The GSTR-3 is a document containing the details of all transactions during the month, including purchases, sales, and interstate movement of stock for a particular month return is auto-generated based on the information available inside the AND GSTR2 That has been filed for the same tax period. This return is also not applicable to non-resident taxpayers.
Mandates To file the GSTR-3:
- You should have filed GSTR-1 and GSTR-2.
- You either need an OTP from your registered phone to verify your return using an EVC (electronic verification code) or a digital signature certificate (of class 2 or higher). You can also file your GST RETURN using an Aadhar-based e-sign.
- GSTR-3 is a monthly return with the summarized details of sales, purchases, and sales during the month along with the amount of GST liability. This return is auto-generated pulling information from GSTR-1 and GSTR-2.
- GSTR 3 is to be filed monthly and the taxpayers must report the details of their inter-state movement of the goods, sales, and purchases for the month along with the tax liability. This is a return that must be filed by the taxpayers who are registered under GST and have not opted for the composition.
Meaning of GSTR-3
Form GSTR-3B is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for a particular tax period and discharge these liabilities. A normal taxpayer is required to file Form GSTR-3B returns for every tax period
GSTR-3B is a monthly self-declaration to be filed by a registered GST dealer along with GSTR 1 and GSTR 2 return forms. It is a simplified return to declare summary GST liabilities for a tax period. IMPORTANT: You have to file GSTR-3B even when there has been no business activity (nil return).
GSTR 3B return must be filed even by small taxpayers with an annual turnover of less than Rs. 5 crores. A Quarterly Returns with Monthly Payment (QRMP) scheme allows you to pay quarterly rather than monthly.
If a registered person opts to pay tax under the composition scheme from the beginning of a financial year, then the taxpayer must file monthly GST returns on the 10th, 15th, and 20th of each month and monthly returns till the due date of furnishing the return for September of the succeeding financial year or furnishing
40 Lakhs (for goods) and Rs. 20 lakhs (for services) are required to register for GST and pay taxes on their taxable goods and services. Businesses with a yearly turnover of less than Rs. 40 Lakhs are not required to register for GST but can choose to register for GST voluntarily.
Scope of GSTR-3
- GSTR-3 is a monthly return with the summarized details of sales, purchases, and sales during the month along with the amount of GST liability. This return is auto-generated pulling information from GSTR-1 and GSTR-2.
- The individual must be registered under GST and have a 15-digit PAN-based GSTIN.
- The individual must have also filed their GSTR 1 and GSTR 2 returns.
- Before filing the GSTR 3 form, the individual is required to pay the Owed amount of GST to the government. The information regarding this can be accessed inside the GSTR 3 summary. This summary is generated on the GST portal before the filing of returns in GSTN.
- The individual will also need to keep handy their OTP which they would receive on their registered phone number. This OTP will be required if the individual chooses to file through the EVC option. i.e. the Electronic Verification Code or a DSC i.e. a Digital Signature Certificate. Alternatively, they can also make use of Aadhar-based electronic signatures to file the returns.
- Taxable Turnover (other than the zero-rated ones).
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Zero-rated supply on payment of Tax:
Here, you need to enter all those exports, deemed or otherwise made without a Letter of Undertaking. Owing to this reason, the exporter is liable to pay GST on the exported goods and services. They can get a refund back later.
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Zero-rated supply without payment of Tax:
This refers to exports made along with a LUT or the Letter of Undertaking. This is a letter that enables the exporter to sell goods overseas/to SEZ units without charging GST.
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Turnover from deemed exports:
This refers to the deemed exports are items sold to overseas customers and specialized units. However, in this case, the goods don’t leave the country.
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Turnover from exempted supplies:
This refers to the goods and services that do not attract GST. However, the taxpayer can’t claim a refund on the tax paid on input services and goods that were used to render them.
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Turnover from Nil-rated supplies:
These are the goods that come under 0% GST. However, the taxpayer can claim a refund of tax paid on the input goods and services used for creating them.
