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GSTR3 Return Filing, Format, Eligibility & Rule

Introduction

Like every successive development of tax policies, the GST process also consists of an accumulated process that combines every detail thus collected into a better-defined data management. This initiation was coined as GSTR3.

  1. What is it?

GSTR-3 is an auto-generated process pulling information from GSTR-1 and GSTR-2. It is simply a combination of sales, purchases and the sales proceeds of the particular month for which the GST is liable.

  1. Why is it vital?

GSTR-3 resulting amount is the tax liability of an individual for the taxable period (Usually a Month) under the head of GST. It is the Gross amount based on the GSTR1 and GSTR2, on sales and purchases records respectively, processed and categorized for calculating the tax amount.

  1. What’s the due date?

The Due Date for Filing GSTR-3 is the 20th of every successive month. It is easier to remember by counting 5 days between GSTR-2 & GSTR-3 filing, so as to correct any errors and discrepancies.

For businesses with turnover less than 1.5 crores, quarterly returns are applicable whose due dates will be announced later.

  1. If it is not filed?

If GSTR-3 return is not filed, then the GSTR-1 of the next month cannot be filed.  Hence, late filing of GST returns will have a cascading effect leading to heavy fines and penalty.

  1. In case of failing to meet the filing deadline?

If you delay in filing, you will be liable to pay interest and a late fee.

Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of outstanding tax to be paid. The time period will be from the next day of filing (16th of the month) to the date of payment.

Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. Maximum is Rs. 5,000. There is no late fee on IGST.

  1. Who should file GSTR-3?

Every registered person under the GST Act, and all those who fall under the category of GSTR1 and GSTR2 are required to file GSTR-3 irrespective of whether there are any transactions during the month or not. However, there are exceptions for the following:

  • Input Service Distributors
  • Composition Dealers
  • Non-resident taxable person
  • Persons liable to collect TCS
  • Persons liable to deduct TDS
  • Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)
  1. Are there ways to revise GSTR-3?

Such revision in GSTR-3 is not possible as it is auto-calculated without provision for editing. Therefore, GSTR-3 once filed cannot be revised. Any errors in the return can be revised and rectified in the next month’s GSTR-1 and GSTR-2 returns to reflect the changes.

  1. How will GSTR-3 and GSTR-3B be reconciled?

GSTR-3 must be filed only after paying the entire tax liability otherwise it will not be treated as a valid return.

If a taxpayer has filed an invalid return and later on he wants to pay the remaining liability, then he has to file the Part B of GSTR-3 again.

GSTR 3B is a simple return form introduced by the CBEC for the month of July and August 2017. GSTR-3 will also have to be filed for July & August 2017.

On filing the GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system will update the (difference) between GSTR 3B and GSTR 3 automatically. In case, actual liabilities in GSTR-3 are higher than those declared and paid with GSTR-3B, you will have to pay the extra amount tax along with interest on the extra amount.

Find Your GSTR3 Form here:GSTR-3