What is Form GSTR-3B
Form GSTR-3B is a vital component of India’s Goods and Services Tax (GST) regime, serving as a monthly self-declared summary return for registered taxpayers. It provides a consolidated snapshot of a taxpayer’s GST obligations, enabling them to report tax liabilities on outward supplies, claim eligible Input Tax Credit (ITC), and settle the net tax payable for a given period. Whether you’re a business supplying goods, services, or handling reverse charge transactions, filing Form GSTR-3B ensures timely compliance with GST regulations. This straightforward yet essential return simplifies the process of meeting monthly tax responsibilities, making it a cornerstone of efficient GST compliance.
Legal Provisions
Section 39(1)
[(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed:
Provided that the Government may, on the recommendations of the Council, notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictions as may be specified therein.
Rule 61
(1) Every registered person intending to furnish return on a quarterly basis under proviso to sub-section (1) of section 39, shall in accordance with the conditions and restrictions notified in this regard, indicate his preference for furnishing of return on a quarterly basis, electronically, on the common portal, from the 1st day of the second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised:
Provided that where such option has been exercised once, the said registered person shall continue to furnish the return on a quarterly basis for future tax periods, unless the said registered person,-
(a) becomes ineligible for furnishing the return on a quarterly basis as per the conditions and restrictions notified in this regard; or
(b) opts for furnishing of return on a monthly basis, electronically, on the common portal:
Provided further that a registered person shall not be eligible to opt for furnishing quarterly return in case the last return due on the date of exercising such option has not been furnished.
(2) A registered person, whose aggregate turnover exceeds 5 crore rupees during the current financial year, shall opt for furnishing of return on a monthly basis ,electronically, on the common portal, from the first month of the quarter, succeeding the quarter during which his aggregate turnover exceeds 5 crore rupees.]
Rule 61A
(1) Every registered person intending to furnish return on a quarterly basis under proviso to sub-section (1) of section 39, shall in accordance with the conditions and restrictions notified in this regard, indicate his preference for furnishing of return on a quarterly basis, electronically, on the common portal, from the 1st day of the second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised:
Provided that where such option has been exercised once, the said registered person shall continue to furnish the return on a quarterly basis for future tax periods, unless the said registered person,-
(a) becomes ineligible for furnishing the return on a quarterly basis as per the conditions and restrictions notified in this regard; or
(b) opts for furnishing of return on a monthly basis, electronically, on the common portal:
Provided further that a registered person shall not be eligible to opt for furnishing quarterly return in case the last return due on the date of exercising such option has not been furnished.
(2) A registered person, whose aggregate turnover exceeds 5 crore rupees during the current financial year, shall opt for furnishing of return on a monthly basis ,electronically, on the common portal, from the first month of the quarter, succeeding the quarter during which his aggregate turnover exceeds 5 crore rupees.]
Who needs to file GSTR 3B?
Every registered person other than:
- Input Service Distributor;
- a Non-Resident Taxable person;
- A composition dealer;
- A person deducting tax at source
- A person collecting tax at source (i.e E-Commerce operator and supplier of OIDAR services located in non-taxable territory providing services located to non-taxable online recipient.
However, the Government may on the recommendations of the council notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to the specified conditions and restrictions.
Key Details to be included in GSTR-3B
- Outward Supplies – Details of outward taxable supplies as declared in GSTR-1
- Inward Supplies liable to reverse charge – All supplies which are liable to Reverse charge Mechanism (RCM) as per Section 9(3), Section 9(4) and Section 9(5) of CGST Act 2017 and Section 5(3),Section 5(4) and Section 5(5).
- Eligible Input Tax Credit and
- Payment of Taxes
Filing Frequency
- Monthly returns – Mandatory for taxpayers with an annual turnover exceeding ₹5 crore or those who have opted for monthly filing.
- Quarterly Filing: Available for taxpayers with an annual turnover up to ₹5 crore under the QRMP (Quarterly Return Monthly Payment) scheme.
GSTR – 3B Due Dates
- Monthly GSTR-3B – on or before 20th of the month succeeding the month for which the return is being filed.
- Quarterly GSTR-3B – on or before 22nd or 24th of the month succeeding the quarter for which the return is being filed.
🔗 For comprehensive month-wise due dates, refer our compliance calendars posted in our Resources Section.
How to File GSTR-3B?
Filing GSTR-3B is straightforward through the GST portal. Follow these steps:
- Login to the GST portal by using the login credentials.
