules and Format

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Dealing with tax duties is critical for any company. Businesses in India must file multiple returns within the country’s Goods and Services Tax (GST) system during the financial year. The GSTR 3 is one example of this type of return. All GST-registered firms must file GSTR 3 in a specified format. This return comprises information about outside and inward supply, taxes due, the taxes on inputs credit, and additional pertinent information. Businesses with an annual revenue exceeding Rs. 5 crores must file GSTR 3 monthly, while those having an annual profit of beneath Rs. 5 crores are able to submit quarterly.

The GST Council governs the GSTR 3 rules and regulations, and any modifications or changes are reported to taxpayers via official means. Understanding the structure, eligibility, and guidelines for GSTR 3 filing is critical for firms seeking to ensure compliance with GST legislation and avoid fines. This article seeks to provide a complete overview of GSTR 3 return preparation and empower businesses with the knowledge they need to meet their tax obligations effectively.

Who is Eligible to File GSTR 3?

In India, all GST-registered taxpayers must file a GSTR 3 return. It includes companies as well as people who conduct business within the country. However, there are some exceptions to this rule:

  • The eligibility for GSTR 3 exempt taxpayers from this requirement are composition dealers, non-resident taxable individuals, input service distributors, persons required to collect TCS (Tax Collected at Source), and people obligated to deduct TDS (Tax Deducted at Source).
  • To achieve GST regulation, taxpayers must first understand the GSTR 3 return format, the category they belong to, and their specific duties for preparing the GSTR 3 return.

Deadlines and Penalties for Late Filing

According to the Indian GST system, the GSTR 3 form is required to be completed within the 20th of the month that comes next. For example, in April, the last date for GSTR 3 registration is May 20th. Failure to comply with the deadline will result in an extra charge for lateness of ₹50 per day.

For taxpayers who do not owe tax during a particular month, the charge for late payment is reduced to ₹20 per day. The maximum penalty for late payment cannot be over twenty-five percent of the taxpayer’s national turnover. For a taxpayer with a yearly revenue of ₹1,00,000, the maximum allowable fee for late payment is ₹250.

Significantly, the GST system automatically determines this penalty at the moment of return filing, emphasising the importance of timely submissions to prevent unnecessary expenditures while maintaining a positive relationship with the taxing authorities.

Also Read: Penalties And Late Fees For GSTR-3B Filing

Format and Contents of the GSTR 3 Form

The GSTR 3 return form is based on the information provided in your GSTR 1 and GSTR 2 forms. The information inside of GSTR 3 basically covers all of your company’s operations for a given tax duration, including both outbound and inbound transactions of products and services. This form is cautiously divided into two parts:

  • It gets filled in using the data from GSTR 1 (external supplies) and GSTR 2 (inbound supplies). As a result, GSTR 1 and GSTR 2 forms must be filled out correctly because they’ll have an immediate impact on the data you provide on your GSTR 3 form.
  • The GSTR 3 reporting form, on the other hand, contains financial information. You will be required to enter information on the total amount of tax paid, the amount of interest collected, late fines imposed (if applicable), and any additional costs collected all over the tax period. It gives you an extensive overview of your tax owed and completed for the tax term in question.
  • Moreover, It will also assist you in claiming the tax credit by duly preparing input tax credit reconciliation.

As a result, all of the information on your GSTR 1 and GSTR 2 forms must be valid and up to date, as it directly affects your GSTR 3 return format. Mistakes or inaccuracies may produce irregularities in your GSTR 3 form, ultimately leading to fines or additional penalties.

Also Read: GSTR 3 Return Filing: Format, Eligibility & Rules

Being Aware of the Conditions of Eligibility for GSTR 3

To qualify for GSTR 3 filling, the taxpayer must satisfy several criteria, such as:

  • In the initial stages, the taxpayer must be registered with the GST system in India, which relates to both industrial organisations and people undertaking commercial activity within the country. However, there are several limitations. Composition Dealers, Non-resident taxable people, Input Service Distributors, TCS collectors, and TDS deductors are not required to file GSTR 3.
  • In addition to the initial enrollment, it is necessary to complete additional GST forms. When filing GSTR 3, taxpayers should have correctly submitted GSTRs 1 and 2 for the specific tax period. The GSTR 1 form covers leaving goods, while the GSTR 2 form covers incoming supplies.
  • Further, taxpayers need to have completed their tax responsibilities throughout the pertinent tax period. It suggests that all taxpayers must pay any taxes during that period before submitting the GSTR 3. These elements combine to determine the qualifying requirements for completing GSTR 3 returns.

Essential Rules for Filing the GSTR 3 Form

The GSTR 3 rules and regulations involve several essential requirements that taxpayers must follow. 

  • It is required to assure perfect correctness. The GSTR 3 form, which has been auto-populated with information from the GSTR 1 and GSTR 2 forms, requires diligent confirmation of all generated data. The taxpayers must correct any found errors as soon as possible at the source, namely the GSTR 1 and GSTR 2 forms.
  • Remitting tax due is an essential part of the GSTR 3 filing process. Taxpayers can only pay the charges online through the GST system, which is both simple and ensures timely payments.
  • The tax payment situation can be followed in section B of the GSTR 3 form, which provides a complete summary of the tax obligation and payments made during the period of interest.
  • One important rule to remember is that the GSTR 3 form is permanent after submission, emphasising the need to carefully validate every piece of data before submitting it.

Modifications or adjustments can only be done throughout the succeeding return period. The significance goes from penalty minimisation to keeping perfect business records and aiding operations to run smoothly. Your dedication to detail in filling out the GSTR 3 form reflects your company’s commitment to compliance and excellent governance.

