GST Return Filing Form GSTR-3B Explained

SahiGST helps you understand Form GSTR-3B. Please find below all details and instructions about GSTR-3B.

Description:

As per Rule 61(5), Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, specify that return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

(Update: As per a recent notification by CBEC, GSTR-3 is also to be filed for the months of July & August.)

As per the Press Note issued by the CBEC, the due dates for filing of returns in the form GSTR 1 and GSTR 2 for the months of July 2017 and August 2017 have been extended till September 2017 and a return in the form GSTR 3B will be filed for the said two months containing a summary of inward and outward supplies.

  • Form GSTR 3B Due Date For July 2017 is 20th August 2017
  • Form GSTR 3B Due Date for August 2017 is 20th September 2017

For more details, kindly visit:

http://www.cbec.gov.in/resources//htdocs-cbec/press-release/press-note-on-return-filing.pdf

The layout of the form can be found on the link below:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-rules-01july2017%20.pdf (Page 209)


Also Read: Preparing & Filing Form GSTR-3B For July & August 2017


Understanding the form:

  • Year: The financial year for which the return is being filed. In this case 2017.

  • Month: The month to which it pertains.

  • GSTN: Enter your GSTN

  • Legal name of the registered person: The registered entity’s name would automatically be displayed once the GSTN is entered.

3.1 Details of outward supplies and inward supplies liable to reverse charge.

Explanation: Outward supplies are goods sold/supplied or services provided within India (either within the state or outside the state).

Understanding rows (Table 3.1):

  • Outward taxable supplies (other than zero rated, nil rated and exempted): Here details of taxable value and tax payable on services provided or goods sold/supplied other than zero rated, nil rated and exempted goods or services need to be provided.

  • Outward taxable supplies (zero rated): Here details of taxable value on services provided or goods sold/supplied, where the rate of tax notified is zero is to be provided. These include exports outside India and goods sold/supplied to SEZ.

  • Other outward supplies (Nil rated, exempted): Here details of tax payable on services provided or goods sold/supplied, where the rate of tax notified is NIL or if they are fully exempt is to be provided.

  • Inward supplies (liable to reverse charge): If you have purchased any goods or received any services which are liable to reverse charge, i.e. where the onus of payment of tax falls on the receiver, details of taxable value and tax payable need to be provided.

  • Non GST outward supplies: Here details of taxable value on services provided or goods sold/supplied which do not fall under the ambit of GST need to be provided.

FYI: On zero rated supplies, input tax credit can be claimed whereas on NIL rated or exempt goods, input tax credit will not be available.

Understanding columns (Table 3.1):

  • Total taxable value : For details, kindly visit the following link

    http://www.cbec.gov.in/resources//htdocs-cbec/gst/eflier-valuation-gst27062017.pdf

  • Integrated tax: In case goods are sold/supplied or services are provided outside the state, a single integrated tax rate will be charged. Total value of such integrated tax payable will be provided.

  • Central tax: In case goods are sold/supplied or services are provided within the state, tax will be equally divided between central and state / union territory. Total central tax payable will be provided here.

  • State / UT tax: In case goods are sold/supplied or services are provided within the state, tax will be equally divided between central and state / union territory. Total state / union territorial tax payable will be provided here.

  • Cess: Total cess payable, if any, will be provided.

3.2 Of the supplies shown in 3.1 (a) above, details of inter - State supplies made to unregistered persons, composition taxable persons and UIN holders:

All details in this table pertain to inter-state sales.

Understanding rows (Table 3.2):

  • Supplies made to Unregistered Persons: Unregistered persons are the ones who do not have a GST registration.

  • Supplies made to Composition Taxable Persons: Composition Taxable Persons are the ones who are registered under the composition scheme.

For the purpose of explanation, persons falling under the composition scheme are the ones whose turnover is less than Rs. 75 lakhs and who do not fall under the following category:

  • a service provider ( Except restaurant )

  • making non GST supplies

  • making inter-state outward supplies

  • making supplies through ecommerce operators who are liable to collect tax at source

  • manufacturer of Notified goods

  • Supplies made to UIN holders: The following are granted a UIN :-

  • Any specialized agency of the United Nations Organization or

  • Any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947),

  • Consulate or

  • Embassy of foreign countries;

  • Any other person or classes of person notified by the Commissioner who shall be liable to obtain Unique Identification Number

Understanding columns (Table 3.2):

  • Place of Supply (State/UT): Here details of place of supply, i.e. the name of the state or union territory is to be mentioned.

  • Total Taxable value: Value of taxable services or goods sold/supplied calculated as mentioned under 3.1, Column 2 above for the above category need to be provided.

  • Amount of Integrated Tax: Value of integrated tax need to be provided.

4. Eligible ITC

Understanding rows (Table 4):

(A) ITC Available (whether in full or part) :

  • Import of goods: Here IGST paid on goods imported will be available as an input tax credit.

  • Import of services: Here IGST paid on import of services will be available as an input tax credit.

