GSTR-3

1. What is GSTR3?

GSTR-3 is a monthly return with the summarized details of sales, purchases, sales during the month along with the amount of GST liability. This return is auto-generated pulling information from GSTR-1 and GSTR-2.

2. Why is GSTR-3 important?

GSTR-3 will show the amount of GST liability for the month. The taxpayer must pay the tax and file the return.

3. When is GSTR-3 due?

As per 22nd GST Council meeting of 6th October 2017

• Businesses with annual turnover up to 1.5 crores will submit quarterly returns. Taxes will be paid quarterly.
• Due dates of Aug & Sep will be declared later.
• Switch over to quarterly will happen from Oct-Dec 2017 cycle

(More details will be announced by the Govt.)

As per Act:

Due Date for Filing GSTR-3 is 20th,22nd,24th of next month.
There is a 5-day gap between GSTR-2 & GSTR-3 filing to correct any errors and discrepancies.

For business’ with turnover less than 1.5 crores, quarterly returns are applicable whose due dates will be announced later.

4. What happens if GSTR-3 is not filed?

If GSTR-3 return is not filed then the GSTR-1 of the next month cannot be filed. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.

5. What happens if GSTR-3 is filed late?

If you delay in filing, you will be liable to pay interest and a late fee.

Interest is 18% per annum. It has to be calculated by the tax payer on the amount of outstanding tax to be paid. Time period will be from the next day of filing 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.

6. Who should file GSTR-3?

Every registered person is required to file GSTR-3 irrespective of whether there are any transactions during the month or not.

However, these registered persons do not have to file GSTR-3–

• Input Service Distributors
• Composition Dealers
• Non-resident taxable person
• Persons liable to collect TCS
• Persons liable to deduct TDS
• Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)

7. How to revise GSTR-3?

GSTR-3 once filed cannot be revised. Any mistake made in the return can be revised in the next month’s GSTR-1 and GSTR-2 returns. Direct revision in GSTR-3 is not possible as GSTR-3 is auto-generated without provision for editing.

8. How will GSTR-3 and GSTR-3B be reconciled?

GSTR 3B is a simple return form introduced by the CBEC for the month of July and August 2017. GSTR-3 will also have to be filed for July & August 2017.

On filing the GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system will update the (difference) between GSTR 3B and GSTR 3 automatically. In case, actual liabilities in GSTR-3 are higher than those declared and paid with GSTR-3B, you will have to pay the extra amount tax along with interest on the extra amount.

GSTR-3 must be filed only after paying entire tax liability otherwise it will not be treated as valid return.

If taxpayer has filed an invalid return and later on he wants to pay the remaining liability then he has to file the Part B of GSTR-3 again.

9. Details to be provided in GSTR-3

There are some headings in GSTR-3 format prescribed by the government.

We have explained some heading along with the details required to be reported under GSTR-3.

1. Provide GSTIN

Provisional id can also be used as GSTIN 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)

Month, Year – Mention the relevant month and year for which GSTR-3 is being filed.

There are 2 parts of GSTR-3. Part A is auto-populated from GSTR-1, GSTR-1A & GSTR-2 and Part B must be filled up manually.

3. Turnover

This heading will include total turnover of all types of supplies. Total turnover will be bifurcated between:

(i) Taxable Turnover [other than zero rated]: This includes the normal sales to both registered and unregistered buyers.

(ii) Zero rated supply on payment of tax: This will include exports which are paid by paying IGST (later reclaimed as refund)

(iii) Zero rated supply without payment of tax: This will include exports which are paid with bond/LUT.

(iv) Deemed exports: These are items sold to SEZ (the goods do not actually leave the country)

(v) Exempted: These are goods/services which do not attract GST.

(vi) Nil Rated: These are goods/services which attract 0% GST.

(vii) Non-GST supply: These are items like petrol, electricity which are outside the scope of GST.

Due Dates of Filing GST Returns

These returns are as per the CGST Act*