The Primary Purposes of GSTR 1 and GSTR 2 in GSTR 3 Filing

The operation of the GSTR 1 and GSTR 2 forms has a significant effect on the entire submission procedure for GSTR 3.

To put it simply, the GSTR 1 form explains your exterior suppliers, while the GSTR 2 form describes your inward supplies. The data provided on each of these applications is instantly supplied on the GSTR 3 form.

  • If there are any variations or faults between GSTR 1 and GSTR 2, both of these will be recorded in the GSTR 3 form. This auto-population technique highlights the significance of careful thinking and accuracy when filling out the GSTR 1 and GSTR 2 forms.
  • As a result, businesses must ensure that all of the information on these two forms is accurate and up to date in order to complete the GSTR 3 filing procedure successfully. This avoids potential risks of errors in the GSTR 3 form, which might end up in penalties and other adverse effects. As a result, the GSTR 1 and GSTR 2 forms play a critical part in the GSTR 3 filing process, not just as foundational.

How to File GSTR 3 Return Form?

Completing your GSTR 3 return form may be a simple process if you follow the proper procedures. 

  • Begin by visiting the GST portal and signing into your account. Once logged in, navigate to the ‘Services’ page, then ‘Returns’, and finally, ‘Returns Dashboard’. From there, specify the financial year and applicable tax period for which you are submitting.
  • When you have verified the authenticity of the details, the following step is the payment of the tax liabilities. You can accomplish this by using the digital cash register or the online credit ledger. After making your payment, click on ‘File GSTR 3’ to proceed with filing your GSTR 3. The system will modify the GSTR 3’s status to ‘Filed’ following successful submission.
  • Always remember that speed and accuracy are critical in this procedure to avoid consequences and remain in conformity with the regulations governing taxes. As a result, be sure that you examine all of the data and pay on time.

Also Read: How To File GSTR-3: Things To Consider & Best Practices


Adhering to GST standards and correctly submitting GSTR 3 is critical for all firms operating in India. Familiarising an individual with the details of being eligible, structure and filing requirements is critical for avoiding fines and maximising tax savings. Being on time is essential in filing the return by the 20th day of the subsequent month in order to avoid late fees.

As necessary is the form’s precision in documenting all of the necessary information since it reflects GSTR 1 and GSTR 2 filings. This careful, systematic method of data validation helps to ensure that the General Sales Tax 3 filing process runs effortlessly and effectively. In conclusion, an extensive knowledge of GSTR 3 returns being submitted is not only helpful when preserving a good reputation with tax authorities, but it additionally indicates how committed an organisation is to transparency and good management.

While the procedure for filing a GSTR 3 Return may appear complicated, a buyer can claim a refund at the time of tax filing. For additional informative blogs, head over to


  • What constitutes GSTR-3?

The monthly return, GSTR-3, is submitted on the twentieth of the month. It contains all of the information on tax due, input tax credit, and towards the outside and inward supply. The monthly total tax liability is computed using this form. It also aids in the balancing of the GST received from the taxpayer and the GST paid.

  • For whom is GSTR 3 acceptable?

The person needs to have a 15-digit PAN-based GSTIN and be registered for GST. Additionally, the person needs to have submitted both GSTR 1 and GSTR 2 reports. The person is liable to the government for the total amount of GST they owe before submitting the GSTR 3 form.

  • What are the requirements for registering a GST return?

People who make above the specified limits of Rs. 20 lakhs for services and Rs. 40 lakhs for products are required to register for GST and submit GSTR-3 returns on a regular basis. Additionally, anyone who supplies products or services beyond state lines is required to register for GST and submit returns.

  • What exactly is the GSTR 3 rule?

If the actual responsibilities reported in GSTR-3 are greater than the amounts declared and paid in GSTR-3B, you will be responsible for paying the additional tax and interest on the difference. 

A GSTR-3 return can only be considered genuine once it is filed after the whole payment of taxes has been completed.

  • What happens if GSTR 3 is not filed for a number of months?

A fee for late submission and interest of 18% annually are assessed for the incomplete GSTR-3 return filing. Both overdue penalties and interest are going to be charged if the tax was paid by the deadline, although the GSTR-3B was submitted beyond it.

  • What makes GSTR-3 and GSTR-3B different from one another?

Information from inbound and outgoing suppliers, input tax financing, and tax liabilities are all included in GSTR-3. Meanwhile, the GSTR-3B is a simplified version that just needs the overall turnover, the tax liability derived from outbound products, and the input tax credit.

  • Which ones are the GSTR-3 applicants?

The fact that when there are any financial transactions throughout the month, each registered person must file a GSTR-3. However, the following registered individuals aren’t subject to filing GSTR-3:

  • Distributors of Input Services
  • Dealers of Compositions
  • A taxable individual who is not a resident
  • Individuals eligible to receive TCS
  • Those who can deduct TDS
  • How to revise GSTR -3?

To amend GSTR-3, you cannot directly revise the filed return. Instead, rectify any errors in the following month’s GSTR-1 and GSTR-2 returns, as GSTR-3 is auto-generated and lacks editing capabilities.

  • How to reconcile GSTR-3 and GSTR-3B?

 To reconcile GSTR-3 and GSTR-3B, after filing GSTR-3 for July and August 2017, any disparities between actual liabilities and those declared in GSTR-3B will be automatically updated by the system. GSTR-3B is a simplified return form introduced by the CBEC for those months.

  • Is filing of Form GSTR-3B mandatory even if there is no business in the particular tax period?

Even in the absence of business activity during a specific tax period, all normal and casual taxpayers are required to file Form GSTR-3B as it is mandatory.

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Niharika Kapoor Content Writer
Niharika is a Freelance Content Writer and Translator with a Master of Arts in Literature. She has 5+ years of working in the same and has worked in different industries.

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