When it comes types of GST returns filing, GSTR-3B is another returns statement that all eligible businesses must file under the GST regime. GSTR-3B is a monthly or quarterly summary statement that captures details on total sales and purchases, ITC claimed, refunds, and other details required to calculate tax liabilities. It’s a self-declaration and must be filed within the due-dates to avoid late fees and penalties. Businesses need to file it even if there has been no business activity during the given time period to ensure consistency in tax records and compliance.

We take a look at what is GSTR-3B, its meaning, eligibility and due dates, how to file GSTR-3b, rules and format, what’s the difference between GSTR-1 and GSTR-3B, and more.

What is GSTR-3B?

Let’s start with the basics – what is GSTR 3B under the Goods and Services Tax regime?

GSTR 3B is a monthly or quarterly (those opting for QRMP scheme) return form for all GST registered businesses. It provides a summary of the tax liabilities and credits for every tax period. The GSTR-3B form includes sections for output GST (on sales) and input credit (on purchases).

All eligible GST businesses – manufacturers, traders, and service providers – must file GSTR 3B even if there has been NIL business activity in the given month/quarter. A late fee of ₹50 per day is applicable if returns are not filed by the GSTR 3B due date (usually 20^th of the subsequent month).

It’s important not just for staying compliant but also for maintaining the financial health of the business, by enabling them to track their tax obligations and support transparent business practices.

Who is eligible for GSTR 3B?

The next question is – who should file GSTR 3B?

Eligibility for GSTR-3B is broad and inclusive. All taxpayers, including manufacturers, service providers and traders (wholesale and retain), under the GST regime must file GSTR-3B.

• All GST registrants
• Regular taxpayers
• Casual taxpayers

Also read: GST registration procedure – Steps to online registration on GST portal

Who is not required to file GSTR-3B?

There are some taxpayers/businesses that do not have to file GSTR-3b. These include:

• Those under the Composition Scheme of GST (i.e., they file GSTR-4 quarterly)
• Input Service Distributor
• Suppliers of OIDAR services
• Non resident taxable person

Is GSTR 3B compulsory for NIL return?

Yes. GSTR-3B must be filed even if there has been NIL business activity in the given month or quarter.

Also read: GST exemption – List of items exempted under GST framework

Must read: How to File NIL GST Return Online: Step-by-Step Guide (2024)

What is the due date for GSTR 3B filing?

GSTR-3B can be filed on a monthly or quarterly basis (for those that have opted for QRMP scheme). The due dates for filing GST 3B returns are:

• Monthly basis: Within the 20^th of the next month (i.e., GSTR 3B for April 2024, must be filed within the 20^th of May 2024) (Note: These include businesses with aggregate annual turnover over ₹5 crores)
• Quarterly basis: Within the 22^nd or 24^th of the next month succeeding the quarter based on the principal state or Union Territory of business

Is GSTR-3B monthly or quarterly?

As explained in the previous section, GSTR-3B can be filed on a monthly or quarterly basis.

For businesses with above ₹5 crores in annual turnover in the previous financial year, GSTR-3B must be filed on a monthly basis. The due date for filing returns is the 20^th of the next month.

For businesses that have opted for the QRMP scheme, (i.e., annual turnover is less than ₹5 crores in the previous financial year), GSTR 3B must be filed on a quarterly basis. The due date for filing returns is 22^nd or 24^th of the month following the quarter (based on the state/UT of business).

Also read: Types of GST in India – Know the difference between IGST, CGST and SGST/UTGST

How much is the late fee for GSTR 3B?

If you miss the due date for filing GSTR 3B returns, you will incur late fees penalty and even interest (if applicable).

• GSTR-3B late fee for normal taxpayers: ₹50 per day
• GSTR 3B late fees for NIL returns: ₹20 per day

There’s however a maximum late fee for GSTR 3B that is calculated based on the annual turnover.

