GSTR 3
In this artical, you will know about GSTR 3, Who should File, How to File, Due Date and Fee, GSTR 3 is not filed, Confirmation, Details required
What is GSTR 3?
GSTR is a summary of sales, purchases, sales over 3 months. This is the final form filed by the taxpayer with details including the monthly return of the business. GSTR 3 auto-generated after submission of information from GSTR 1 and GSTR 2. The person should pay the tax and file the return.
Who should file for GSTR 3?
Every registered person has to file GSTR 3 during the month. Even if there are no transactions -
Persons liable to collect TCS
Persons liable to deduct TDS
Composition Dealers
Input Service Distributors
Non-resident taxable person
Suppliers of online information and database access or retrieval services (OIDAR), who are required to pay the tax themselves as per section 14 of the IGST Act.
How to file for GSTR 3?
Taxpayers must have an active GSTIN for the period. GSTR 3 can be filed online on the GST portal. You need to go to the portal and follow the steps given below for filing GSTR 3.
Login to GST portal account
Edit and add other information
GSTR 3 return must be digitally signed by the authorized person mentioned on the GST account.
GSTR 3 Due Date and Fee
The due date of GSTR 3 is the 20th of every month. If the person delays filing, he will be liable to pay interest and late fees. Taxpayers have to pay the total amount owed by the tax which is 18% p.a. Starting the next day after the due date. Late fees of Rs. 100 per day under C-GST as well as under S-GST. The maximum late fee can be 5000 rupees.
If GSTR 3 is not filed?
If taxpayers do not file GSTR 3 returns, they cannot file GSTR 1 for the following month. Therefore, late filing of GST returns will eventually lead to heavy fines and penalties.
How to confirm the return is filed?
When the return is filed by the registered taxpayer, an ARN is generated, and SMS and email are sent on successful filing of GSTR 3. If the return is invalid, a mail and SMS are sent to confirm it. In that case, you will have to pay unpaid liability, and then the ARN will be generated confirming the same. Electronic LED will be updated after the successful filing of returns.
Details required for filing GSTR 3
GST Identification Number– If you do not have a GSTIN, you can also use the Provisional ID.
Name of the taxpayer– The legal name of the taxpayer and the trade is mentioned here.
Month and year- The relevant month and year for which GSTR 3.
Turnover- Total turnover will be divided as follows:
Taxable Turnover [other than zero rated] - General sale to both registered and unregistered buyers.
Zero-rated supply on payment of tax - Exports that are paid by paying IGST which are later reclaimed as refunds.
Zero-rated supply without payment of tax - Exports that are paid with bonds or LUTs.
Deemed exports - Goods sold to SEZ (goods do not leave the country)
Exempted - These are goods and services which do not apply to GST.
Nil Rated - These are goods/services which attract 0% GST.
Non-GST supply **** These are items like petrol, electricity which are outside the scope of GST.
Outward Supplies - All sales made to customers. This data can be generated automatically using the data you record under GSTR 1.
4.1 Inter-State supplies (Net Supply for the month)
4.1A. Taxable supplies (other than reverse charge and zero-rated supply) [Tax Rate Wise]
4.1B. Supplies attracting reverse charge-tax payable by the recipient of supply
4.1C. Zero-rated supply made with payment of I-GST
4.1D. Out of the supplies mentioned at A, the value of supplies made through an e-commerce operator attracting TCS-[Rate wise]
Inward Supplies attracting GST on reverse charge - This major includes all purchases and supplies received during the month. This information is automatically generated from the details entered under GSTR 2. It is further bifurcated as:
5A. Inward supplies on which tax is payable on a reverse charge basis
5B. Tax effect of amendments in respect of supplies attracting reverse charge
Input Tax Credit - The government will give you the tax paid on the investment taxable supply (including imports) as a credit.
Addition and reduction of amount in output tax for mismatch and other reasons - The tax liability between the mismatch in the input tax credit and the original return during the current tax period and any amendments filed for them.
7a. ITC claimed on mismatched or duplication of invoices or debit notes
7b. Tax liability on mismatched credit notes
7c. Reclaim on rectification of mismatched invoices/Debit Notes
7d. Reclaim on rectification of mismatch credit note: (Reduce)
7e. Negative tax liability from previous tax periods
7f. Tax paid in advance in earlier tax periods and adjusted with the tax on supplies made in the current tax period
7g. Input Tax credit reversal/reclaim
Total Tax Liability for the month - This is the most important part as the GST portal will calculate the total tax liability under various tax heads such as CGST, SGST, and IGST.
8A. On outward supplies
8B. On inward supplies under reverse charge
8C. On account of ITC reversal or reclaim
8D. On account of mismatch/ rectification /other reasons
TDS and TCS credit received – Tax deduction at source (TDS) and tax collected at source (TCS) are paid by the taxpayer. The amount of TDS or / TCS will be deducted from the total liability to arrive at the total net amount of tax payable
Interest liability - Your total interest on the government due to various reasons (due to mismatch in tax liability, ITC claim, reversal of ITC or delay in filing tax payment or return).
Output liability on mismatch
ITC claimed on mismatch invoice
On account of other ITC reversal
Undue excess claims or excess reduction [refer sec 50(3)]
The credit of interest on rectification of mismatch
Interest liability carry forward
Delay in payment of tax
Total interest liability
Late Fee - Delay charges in the form of penalty apply along with interest in case of delay in return filing. Late fee Rs. 100 per day. The maximum amount in the form of a fine is Rs. 5,000
Tax payable and paid - Here you have to document the tax which you have to pay under IGST, CGST, SGST, or UTGST and Cess. You can get this using your GSTR-1 and GSTR-2 data or from tax reports on your accounting software. There are two ways you can pay tax under GST.
Interest, Late Fee, and any other amount (other than tax) payable and paid - The tax authorities imposed these fines on taxpayers who fail to comply with the GST law.
Refunds Claimed from Cash Ledger - If the tax paid exceeds the actual amount which is to be paid by the person, it will be refunded.
Debit entries in electronic cash/credit ledger for tax/interest payment - Once you pay tax and submit your return, it will be auto-filled.
Disclaimer: This article is intended for general consumption only. The information in the article was correct at the time of publication, but it is subject to change due to changes in government rules and regulations. The contents of the blog may not be copied unless prior permission is obtained.
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