GSTR-3 is a monthly return which is auto generated after accumulating the information from GSTR-1 and GSTR-2. It is a summary of sales, purchases, sales during the month. GSTR-3 will show the amount of GST liability for the month. The taxpayer must pay the tax and file the return.
- Who should file GSTR-3?
Every registered person has to file GSTR-3 even if there are no transactions during the month.
However, these registered persons do not have to file GSTR-3 –
2. When is GSTR-3 due?
Generally, taxpayers have to file the consolidated GSTR-3 on the 20th of the next month. However as per GST Council meeting, taxpayers can submit GSTR-3 for the month of July up to 11th December 2017.
3. What happens if GSTR-3 is not filed?
If taxpayers do not file GSTR-3 return, then they cannot file GSTR-1 of the next month. Hence, late filing of GST return will ultimately lead to heavy fines and penalty.
4. What happens in case of late filing?
If you delay in filing, you will have to pay interest and a late fee.
Interest is 18% per annum. The taxpayer will calculate it on the amount of outstanding tax. Time period is from the next day of filing (16th of the month) to the date of payment.
Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. Maximum is Rs. 5,000.There is no late fee on IGST.
5. How to revise GSTR-3?
One cannot revise GSTR-3 once filed. The taxpayer can revise any mistakes in the next month’s GSTR-1 and GSTR-2 returns. Direct revision in GSTR-3 is not possible since GSTR-3 is auto-generated. It doesn’t have a provision for editing.
6. How to reconcile GSTR-3 and GSTR-3B?
GSTR 3B is an interim return form introduced by the CBEC for the month of July to December 2017. This return is a summary return in which the taxpayer has to declare the consolidated value of tax liability and eligible Input Tax Credit.
In the regular return i.e. GSTR-3, an assesse has to declare invoice wise and rate wise details. On filing the GSTR 3, if the actual liabilities are different from those declared in GSTR 3B, the difference between GSTR 3B and GSTR 3 will be updated automatically. If the actual liabilities in GSTR-3 are higher than those declared and paid with GSTR-3B, the assesse will have to pay extra tax amount as well as interest on the extra amount.
Details required to file GSTR-3
1. GST Identification Number– Use Provisional ID if you do not have a GSTIN.
2. Name of the taxpayer– Name of the taxpayer including legal and trade name will be auto populated
3. Month and year- Mention the relevant month and year for which you are filing GSTR-3.
4. Turnover- Bifurcation of total turnover is as follows:
- Taxable Turnover [other than zero rated]
- Zero rated supply on payment of tax
- Zero rated supply without payment of tax
- Deemed exports
- Nil Rated
- Non-GST supply.
4. Outward Supplies: All sales and supplies made to customers. This data can be generated automatically using the data that you recorded under the GSTR-1.
- Inter-State Supplies – Net supply for the month, including:
- taxable supplies,
- supplies made under reverse charge,
- zero rated supplies made with payment of IGST, and
- online sales through an e-commerce channel/operator.
- Intra-State Supplies – Net supply for the month, including:
- taxable supplies within the same state (with or without reverse charge) and
- online sales through an e-commerce channel/operator.
- Tax effect of amendments made in respect of outward supplies: This section displays:
- the change in tax liabilities i.e. the tax amount you need to pay to the government and
- tax credits i.e. the amount that will be refunded back to you due to invoice modifications and
- other sales documents issued for this month.
5. Inward Supplies attracting GST on reverse charge:
All purchases and supplies received from vendors during this month where you pay GST directly to the government on behalf your vendors. This data will be automatically generated using the data from your GSTR-2.
- Inward supplies on which tax is payable on reverse charge basis (both inter-state and intra-state).
- Tax effect of amendments in respect of supplies attracting reverse charge: Whenever you change the amount on your purchase documents, the ITC you get from those transactions also changes. This affects the amount of tax you owe to the government. The government has to either collect any excess amount that is pending or refund the excess tax. The data under this section enables the government to do that by keeping track of every change in your tax liability that arise due to modifications made to purchase invoices given by unregistered vendors (for which you paid tax on reverse charge basis).
6. Input Tax Credit: The government will give you the tax you paid on inward taxable supplies (including imports) as credit.
- You can use this credit to reduce or offset the amount of tax you have to pay against the sales. This table captures all your ITC including those received from ISD.
- It also captures the summary of all the debit notes and credit notes received during the current tax period.
7. Addition and reduction of amount in output tax for mismatch and other reasons: Mismatches in Input Tax Credit and tax liability between the original returns and any amendments filed for them during the current tax period. (Information gathered from your GSTR1 and GSTR-2).
- ITC claimed on mismatched or duplication of invoices or debit notes.
- Tax liability on mismatched credit notes.
- Reclaim on rectification of mismatched invoices/Debit Notes.
- Reclaim on rectification of mismatch credit note.
- Negative tax liability from previous tax periods.
- Tax paid on advance in earlier tax periods and adjusted with tax on supplies made in current tax period.
- Input Tax credit reversal/reclaim.
8. Total Tax Liability for the month:
Upon providing the details of sales and purchases for this month, the GSTN will calculate the tax that you have to pay for the month under CGST, SGST and IGST, and display that data. Tax liability on:
- Outward supplies
- Inward supplies under reverse charge
- Due to ITC reversal or reclaim
- Due to mismatch, rectifications and other reasons.
9. TDS and TCS credit received –
- TDS credit received during the month: Details of all the transactions where tax is deducted tax at source. Fetched from the GSTR-2 and the GSTR-7.
- TCS credit received during the month: If you are an e-commerce seller, then any Tax Collected at Source by your e-commerce operator on your online transactions is listed here. The system fetches the data from your GSTR-2 and the GSTR-8 that your e-commerce operator files. .
10. Interest liability: Total interest you owe to the government for various reasons (on account of mismatches in tax liability, ITC claimed, ITC reversal or delay in tax payments or filing returns).
11. Late Fee: Any late fees payable under different tax heads (central, state and union territory GST)
12. Tax payable and paid:
Here you have to document the tax that you have to pay under IGST, CGST, SGST or UTGST and Cess. You can obtain this using the data on your GSTR-1 and GSTR-2 or from the tax reports on your accounting software. Under GST, you can pay tax in two ways.
13. Interest, Late Fee and any other amount (other than tax) payable and paid: The tax authorities levies these penalties on taxpayers who fail to comply with the GST law.
- Separated by type of tax and tax heads
- Applicable only if you broke the GST law at some point.
14. Refunds Claimed from Cash Ledger: If the tax that you owe is less than the projected amount, then you will get a refund of the difference between the two. You can find the details of such instances under this section.
15. Debit entries in electronic cash/credit ledger for tax/interest payment: Auto-filed once you pay taxes and submit your returns.
The GST Committee will announce the dates
for filing GSTR-2 and GSTR-3
for the months from July 2017 to March 2018.