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Turnover from non-GST supplies:
This refers to the goods and services that are beyond the dimensions of GST but still attract some local taxes.
Inter-State supplies (Net Supply for the month)
Under this heading, we have:
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Taxable supplies (other than reverse charged and zero-rated supply) [Tax Rate Wise]:
This will have all your sales except the ones on which reverse charge has been applied. It also includes exports.
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Supplies with reverse charge-tax payable by the recipient of supply:
This includes your sales on which the recipient or the buyer pays a reverse charge.
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Zero-rated supply made with payment of IGST:
This includes the exports which are paid by paying IGST. These can be reclaimed later as a refund.
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Out of the supplies mentioned at A, the value of supplies made through an e-commerce operator attracting TCS-[Rate wise]:
This includes the sales made through the E-COMMERCE system. It will also display the GSTIN of the e-commerce operator.
- These sections contain the tax details from that period and the contents of this return are generated automatically based on the information made available on other monthly GST returns that are filed before the GSTR-3 (especially GSTR-1 and GSTR-2 along with any other returns that may apply to your business).
- The GSTR-3A is not a tax return, but a notice generated by the tax authority. It’s issued to a taxpayer who has failed to file their GST returns on time for a particular tax period. Upon receiving the GSTR-3A, the taxpayer will have a maximum of 15 days from the date of default to remedy the situation (including any penalties or late fees).
- The GSTR-3B is a consolidated summary return of inward and outward supplies that the Government of India has introduced as a way to relax the requirements for businesses that have recently transitioned to GST.
- Since a lot of small and medium businesses have been using manual accounting methods, filing returns within the July 2017 deadlines would be difficult for many of these businesses. Hence, from July 2017 to June 2018, tax payments will be based on a simple return called the GSTR-3B.
Format of GSTR-3
The format of GSTR-3 is divided into 13 tables, which are as follows:
1. Table 1 – Details of Outward Supplies and Inward Supplies Made During the Tax Period.
2. Table 2 – Details of Ineligible Input Tax Credit (ITC).
3. Table 3 – Details of Input Tax Credit (ITC) Reversed and Ineligible ITC for Non-Payment of Consideration.
4. Table 4 – Details of Input Tax Credit (ITC) Reversed and Ineligible ITC for Other Reasons.
5. Table 5 – Details of Output Tax Liability on Outward Supplies and Inward Supplies Made During the Tax Period.
6. Table 6 – Details of Input Tax Credit (ITC) and Input Tax Credit (ITC) Reversal for the Previous Tax Period.
7. Table 7 – Details of Interest and Late Fee Payable and Paid.
8. Table 8 – Details of Tax Paid Under Reverse Charge Mechanism.
9. Table 9 – Details of TDS and TCS Credit Received.
10. Table 10 – Details of Integrated Tax Paid.
11. Table 11 – Details of Central Tax Paid.
12. Table 12 – Details of State/UT Tax Paid.
13. Table 13 – These tables contain information regarding the taxpayer’s sales, purchases, input tax credit, output tax liability, interest, late fees payable, and tax paid under the reverse charge mechanism, among other things. The taxpayer must fill in all the relevant details accurately and file the return within the due date to avoid penalties and fines.
Conclusion
In conclusion, GSTR-3 is a monthly return that summarizes the details of sales, purchases, and sales during the month along with the amount of GST liability. It is auto-generated pulling information from GSTR-1 and GSTR-2. To file GSTR-3, the individual must be registered under GST and have a 15-digit PAN-based GSTIN. They must have also filed their GSTR 1 and GSTR 2 returns. It is important to pay the owed amount of GST to the government before filing the GSTR 3 form.
GSTR-3B is a simplified summary return that is filed by taxpayers to declare their summary GST liabilities for a particular tax period. Normal taxpayers must file GSTR-3B returns for every tax period. The scope of GSTR-3 includes various types of taxable turnover, zero-rated supplies, turnover from deemed exports, exempted supplies, and non-GST supplies.
This blog is written by Kratika Pal.
