GSTR-3 shows the amount of GST liability of an individual for the relevant month. The individual must pay the tax and file the return.
GSTR-3 is filed by each registered person. Whether there are any transactions during the month or not but this return has to be filed by each person registered except the following:
Yes,it is mandatory to file GSTR-3, even if there are no transactions.
The basic due date for filing GSTR 3 is the 20th of next month for the current month. There are five days gap between GSTR 2 and GSTR 3 for filing so that rectifications can be done for any error or discrepancies.
In 22nd GST council meeting various regulations are announced. They are as follows:
Various components of GSTR 3 are :
GSTR 3 can be filed online on the GST Portal. The taxpayer has to follow various steps:
There are 15 head in GSTR-3 format that is prescribed by the government.
Each heading along with its details are as under:
GSTIN is the unique number that is Goods and Services Tax Identification Number given to each registered taxpayer. Provisional id can also be used in place of GSTIN if you do not have a GSTIN.
Legal name of the taxpayer and trade is mentioned here. The relevant month and year for which the GSTR 3 is to be filed is also included.
After these headings there are 2 parts of GSTR-3.
Part A is auto-populated from GSTR-1, GSTR-1A & GSTR-2 and
Part B is be filled manually.
PART A which is auto generated includes
This head includes the total turnover of all types of supplies. Total turnover will be divided as follows:
The format is as under:
This head contains a summary of all your sales during the relevant month. The information will be reflected automatically from your GSTR-1.
It is further bifurcated as:
This includes all inter-state sales with the following details-
Total sales except those on which reverse charge applies and exports
These are sales for which your buyer will pay GST under reverse charge
These are exports which are paid by paying IGST which is later reclaimed as refund.
This will contain the portion of sales made through e-commerce. Here the GSTIN of e-commerce operator will also be displayed.
Zero rated supplies made without payment of taxes, i.e., exports through bond or LUT will not be included here .
Amendments of supplies originally made under reverse charge basis will not be included in Table 4.
The format of this head is mentioned right:
4.2 Intra-State supplies (Net supply for the month)
This is similar to the heading inter sale. The only difference is this head will contain details of intra-state sales as well. The format of this head is as follows :
4.3 Tax effect of amendments made in respect of outward supplies
This head includes all the changes made in the sales invoice. If there are any changes in the amount it affects the ITC which has a direct impact on the tax payable to the Government. This may lead to excess or under payment of tax. This head helps to keep a track on the invoices which are changed and those which have an impact on the tax amount.
The format is as follows:
As the name suggests this head contains all the purchases and supplies received during the month. This information is automatically generated from the details recorded under the GSTR-2. It further is bifurcated as:
This includes your purchases where reverse charge is applicable for which you as the buyer will pay GST. It displays both inter-state as well as intra-state sales. Tax liability due to reverse charge is net of invoices, advances paid, debit/credit notes and adjustments of advances if any.
This contains the changes made to the purchases that attract reverse charge. If the amount is changed, the amount of ITC also changes which directly impacts the tax payable which may result in excess or under payment. This heading helps to keep track of invoices which are changed and its impact on the tax amount.
The format of this head is :
This head states ITC on inward taxable supplies which includes imports and ITC received from ISD that is net of debit or credit notes.
This head includes summary of ITC that is available during the month. ITC here is shown separately for:
ITC that is received from Input Service Distributor (ISD) is also displayed here. All ITC will be shown after adjusting debit or credit notes.
This part includes changes made to earlier month’s details and their impact on ITC.
The format of 6th heading is :
Any mismatches in ITC and tax liability when compared to the original returns are mentioned here. It also states any changes filed during the current month. This information will be reflected from GSTR-2. It includes:
This is the most important portion as GST Portal will calculate the total tax liability here under different tax heads such as CGST, SGST & IGST
It will show the following breakup:
The format is given below:
The format for this head is:
Any delay of payment fetch interest to be paid by the taxpayer. This interest is calculated at the rate of 18% per annum. It is calculated by the taxpayer on the total outstanding tax amount to be paid. The time period for this will be from the next day of filing that is the 20th of the month to the date of payment.
This head shows the amount of interest applicable and the reason of applicability of the interest. Breakup into CGST, SGST, IGST & Cess will be given.
