GST was introduced on July 1. But were people ready to file returns? It takes time to adapt to any sudden change. But, progress should be there. Right? This Form GSTR 3B is a shock absorber towards the sudden change GST brought in.
How is GSTR 3B a shock absorber?
GSTR 3B is a simple form for filing summary of sales and purchases for the month of July and August. That means rather than filing compete return (GSTR-1, GSTR-2 and GSTR-3), you only need to file a summary of return, highlighting only total purchases and sales for the month, showing GST charged and paid thereon.
Due Date for GSTR 3B?
Last date for filing GSTR 3B for the month of:
July: 20th August, 2017
(Note: The government on Thursday gave some relief to taxpayers availing of transitional input tax credit under the goods and services tax (GST) regime by giving them time till 28 August to file tax returns)
August: 20th September, 2017
After that, no, there won’t be shock absorbers, since you must have acquainted with GST procedures by now. You will have to file regular returns GSTR-1, GSTR-2 and GSTR-3 in September. Arrey yes, you also need to file regular returns for July and August in September. Thankfully, the efforts you put in to file GSTR 3B for July and August won’t get wasted as some portions of Part B of GSTR 3 will get auto populated from GSTR 3B filed earlier.
Who needs to file GSTR 3B?
Every GST registrant must file GSTR 3B. Even if there were no transactions on which GST was charged or GST was paid, a Nil return has to be filed. Moneyम्जी repeats, 3B Filing is Aavashyak for all the GST registrants.
However, following persons need not file GSTR 3B:
- Input Service Distributors
- Composition Dealers
- Non Residents, who are taxable
- Suppliers of OIDAR (Online Information and Database Access or Retrieval Services)
Stepwise Procedure to file GSTR 3B?
Specify the Month and Year for which return is being filed
- Provide GSTIN (you can use your provisional id as your GSTIN if you do not have a GSTIN)
- Legal Name of the Registered Person [this field is auto populated after entering GSTIN]
- 1. Outward supplies and inward supplies on reverse charge i.e. details where tax is payable by you
These details are further segregated into specific supplies.
You need to provide total of taxable value, IGST, CGST, SGST and Cess. Let’s get into nitty gritty.
(a) Outward taxable supplies – Here, you need to include only those supplies on which GST has been charged by you. Do not include supplies which are zero rated, or have a nil rate of tax or are exempt from GST. These must be provided separately.
Value of Taxable Supplies = Value of invoices + value of debit notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices
(b) Outward taxable supplies (zero rated) – Here, you only need to include those supplies on which GST rate is zero. Zero rated supplies are exports or supplies made to SEZ.
(c) Other outward supplies (nil rated, exempt) – Here, you have to include supplies which are exempt from GST or are nil rated. Nil rated supplies are those for which the GST rate is nil. Or which have been kept exempt from GST.
(d) Inward supplies (liable to reverse charge) – This part caters to reverse charge. You have to provide details of purchases made from unregistered dealers on which reverse charge applies.
(e) Non-GST outward supplies – This part belongs to supplies, which are not part of GST. For eg, alcohol and petroleum products.
3.2 Of the supplies shown in 3.1(a) above, details of inter-state supplies made to unregistered persons, composition taxable persons, and UIN holders.
Under this head further break up of ‘Outward taxable supplies’ in the above table must be provided. Here you must mention the inter-state supplies which are made to
- Unregistered persons
- Composition Dealers
- Those who hold a UIN
UIN holders means those who have a Unique Identification Number instead of a GSTIN. These are specialized agencies of the UNO (United Nations Organisation) or an embassy. Or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947. Any other persons may also be notified by the Commissioner.
- Eligible ITC
These are the details required for input tax credit. These must be provided separately for IGST, CGST, SGST, UTGST and Cess. Only total values have to be reported and invoice level information is not required.
(A) ITC Available (whether in full or part) – This information must be broken down into ITC on:
- Import of goods,
- Import of services,
- Inward supplies on reverse charge (other than on import of goods and services reported above)
- Inward supplies from your Input Service Distributor (ISD). Basically, your head office registered as an ISD under GST
- All other ITC
Our experts can help you calculate the amount of credit to be reported here.
Input tax credit on closing stock is not required to be reported here, as this input tax credit must be first reported by filling up TRANS-1 and TRANS-2 forms.
(B) ITC Reversed
(1) As per rules 42 & 43 of CGST Rules – These rules require that input credit must be reversed for goods and services, where they have been used partly for business and partly for other purposes, to the extent not used for business.
Similarly, input credit reversal is also required where supplies include taxable, exempt and nil rated supplies. In the same manner, input credit related to capital goods used for business and other purposes, for taxable, exempt, nil rated supplies must also be reversed to the extent not used for business. Detailed formulae have been prescribed on how to go about doing this.
(2) Others – Any other ITC which has been reversed in the books by you.
(C) Net ITC available (A) – (B)
(D) Ineligible ITC
(1) As per Section 17(5) – Report credit which is entirely not available to you.
(2) Others
- Provide values of exempt, nil rated, and non-GST inward supplies: Here, you have to report any purchases made by you of goods or services, which are from a composition dealer, are exempt, nil rated or not covered by GST at all. This information must be broken down into inter-state and intra-state.
- Payment of Tax
Under this section you have to report the final tax payable by you on taxable supplies made by you, which will match with 3.1.(a) above. The amount is separately reported under IGST, CGST, SGST and UTGST. Also report the credit which has been availed against these. This amount is under 4(C). The balance tax must be deposited by you and appears under column 8. If any interest or late fee has been deposited that must also be reported.
6.2 Do note that for now no TDS or TCS have to reported or collected.
This section is not applicable for now.