- Navigate to Returns: Go to the ‘Services’ tab, select ‘Returns,’ and choose ‘Returns Dashboard.’
- Select the Period: Select the Financial Year > Quarter > Period of filing.
- Prepare GSTR-3B – Click on the Prepare online or upload data using the offline tool.
- Enter the Details – Enter the details of outward supplies, Inter-State Supplies, Eligible ITC and Exempt, nil and Non GST inward supplies.
In case of Nil return click on the Checkbox – File NIL GSTR-3B. - Save the details – Click on save GSTR-3B and proceed to payment tab.
- Payment of Tax – If the output tax liability is fully offset with the available balance in the electronic credit ledger, no payment is required to made. In case there arises a tax liability after offsetting the eligible credit create a challan to make payment.
- Make Payment / post Credit Ledger – After making the payment , if required the additional cash required will be Zero, then click on Make Payment / post Credit Ledger. There arises a warning for utilization of Credit. Click on Yes to continue.
- File with DSC/EVC: File the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Form GSTR-3B
The summary of Outward supplies, inward supplies liable to reverse charge and Eligible ITC is notified in Form GSTR-3B. The same can be accessed from here:
Tools available for Filing GSTR-3B
- Online Filing – GSTR-3B can be filed online by logging into the portal using the login credentials and by selecting prepare online tools
- Offline Filing – Utility can be downloaded from the GST portal for bulk uploads. Click here to download the offline utility
Maximum Time limit for Filing GSTR-3B
The maximum time limit up to which a registered person can furnish Form GSTR-3B for a tax period is Three Years from the due date of furnishing such return.
This time limit can be extended by the Government for a registered person or for a class of persons subject to such conditions and restrictions.
Rectification of errors/omissions
Form GSTR-3B cannot be revised/rectified after the form is filed. Any need to revise or rectify the details in the filed form can be made only in the future GSTR-3B.
Time limit for making rectification
The maximum time limit within which the rectification of errors/omissions can be made is earlier of the following dates:
- 30th day of November following the end of the financial year to which such details pertain or;
- Actual date of filing of the relevant annual return. The due date for filing Annual return is 31st December of the next financial year.
Note : In annual return is filed before 30th November of next financial year then no rectification of errors/omissions in return pertaining to the said financial year would be permitted thereafter.
Common Mistakes to avoid while filing GSTR-3B
- Mismatch Between GSTR-1 and GSTR-3B – Reconcile the data with filed form GSTR-1 to avoid either excess payment or short payment of taxes and also for passing on the credit to the recipient correctly.
- Missing Reverse Charge Entries – Many taxpayers forget to report liabilities under the Reverse Charge Mechanism (RCM) or fail to discharge them correctly. Both the liability and ITC should be reflected accurately.
- Wrong ITC Claim – Claiming ITC without matching it with GSTR-2B can result in penalties and reversal. Ensure that only eligible ITC is claimed.
- Carrying Forward Ineligible or Blocked Credits – ITC on items like motor vehicles, personal expenses, etc., is not allowed—avoid claiming it.
- Late Filing and Interest Miscalculation – Delay in filing attracts late fees and interest. Also, ensure correct interest calculation on delayed tax payment.
- Failure to Save a Draft Before Submission – Submitting without verifying can lead to irreversible errors. Always save and review the draft before final submission.
Penalties and Interest for Non- Compliance
Failure to file GSTR-3B on time attracts late fees and interest as follows:
1. Late Fee (Penalty):
As per the GST Act, the late fee is applicable per day of delay, subject to a maximum limit.
| Type of Return | Late Fee per Day |
|---|---|
| With Tax Liability | ₹50 per day (₹25 CGST + ₹25 SGST) |
| Nil Return (No tax liability) | ₹20 per day (₹10 CGST + ₹10 SGST) |
2. Interest on Delayed payment:
| Particulars | Interest Rate |
|---|---|
| Tax payable on delayed payment | 18% per annum |
| Excess ITC wrongly claimed or reduced output tax liability | 24% per annum |
Conclusion
Form GSTR-3B plays a crucial role in the GST compliance framework, serving as the foundation for monthly tax reporting and payment. Filing it accurately and on time not only ensures a smooth flow of Input Tax Credit (ITC) but also helps taxpayers avoid unnecessary interest, penalties, and departmental notices.
Timely and precise GSTR-3B filing is not just a statutory obligation but a smart business practice to ensure financial discipline and smooth operations under the GST regime.
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