  • Inward supplies liable to reverse charge (other than 1 & 2 above): If you have purchased any goods or received any services which are liable to reverse charge, i.e. where the onus of payment of tax falls on the receiver, tax paid will be mentioned here.

  • Inward supplies from ISD: ISD stands for Input Service Distributor. In case a business has multiple units and is supplying goods or services from all such units, the input service distributor will allot the relevant input tax credit to each such unit. The details of these need to be mentioned.

  • All other ITC: All ITC on domestic inward supplies and any other credit as may be applicable and not mentioned above.

(B) ITC reversed:

As per rules 42 & 43 of CGST Rules:

  • Rule 42 pertains to the manner of determination of input tax credit in respect of inputs or input services and reversal thereof.
  • Rule 43 pertains to the manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases.

Inputs, capital goods and input services which are used for making exempt, NIL rated supplies will have to be reversed.

The excerpts to both the rules can be found by clicking the link below:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-rules-01july2017%20.pdf (Page 24 and 26)

  • Others: Any other credit that needs to be reversed.

© Net ITC Available (A) - (B) : This is the difference between A and B calculated above.

(D) Ineligible ITC:

  • As per section 17(5) : There is a list of certain specific goods and services on which input tax credit will not be available as per section 17(5). For information, kindly visit the following link:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-act.pdf (Page 20)

  • Others: Any other credit that may be ineligible.

Understanding columns (Table 4):

  • Integrated tax: Same as above.

  • Central tax: Same as above.

  • State / UT tax: Same as above.

  • Cess: Same as above.

5. Values of exempt, nil- rated and non- GST inward supplies:


This table specifically pertains to exempt, nil-rated and non GST inward supplies i.e. goods and services that don’t fall under the ambit of GST.

Understanding rows (Table 5):

  • From a supplier under composition scheme, Exempt and Nil rated supply: Value of goods purchased from a supplier to whom the composition scheme is applicable will be mentioned here. Further, purchase of goods or receipt of services which are exempt from tax or where the tax payable is NIL, will also be mentioned here.

A few examples of exempt goods are:
a) Sugar and sugar confectionery
b) Judicial, Nonjudicial stamp papers, Court fee stamps when sold by the Government Treasuries or Vendors authorized by the Government

  • Non GST supply: Value of goods purchased or services received which do not fall under the ambit of GST will be provided here.

A few examples of goods that do not fall under the ambit of GST are:
a) Alcohol for human consumption
b) Petroleum Products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel.

Understanding columns (Table 5):

  • Inter - State supplies: The total value of goods purchased or services received, which fall in the above category, within India from outside the state need to be provided.

  • Intra - State supplies: The total value of goods purchased or services received, which fall in the above category within India, within the state need to be provided.

6.1 Payment of tax: Here the details of net tax payable after deducting the input tax credit shall be provided.

Once the outward tax liability has been calculated, the next tax payable will be calculated as under:

Outward tax payable
Less: Input tax credit
Balance remaining will be paid in cash.

Input tax credit will be set off as under:

Input tax credit of IGST can be set off against the outward liability of IGST, CGST, SGST.
Input tax credit of CGST can be set off against the outward tax liability of CGST and IGST.
Input tax credit of SGST can be set off against the outward tax liability of the SGST and IGST.
Input tax credit of UTGST can be set off against the outward tax liability of the UTGST and IGST.

Understanding rows (Table 6.1):

The explanation towards Integrated Tax, Central Tax, State/UT Tax, Cess will be the same as mentioned above.

Understanding columns (Table 6.1):

  • Tax payable: Here the total tax payable shall be mentioned.

  • Integrated Tax: The break up of the integrated tax paid out of the total tax payable through ITC shall be mentioned.

  • Central Tax: The break up of the central tax paid out of the total tax payable through ITC shall be mentioned.

  • State/UT Tax : The break up of the state / UT tax paid out of the total tax payable through ITC shall be mentioned.

  • Cess: Cess paid through ITC, if any, shall be mentioned.

  • Tax paid TDS/ TCS: The following people are liable to deduct tax :

(a) a department or establishment of the Central or State Government, or
(b) local authority, or
© governmental agencies, or
(d) such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

Liability to collect tax at source is only applicable to E-Commerce operators. Requirement for which has been currently relaxed via a notification.

  • Tax/ cess paid in cash: The amount of total tax or cess paid in cash.

  • Interest: The amount of interest payable if any.

  • Late fee : The amount of late fee if any. No late fee will be charged for these two months.

6.2 TDS/TCS Credit

Details of TDS/TCS credit available on applicable supplies during the return period. The credit amounts can be divided as per transaction type, Integrated Tax for inter state supplies & Central Tax + State/UT Tax for intra-state supplies.

For TDS, transactions are yet to be notified.

You can also watch a video overview of Form-3B here:


Also Read: Preparing & Filing Form GSTR-3B For July & August 2017


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