GSTR 3: Return Filing, Format, Eligibility and Rules

GSTR 3 was a return that reported sales, purchases, ITC, and tax liability for a given tax period under the 2017 GST law. However, this return, along with GSTR-2, is no longer in force. All the regular taxpayers are filing GSTR-1 and GSTR-3B, after referring to GSTR-2B. Continue reading to explore GSTR 3 due date, GSTR 3 meaning and GSTR 3 applicability at present.

Key takeaways

• GSTR-3 was a monthly summary return containing sales, purchases, ITC and tax liability.
• GSTR-3B replaced GSTR-3 in due course by way of notification by the CBIC. So, GSTR-3 filing is put on hold.
• Regular taxpayers were required to file GSTR-3 in 2017 when GST was introduced.
• There was a system of reconciliation between GSTR-3B and GSTR-3 when both returns were in force.

What is GSTR 3?

GSTR-3 was a monthly return with the summarised details of sales, purchases, sales during the month along with the amount of GST liability. This return was to be auto-generated pulling information from GSTR-1 and GSTR-2. However, as of current date, GSTR 3 applicability is put on hold indefinitely. GSTR-3B has taken over as the summary return for regular taxpayers. 

Why is GSTR-3 important?

GSTR-3 was to show the amount of GST liability for the month. The taxpayer had to pay the tax and file the return.

What happens if GSTR-3 is not filed?

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

What happens if GSTR-3 is filed late?

If you delayed filing, you will be liable to pay interest and a late fee.Interest is 18% per annum. It has to be calculated by the tax payer on the amount of outstanding tax to be paid. 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.

Who should file GSTR-3?

Every registered person is required to file GSTR-3 irrespective of whether there are any transactions during the month or not. However, these registered persons do not have to file GSTR-3–

• 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)

How to revise GSTR-3?

GSTR-3 once filed cannot be revised. Any mistake made in the return can be revised in the next month’s GSTR-1 and GSTR-2 returns. Direct revision in GSTR-3 is not possible as GSTR-3 is auto-generated without provision for editing.

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

GSTR 3B is a simple return form introduced by the CBIC in August 2017, applicable at present. GSTR-3 had to be filed for only for July & August 2017. Earlier years, upon filing the GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system would have updated 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.

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

Details to be provided in GSTR-3

There are 15 headings in GSTR-3 format prescribed by the government.  We have explained each heading along with the details required to be reported under GSTR-3.

1. Provide GSTIN 

2. Name of the Taxpayer

Part-A (mostly auto-populated)

3. Turnover

4. Outward supplies-

4.1 Inter-State supplies (Net Supply for the month)

4.2 Intra-State supplies (Net supply for the month)

4.3 Tax effect of amendments made in respect of outward supplies

5. Supplies chargeable under reverse charge

5A. Inward supplies on which tax is payable on reverse charge basis

5B. Tax effect of amendments in respect of supplies attracting reverse charge

6. Input tax credit

7. Addition and reduction of amount in output tax for mismatch and other reasons

8. Total tax liability-

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

9. Credit of TDS and TCS

10. Interest liability (Interest as on ..)

11. Late Fee

Part B

12. Tax payable and paid

13. Interest, Late Fee and any other amount (other than tax) payable and paid

14. Refund claimed from Electronic cash ledger

15. Debit entries in electronic cash/Credit ledger for tax/interest payment [to be populated after payment of tax and submissions of return]

To know more about the different types of returns, deadlines and the frequency of filing, read our article on GST Returns.