• Maximum late fees for NIL return filing: ₹500 per return
• Maximum late fees for annual turnover of less than ₹1.5 crores: ₹2,000 per return (i.e., ₹1,000 each split between CGST and SGST/UTGST)
• Maximum late fees for annual turnover between ₹1.5 crores to ₹5 crores: ₹5,000 per return (i.e., ₹2,500 each split between CGST and SGST/UTGST)
• Maximum late fees for annual turnover above ₹5 crores: ₹10,000 per return (i.e., ₹5,000 each split between CGST and SGST/UTGST)

What are the rules for filing Gstr 3B?

When it comes to what is GSTR-3B and its filing, there are some basic rules that have to be followed:

• For every GSTIN, a separate GSTR-3B must be filed
• GSTR-3B cannot be amended once it has been filed (i.e., you can reset GSTR 3b but the status will also show as yet to be filed)
• Form GSTR-1 cannot be filed, if businesses have not filed GSTR-3B in the previous month/quarter
• GSTR-3B form must be filed for every tax period by a normal taxpayer
• Even if there are NIL returns, GST 3B returns form must be filed within the due date
• For those opting for QRMP scheme and filing GSTR-3B on a quarterly basis, Form GSTR-2B is available on a monthly and quarterly basis

What is the difference between GSTR 1 and 3B?

We understand by now what is GSTR-3B and why it is important for businesses to file. Along with GSTR-3B another important GST returns form that most businesses need to file is GSTR-1. While GSTR-3B is a summary statement, GSTR-1 is a sales statement.

The table below highlights the main differences between GSTR-1 and GSTR-3B to enable taxpayers to understand their role and stay compliant.

Difference between GSTR-1 and GSTR-3B

While GSTR-1 is focused on reporting sales transactions and outward supply of goods for the month/quarter, GSTR-3B summarises tax dues and ITC credits.

Also read: What are the documents required for GST registration?

How to file GSTR 3B returns?

When you file GST 3B returns, there are some specific details you will need to update. The GSTR 3B format includes details such as:

• GSTIN (remember you will have to file GSTR 3B separately for each GSTIN)
• Business’s legal name
• Details of sales and purchases including inter-state sales
• Any ITC claims, tax paid and TCS/TDS credit
• Value of goods and services under NIL GST slabs

With this understanding, let’s take a look at the key steps to filing for GST 3b returns.

Steps to filing GSTR-3B:

The GSTR 3B filing procedure is streamlined for ease and efficiency. Here are the simple steps to do it:

• Visit the official GST portal and log in to your account using your credentials: //www.gst.gov.in/
• Follow the path to be directed to the current filing period: Services > Returns > Returns Dashboard
• Select the correct returns filing period from the drop down option
• Start to prepare GSTR 3B online by selecting the right form and clicking on the prepare online option
• Fill in the relevant details in the GSTR 3B form (e.g., details of outward supplies, inward supplies liable to reverse charge, and ITC availed), save it (if you want to review or edit details) or click on the submit option
• Check the acknowledgement message and the status of the form submission (i.e., it will be reflected as Submitted)
• Pay the required taxes and offset the liability (ensure you have sufficient balance in your electronic cash ledger)
• Accept the terms of declaration and e-sign with the DSC or EVC of the authorised signatory
• Confirm the action and wait for the GSTR 3B filing submission message

Also read: GST registration certificate download – Learn how to view/download PDF

Is GSTR 3B for sale or purchase?

Before we close out discussion on what is GSTR-3B and its importance, a commonly asked question is – Is GSTR 3B for sale or purchase?

As you must have gathered by now, GSTR 3B is neither for sale nor purchase transactions. It a self-declared summary of returns – tax liabilities, ITC, refunds, and net tax payable and hence contains details on both outward and inward supplies for the specified time period (month or quarter).

*This article is for information only. For more information please visit the official GST portal or consult with a GST practitioner or CA or tax consultant for professional advice.