Here's a simple answer to your question on what is GSTR 1. The GSTR (Goods and Service Tax Return) 1 form is a return form for typical taxpayers who must submit information about their outgoing supplies on the eleventh of every month if their yearly revenue exceeds 1.5 crores.
Taxpayers who fall below the threshold of 1.5 crores must submit quarterly returns. It's important to note that every registered taxpayer must be aware of what is GSTR-1 and submit complete information about their sales or outward supplies in the GSTR-1 form.
If you fall under the GSTR 1 bracket, then you must learn all the aspects of this tax vertical. This article will look at what is GSTR 1, the GSTR-1 filing process, rules and regulations, the documents necessary to file your GSTR 1, and when you should fill out this form. Let's begin.
Who Should File GSTR-3B Returns?
GSTR 3B means a form that helps to summarize GST liabilities for a particular tax period using a simplified approach. Every business must undergo GSTR 3B filing process for their GSTIN number. If someone has more than one GSTIN to their name, it is essential to file a separate return for each GSTIN. Tax liabilities for GSTR-3B filing must be paid by the GST 3B return due date.
If you have a valid GSTIN number, you must still undergo GSTR 3B filing regardless of not owing any tax liability. It will be filed in the 'nil' category.
The following individuals are not required to file the form GSTR 3B:
- Composition scheme taxpayers
- Input service distributors
- Online Information Database Access and Retrieval (OIDAR) service provider that is not a resident of the country
- Non-resident taxpayers
- GSTR 3B return must be filed even by small taxpayers with an annual turnover of less than Rs. 5 crores. A Quarterly Returns with Monthly Payment (QRMP) scheme allows you to pay quarterly rather than monthly.
What Is the GSTR 3B Format?
GSTR 3B new format is simple and oriented toward the taxpayers so it becomes easy for them to file the taxes appropriately. The following sections make up the form GSTR 3B and GSTR 3B summary in general.
Section 1: The questionnaire will ask about your business activities and the taxes you must pay for the current tax year. Section 2: The status of your GST return will be displayed after you enter the GST information. Section 3.1: Following that, you will see a section containing information about the reverse charge tax on inward and outward supplies. Section 3.2: This section includes information on interstate supplies made to holders of Unique Identification Numbers (UINs), unregistered individuals, and members of composition schemes. Section 4: Here, you will find input tax credits (ITC) information. Section 5.1: In this section, you will find details about GST-exempt supplies (if any). Section 5.2: Here, you will find information about the late fees and interest. Section 6.1: As a final step, you will see the page containing all the information you need regarding paying your GST liabilities.
Now that you know what is GSTR 3B? and its format, let's proceed to understand how to file it online.
How to File GSTR-3B Online
Form GSTR 3B can be filed online or offline by taxpayers. The duly filed GSTR 3B return can be uploaded by downloading the online form and then uploading it.
It is effortless to file this GSTR on the GST portal by following these steps -
Step 1 - Navigate to GST's official website. Step 2 - In step two, you need to choose 'Services' from the menu option. Step 3 - Choose the Returns option. Step 4 - Here, you need to navigate to the "Returns Dashboard" option. Step 5 - Select "Financial year" from the drop-down menu on the "File Returns" page. Step 6 - Click the 'Search' button after choosing the relevant 'Return Filing Period'. Step 7 - Click the monthly returns option for form GSTR 3B. Step 8 - Complete the online form by clicking 'Prepare Online'. Step 9 - Here, you can click on 'NEXT' to continue. The first question must be answered 'Yes' if a 'NIL' return is to be filed. The remaining questions must be answered similarly. Step 10 - Fill out the displayed tiles with the applicable values. Fees for late payments and interest should be added if applicable.
The individual can select either the 'ADD' or the 'Delete' option in each tile to make the necessary modifications.
Step 11 - Once again, click the 'Confirm' button. Step 12 - Press "Save GSTR 3B". Step 13 - Once you have verified and confirmed all the details, click the 'SUBMIT' button. On the top right corner of the page, one can see the status of this GSTR. Step 14 - Click on the preview button to view the draft GSTR-3B return. The 'Payment of Tax' tile will be displayed upon successful return submission. Taxpayers can check their credit and cash balances by clicking on the 'Check Balance' button. Step 15 - Choose 'Authorized Signatory' from the drop-down list. Step 16 - Select the option 'File GSTR-3B WITH DSC/File GSTR-3B WITH EVC'. Step 17 - In this last step, you need to simply click on the 'Proceed' button.
