From the day when GST was rolled out, the internet is abound with all types of information. Be it GST registration, payment or filing of returns, discussions are widespread everywhere. With a new tax regime however, comes a new set of doubts and questions. GST return filing is part and parcel of the new regime. Notwithstanding that the tax regime under GST is supposed to be simpler now, there is a variety of returns to be filed for different purposes. One such type of return is GSTR 3B.
Talking about GSTR 3B Return, a lot of questions pop up every day. Is it a new type of return? Who needs to file it? Does it replace the other GST Returns. Here, I have tried to answer all the above questions and some more. Read on to know everything you want to know about the GSTR 3B.
What is GSTR 3B? GSTR 3B is a temporary type of return which needs to be filed for the months of July 2017 till March 2018 (after taking into account the recent amendments) Under GST, every registered dealer needs to file the three returns in a month (a)Return stating the Outward supplies in GSTR 1 ; (b) Return comprising details of Inward supplies in GSTR 2; and (c) GSTR 3 which is the final monthly return and calculates other details on the basis of the above two returns. So, there is a total of 36 returns to be filed each year. In addition to this, there is one annual return (GSTR-1) as well. This brings the total to 37 returns in a year.
So if GSTR-1 was kept for Outward supplies and GSTR 2 for inward supplies and GSTR 3 was kept as the final consolidated return comprising details from both GSTR-1 and GSTR 2 the why GSTR 3B then?
Initially there was a whole lot of confusion about the new tax paying system and it thus extend to filing of returns as well. Tax payers felt intimidated by the sheer volume of returns to be filed in a year. And also the government was not totally ready with GSTN to enable the taxpayers to file all returns from the day 1 of GST launch as the design module for GSTR1, 2 and GSTR 3 return was not ready to be utilized.
Till today we only have an updated GSTR-1 and GSTR 3B module working on the GSTN and the taxpayers are only filing these returns on the GST Portal. So the ambiguity around introduction of GSTR3B return which contains the consolidated details of taxes paid or credit claimed for a tax period. This return only contains the details of summed up taxes on outward supplies and taxes on inward supplies, including reverse charge supplies. The Finer Point to be noted here is that this return is a consolidated return and it does not contains invoice level details such as required in GSTR 1 and GSTR2. So it was clear that government wanted to reduce the burden of tax payers and wanted them to understand the mechanism of GSTR-1, GSTR 2 and GSTR-3 returns and to tute them with proper understanding of these returns and its importance they decided to roll GSTR3B into the return filing arena which bought time both for taxpayers and the government as well. For taxpayers it acted as a relief measure as they were struggling to find their feet in understanding the new taxation policy and for government it gave a relief as it had to Upgrade the technical division in GSTN to create the mechanism required for filing GSTR 1 and GSTR 2 return to enable to complete the taxpayer's return in GSTR-3.
Who needs to file GSTR 3B? Every registered taxable person who is liable to file GSTR 1, 2, and 3 is required to file GSTR 3B return either directly or through GST Suvidha providers.
Is it a new type of return then? Essentially, yes. But it differs from other returns as it is not periodic in nature. It is only a transitional provision which helps the taxpayer get a hang of the return filing system under GST. This return is only for a period between July to March 2018 that’s until the beginning of next financial year. And we still don’t know whether we will be filing GSTR-3B returns for the next fiscal or not. So we can call this return as a provisional return or a return in lieu of regular returns GSTR-1,2 and GSTR 3. This return is master return which keeps track of tax collection for the government and for taxpayers it keeps track of taxes paid and credits claimed by them on their supplies. So when GSTR 2 and GSTR-3 return are made available GSTR 3B would act as a tax reconciler and enable to complete our return while filing final return in GSTR 3.
So is it right to say that GSTR 3B return replaces all the other GST returns? Not really. It is only temporary in nature as businesses need to file it till the month of March 2018. After this, they will need to file regular returns in forms GSTR 1, 2, and 3. So, it does not replace other returns. It only postpones the need to file them for a few months. But, it does provide a simpler alternative to them to ease out the confusion surrounding the initial introductory phase.
Filing GSTR 3B Return : Below is a step-by-step rundown on the details you need to provide while filing GSTR3B return.
GSTIN details with month and year : This will be auto-populated. One need to just fill the month and the year for which GSTR 3B return is to be filed.
Outward supplies and supplies which attract GST under Reverse Charge mechanism : Here one needs to provide details of taxes paid on Outward taxable supplies (other than Zero rated, nil rated and exempt supplies) and supplies which are nil rated, zero rated and exempted supplies separately under each rows. It also contains details of inward supplies that are liable to reverse charge. [Note : Taxes have to be entered in respective columns for IGST tax liability under IGST Tax rate column, for CGST under CGST tax rate column and similarly for SGST, IGST and cess of any should also to be mentioned in separate column allotted for the purpose in the 3B Return.
Inter-state Supply to certain persons : This covers supplies to the following persons : (a) Unregistered person; (b) Composition taxable person; (c) UIN holders. Here the taxpayer has to additionally quote in his return the place of supply in every such transaction entered with these taxpayers as mentioned above.
Eligible Input Tax Credit : Here, you need to enter all details relating to Input Tax Credit. This includes available, reversed, net, and ineligible ITC.
Inward supplies (Non Taxable) : Here you need to provide details of supplies which are not taxable for one reason or the other. They may be exempt, taxable at nil rate, or supplies from Composition tax dealers or they may not fall under GST altogether.
Payment of Tax : This will include details of net tax payable under IGST, CGST, SGST or IGST and for cess. In this table the taxes are settled by paying through the input tax credits and balance if any payable gets transferred to E cash liability which is then settled of by paying taxes and updating the cash ledger.
TDS/TCS Credit : Here, you will need to fill the details of tax deducted as well as collected at source under IGST, CGST, and SGST. These provison are still locked in the return and we would not be able fill this row in GSTR3B return.
What is the process for filing GSTR 3B? It is similar to filing regular GST returns. You can file GSTR 3B through the online portal of the government of India. The entire confusion surrounding GST returns seems to stem from the way these returns are named. But, there is no need for it. As the revenue secretary says, these different returns are parts of the same return. So there are no multiple returns, but multiple parts of the same return. GSTR 3B can prove to be a much-needed relief to the perplexed tax payer as it simplifies things to a great extent, even if temporarily.
The recent change in GST 3B returns design made it much more easier for taxpayers to file the return as the taxpayer is asked series of questions against which he is to answer yes or no. Like whether he has Do you want to file nil return if Yes then no other tables which form part of GSTR3B appears on the return filing screen and only the Declaration statement needs to be signed for such return either with the help of digital signature certificate or by verifying with the help of EVC option. Similarly if you have not made any inward supplies for a given tax period you can choose no against such question and only other tables like Outward supplies tax payments will appears on the screen. So a taxpayer need not confuse with all the contents of the table and choose only those tables or part of the return which he wants or liable to fill.
Speaking of simplicity in design for GST Return filing, one can relate back to Tally.ERP 9 software GST 3B Return Filing module which is part of its software package, the design is akin to GST portals GSTR3B Return module with an added feature to file the return directly from the software itself by converting the GSTR 3B data into JSON supported file format and uploading on the GST portal and all this with comfort and easiness. We could also view the gstr3b data in Tally.ERP 9 gst software in the same format which GST Portal displays on the taxpayers screen and all this in the same accounting software which the Tally.ERP 9 provides to you. Hence the return filing is lot easier with Tally.ERP 9’s Return filing module which saves us more time and also gives us accuracy and surety of correctness in filing the returns.