If your tax liability has increased due to change in sales invoice and you have to pay interest on the increased amount.
If your tax liability has increased due to a change in purchase invoice and you have claimed an ITC on such invoice. You have to pay interest on the increased amount.
If your ITC claimed was reversed that has increased your tax liability then interest is payable by you.
If you have claimed extra ITC then you are required to pay interest.
if you had paid interest on mismatch and now the interest is reversed or credited back.
If you had an interest liability which you have paid partly, then the balance amount will be carried forward.
This is due to late payment or late filing of return.
Finally, this shows the total interest payable under CGST, SGST & IGST.
The format for this head is as under:
A late fee as a penalty is also applicable along with interest if there is a delay in return filing. Late fee is Rs. 100 per day. The maximum amount as penalty is Rs. 5,000.
This will be displayed as :
Note: There is no late fee for IGST.
The individual has to fill up the appropriate columns with the appropriate amounts.
For example, if Mr X has a tax liability of Rs. 50,000 and ITC of Rs. 20,000, you can opt to pay Rs. 40,000 in cash (fill up column 3) and Rs. 20,000 through ITC (fill up the appropriate columns under 4,5,6).
Remember to follow the ITC claim rules.
The format is mentioned below:
Here, one has to fill the amount payable and the amount paid as interest or late fee with the breakup of tax heads. Note: There is no late fee for IGST.
The format for this head is as follows:
If the tax paid is higher than the actual amount that is to be paid by the individual, then the difference will be refunded to him or her.
14a. Refund from cash ledger can only be claimed only when all return related liabilities for the month have been discharged.
14b. Refund claimed Table 14 will result in a debit entry in electronic cash ledger on filing of valid GSTR 3.
The format below is showing how to fill this head:
This head will be filled automatically when the taxpayer will pay taxes and submit his or her returns.
The format is :
The verification can be done in this format:
The format is :
When the return is filed by the registered taxpayer, an ARN will be generated and SMS and email will be sent on the successful filing of GSTR-3. If the return is invalid, a mail and SMS will be sent to confirm the same. In that case, you have to pay unpaid liability, and then ARN will be generated confirming the same. After successful filing of return electronic ledgers will be updated
When GSTR-3 return is not filed by the individual then the GSTR-1 return next month cannot be filed by him or her. This will result in late filing of GST return that will lead to heavy fines and penalties.
If the individual delays in filing GSTR 3 , he or she will be liable to pay interest and a late fee as penalty.
This interest is calculated by the taxpayer on the total outstanding amount of tax that is to be paid @18% p.a. starting from next day after the due date
The late fee is charged at Rs. 100 per day as per Act under CGST as well as under SGST. So total will be Rs. 200 per day. No late fee is charged for IGST.
The maximum late fee can be Rs 5000.
If GSTR-3 is once filed, it cannot be revised. Any mistake that needs to be revised can only be done in the next month’s GSTR-1 and GSTR-2 returns. GSTR 3 is auto generated without the provisions of editing. Thus direct revision is not possible in GSTR-3.
On filing the GSTR 3, if there will be any difference of liabilities between the actual and that is declared in GSTR 3B, the system will automatically update the details of GSTR 3 and GSTR 3B. If in this case, actual liabilities that are declared in GSTR-3 are higher than those declared and paid with GSTR-3B, the taxpayer has to pay the extra amount tax along with interest on the difference amount.
To show the monthly liability of GST for the taxpayers GSTR 3 is filed. This return is to be filed by all the registered entities. This return is filed on a monthly basis in general except the business entities whose turnover is upto 1.5 crores. They can file this return on a quarterly basis. The major use of this return is it shows the complete GST liability of the taxpayers who are registered for GST.
As GSTR 3 shows the complete GST liability of a taxpayer this return is very important for the registered individuals.
NRIs who intent to transact in local supplies and also to avail ITC, then they are required to file GSTR-3 like every other registered payer.
To make your GSTR 3 a valid return, it should be filed only after paying the entire tax liability. Otherwise it will not be a valid return. If you file an invalid return and later wants to pay the remaining amount of tax liability, you have to file Part B of GSTR 3 again.