If you follow these steps correctly, you will be notified on the screen that the form has been successfully submitted. Once you have clicked 'OK', proceed to the next step. The status will then be changed to 'Filed'.
Those interested in viewing details of their return can click the 'View GSTR-3B' button.
How to View the GSTR 3B Filing Status
Just as the answer to what is GSTR 3B? is simple, here are some simple steps that will help you view the status of your GSTR 3B filing:
Step 1: Use your user ID and password to access the GST portal. Step 2: Click on 'Returns Dashboard' on the main homepage. Step 3: For the next step, select the appropriate financial year and filing period, and then click on 'Search' to start the search. Step 4: Once you have completed this process, you will be able to view all of the GST returns you have filed for that month and their status as far as filing goes.
What Are the Details Featured in GSTR 3B?
There are six tables in this form, and the taxpayer must fill out specific information for each table. Several details are provided in form GSTR 3B that are detailed in this table -
| Serial Number | Tables | Contained Details |
|---|---|---|
| a) | Table 1 | The reverse charge applies to both inbound and outbound supplies. |
| b) | Table 2 | Unregistered individuals, holders of UIN cards, and dealers in composition who provide interstate supplies to unregistered individuals. |
| c) | Table 3 | ITC or Input Tax Credit |
| d) | Table 4 | Details of inward supplies that are GST-free, exempt, and nil-rated. |
| e) | Table 5 | Making a tax payment |
| f) | Table 6 | Credits from Tax Collection at Source (TCS) or Tax Deducted at Source (TDS) |
GSTR-3B Late Fees and Penalty
The following late fees apply if the form GSTR 3B is not submitted by the due date:
a. The penalty for late payments is Rs. 20 per day if you are not liable to pay the tax that month. b. The applicable late fee for late payments would be Rs. 50 per day of delay if you are liable to pay tax for the month concerned. c. Unpaid taxes are subject to a penalty interest rate of 18% per annum if unpaid.
Recent Changes in GSTR 3B
During the 26th GST council meeting by the Central Board of Indirect Taxes & Customs (CBIC), several changes were introduced. It is the taxpayer's responsibility to ensure that the new changes are adhered to. You can find details about the changes in the following points:
a. There has been a newly introduced table - Table 3.1.1. Taxpayers must disclose the goods and services supplied by e-commerce operators (ECOs).
b. It is also worth mentioning that Table 4 of GSTR 3B has also been modified a bit to make some changes to Part B and Part D. The new changes have been made such that Part B refers to ITC reversal while Part D refers to the reporting of ITCs. c. Now, taxpayers can auto-generate their Challans in a few clicks instead of manually entering their input tax credit utilisations. d. While filing their returns, taxpayers can also download a draft of their returns. e. Before submitting your return, you can also view the details of your return in one tab before submitting it.
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FAQs on GSTR 3B
1. What is the difference between GSTR-1 and 3B?
GSTR-1 returns do not require any tax to be paid. However, GSTR-3B can only be filed after tax liability has been paid. If the company fails to file its return on time, it must pay the penalty.
2. Why is GSTR 3B important?
An eligible GST dealer must undergo GSTR 3B filing along with his GSTR 1 and GSTR 2 forms monthly. GSTR 3B is important because it helps businesses summarize their returns on a monthly basis. It also enables them to stay fully tax compliant and filing GSTR 1 ensures they avoid any potential penalties.
3. Is GSTR 3B monthly or quarterly?
It is required to file Form GSTR-1 and Form GSTR-3B at quarterly intervals if you choose QRMP. Despite this, a challan must be used to make monthly payments for tax dues.
4. What is the turnover limit for GSTR 3B?
A business with an annual turnover of more than Rs. 5 crores must undergo GSTR 3B filing monthly. In the case of turnover under Rs. 5 crores, you can opt for the QRMP scheme or file it monthly.
