The introduction of GST laws has streamlined the tax system, eliminated the cascading impact of tax on consumers and improved compliance. The various returns specific to the types of businesses that the taxpayers must submit often leads to confusion. Hence the taxpayers must be familiar with the process of GST return filing to avoid delays in submission leading to late fees and interest.
Filing GSTR-3B return is mandatory as per GST laws for all registered taxpayers in India. Non-filing or delayed filing can attract penalties, interest and even cancellation of GST registration. Hence it is important for all taxpayers to be familiar with the GST return filing and due dates for GSTR-3B, which is a self-assessment return, consisting of details of inward and outward supplies and tax liabilities of businesses. Let us discuss the steps to file, filing frequency and due dates in detail:
Filing Frequency of GSTR-3B
All registered taxpayers need to file the tax form GSTR-3B with the required information related to their income, sales, and related purchases, services, and other costs. This return is useful for the tax authorities to calculate their net tax liability. GSTR-3B is a self-assessed summary return and does not contain details of invoices. Before the final submission of the return, the accurate tax, and late fees if any must be paid or the return cannot be filed.
Due Dates for Filing GSTR-3B
For regular taxpayers, the due date for filing GSTR-3B is the 20th of the month following the month of tax deduction. For example, the GSTR-3B for the month of January must be filed by February 20th.
Small taxpayers with businesses having a turnover of up to 5 crores in the previous financial year have the option to file GSTR-3B quarterly and opt for the QRMP scheme. This was provided to ease the compliance burden on small businesses and promote their business. Quarterly filing is subject to certain conditions and must be opted at the beginning of the financial year, electronically on the GST portal.
Taxpayers who opt for quarterly filing of GSTR-3B have different due dates based on the tax period. For the first quarter-April to June, the due date is 22nd of the month following the end of the quarter. For the second quarter-July to September, the due date is 22nd October. For the third quarter-October to December, the due date is 22nd January. And for the fourth quarter-January to March, the due date is 22nd April.
Further they are required to pay the taxes that are due monthly by depositing the amount in the electronic cash ledger equal to:
- Where GSTR 3B has been filed quarterly, 35% of the tax liability that was paid in the previous quarter.
- Where the return has been submitted monthly previously, 100% of the total tax liability paid for the last month of the immediately preceding quarter.
Also Read: Common Errors and Mistakes in GSTR-3B Filing
Important Points to Consider before Filing GSTR-3B.
- Filing on Time: Filing GSTR-3B is mandatory and must be filed on time to avoid penalties and interest. The due date is the 20th of the succeeding month following the month of tax deduction.
- Accuracy of Data: It should be ensured that all the details reflected in the return are accurate because errors or discrepancies can lead to penalties and rejection of the return.
- Reconciliation of Invoices: It is important that the invoices issued and received are reconciled to ensure that the correct amount of tax is paid. It should also be ensured that all the invoices are uploaded in the GST portal, because the total supplies summary in GSTR-3B form should match with the supplies mentioned in GSTR-1 form.
- Claiming Input Tax Credit (ITC): The option to claim input tax credit on purchases made for the business is allowed while filing GSTR-3B. While doing so accuracy of invoice details uploaded in the portal has to be ensured as any mistakes can lead to rejection of the return.
- Filing Nil Returns: Even though the business has not made any sales/purchases during the period, it is mandatory to file ‘NIL’ returns. Failing to file can lead to penalties and cancellation of GST registration.
- What is the purpose of filing GSTR 3B?
Answer: The purpose of filing GSTR 3B is to know the exact tax liability and the eligible input tax credit (ITC) for the tax period and pay the tax after adjusting ITC within the due date.
- Can the GSTR 3B form be previewed before submitting?
Answer: Yes, the GSTR 3B form can be previewed after entering all the details and before submitting.
Related Read: FAQ’s On GSTR-3B Nil Return Filing
Filing GSTR 3B is mandatory under GST laws and non-filing or delayed filing can attract penalties, interest, even cancellation of GST registration. It is a self-assessment return which helps the taxpayer to calculate the exact tax liability and pay in time. Since it is a summary of the business’s outward and inward supplies, it helps in reconciliation of other returns and identify the discrepancies and rectify them in a timely manner. It is also important for availing the input tax credit for the business. Timely and accurate filing of GSTR 3B helps the business to be tax compliant and build up a good reputation in the industry, which is beneficial to it in the long run.