All you need to know about Form GSTR-3

Last Update Date : August 20, 2018

Goods and Services Tax widely known as GST is a revolutionary step taken by the Government of India and Yes! It comes with a high degree of complexity but also a crow is vital to the ecosystem as a peacock is. In short, all the provisions and documents in GST are much needed for tax filing. Here, let’s discuss about GSTR-3, which explains details of monthly sales and purchases along with the tax liability.

What is Form GSTR-3?

GSTR-3 is a return to be filed on monthly basis (compounding and ISD taxpayers are exceptions). GSTR-3 is more like a pooled version of GSTR-1 and GSTR-2. The form captures the information of outward and inward supply information at aggregate level which will be auto-populated through GSTR-1, GSTR-1A and GSTR-2. It will comprise of the entire turnover related details, including, local sales turnover, export sales turnover, exempted local sales turnover, turnover except GST and taxable turnover. A taxpayer just has to validate this prefilled information and make modifications if required. GSTR-3 will show the Monthly liability of GST for the taxpayer, and the taxpayer files the return and pay the amount.

Who can file Form GSTR-3?

It is mandatory to file a GSTR-3 monthly return for each and every person registered under GST (except compounding and ISD taxpayers).

When to file Form GSTR-3?

Every registered taxpayer is required to file monthly return on or before 20th of next month.

Penalty for Non-furnishing of GSTR-3

If GSTR-3 for a month is not filed, then the GSTR-1for the next month cannot be filed by the taxpayer, leading to delay in filing which will attract penalties.

  • Further, if a taxpayer fails to file GSTR-2 return on the 15th, then the taxpayer would not be able to file GSTR-3 return on the 20th.
  • Hence, late filing of GST return will have a cascading effect leading to fines and penalty as discussed below;

Consequences if GSTR -3 is Filed Late

According to GST Council norms, in case the taxpayer pays the tax after dues, it is considered as a late payment and shall be liable to pay “interest” (@18%p.a,) and late fee. Interest will be calculated on the amount of tax outstanding to be paid, from the next day after the due date till the date when the tax is actually paid

Let’s say: If a person missed the tax due date, then it shall be computed as: If tax amount is Rs 1,000, interest rate is 18% p.a, day delay is 1 day

  • 1000*18/100*1/365= Rs 0.49 for a day delay
  • Late fee is Rs 100 per day per Act. So it is Rs 100 under CGST & 100 under SGST. Total will be Rs 200/day. Maximum is Rs 5,000. There is no late fee on IGST.

How to Revise GSTR-3?

A GSTR-3 once filed cannot be revised as it is auto-populated from GSTR-1 and GSTR-2. Any mistake made in the return can be revised only in the next month’s GSTR-1 and GSTR-2 returns.

What Details are Included in the Form GSTR-3?

GSTR-3 return will include the following details: 

  • Information about ITC ledger, cash ledger, and liability ledger
  • Details of payment of tax under various tax heads of CGST, SGST, IGST
  • An option to claim refund of excess payment for a taxpayer

The following details are also included in GSTR-3 in tabular formats:

  • Received TDS credit
  • TDS credited to the cash ledger of the deductee
  • Interest liabilities
  • Penalty fees (if any)
  • Others

Proforma of GSTR-3

You can view and download the form here.

Headings that appear under GSTR-3 and their significance

# Headings Details to be furnished
1. GSTIN (Goods and Services Taxpayer Identification Number ) 15 digit state-wise PAN number
2. Legal Name of the Taxpayer and trade name if any Will be auto-populated when a taxpayer will login to the common GST portal
3.
4. Tax Period Period / month or year of tax to which the Return pertains (for which GSTR-1 is being filed); to be selected from drop-down menu
5. Details of turnover All types of supplies by bifurcating in:

  • Taxable [other than zero rated]
  • Zero rated supply on payment of Tax
  • Zero rated supply without payment of Tax
  • Deemed exports
  • Exempted
  • Nil Rated
  • Non-GST supply
6. Outward supplies (will get auto-populated from GSTR-1) Sub-headings appear as follows:

  • Inter-State Supplies to Registered Taxable Person
  • Inter-State Supplies to Consumers
  • Intra-State Supplies to Registered Taxable Person
  • Intra-State Supplies to Consumers
  • Exports (including deemed exports)
  • Revision of Supply Invoices / Credit Notes / Debit Notes Total Tax Liability on Outward Supplies
7. Inward supplies (will get auto-populated from GSTR-2) Sub-headings will appear as follows:

  • Inter-State Supplies Received
  • Intra-State Supplies Received
  • Revision of Purchase Invoices / Credit Notes / Debit Notes
  • Imports
  • Total Tax Liability on Inward Supplies on Reverse Charge
  • ITC reversal
8. Total monthly Tax Liability On declaration of the entire inward and outward supplies, GSTN portal makes auto-calculation of the monthly tax liability for both dealing in goods and provision of services. Furthermore, a separate value for SGST, GIST and CGST is shown.
9. Receipt of TDS credit during the month Any tax credit related to TDS will be auto populated from GSTR-2.
10. Receipt of TCS credit during the month This is only for merchants registered as ecommerce operators. Any amount of TCS collected by the E-commerce operator will be accessible here from the GSTR-2 filed for the same period.
11. Receipt of ITC during the month Total eligible amount of input tax credit available for alteration will get auto-calculated here.
Part B
12. Tax, Interest, Late Fee and Penalty Paid Under this head, input from all the headings determine the final GST liability along with separate presentation of tax liability against IGST, CGST, and SGST. Here, the taxpayer has an option to debit cash ledger/ credit ledger against the outstanding liability.
13. Refunds Claimed (from Cash Ledger) The taxpayer can claim a refund of Input Credit amount in excess of tax liability in this header.

On correct furnishing of the entire particulars; the signature verification of taxpayer is required for authentication of the return. The taxpayer needs to sign digitally either through a digital signature certificate (DSC) or Aadhaar based signature verification.

How to File GSTR-3?

Step-by-step procedure to file GSTR-3:

GSTR 3 has a total of 15 tables. However, the taxable person need not worry as most of these will be pre-filled. Part A includes Table 3 to 11, which will be completely auto-populated. Part B includes 12 -15 which will need to be populated by the taxpayer. Let’s see each in detail

1. GSTIN or GST Identification Number

  • Firstly, you need to provide GSTIN. GSTIN stands for Goods and Services Taxpayer Identification Number.
  • The GSTIN is a 15-digit number which includes 2-digit state code, 10-digit permanent account number, and 3-digit includes state, future use, and check-digit. It is auto-populated when we file returns.

2. Name of the Taxpayer

  • Name of the taxpayer including legal and trade name
  • Month, Year – Mention the relevant month and year for which GSTR-3 is being filed.
  • However, it will be auto-generated.

3. Turnover

This heading generally includes total turnover of all types of supplies. Total turnover is bifurcated between:

  • Taxable Turnover [other than zero rated]: This includes the normal sales to both registered and unregistered buyers.
  • Zero-rated supply on payment of tax: This will include exports which are paid by paying IGST (later reclaimed as refund)
  • Zero rated supply without payment of tax: This will include exports which are paid with bond/LUT.
  • Deemed exports: These are items sold to SEZ (the goods do not actually leave the country)
  • Exempted: These are goods/services which do not attract 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.

4. Outward Supplies

Summary of all the sales for the month should be filled here, however the same will be auto-generated from your GSTR-1.

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

This heading will contain all inter-state sales with the following details

  • Taxable supplies (other than reverse charge and zero-rated supply) [Tax Rate Wise]:
  • Total sales except on those on which reverse charge applies and exports
  • Supplies attracting reverse charge-tax payable by recipient of supply: These are sales on which your buyer will pay GST under reverse charge
  • Zero-rated supply made with payment of IGST: These are exports which are paid by paying IGST (later reclaimed as refund)

(a) Inter-state suppliers
(b) Intra-state suppliers
(c) Tax effects of amendments made in respect of outward supplies-

This shows the changes if any in your sales invoice, if the amount is changed there can be changed in ITC. It might results in excess or under payment. This ultimately helps to keep a track on the invoices which changes have been made and impact of the same.

5. Inward supplies attracting reverse charge including import of services (Net of advance adjustments)

This contains purchases and suppliers you received during the month.

It has two sub-sections i.e… Part 5A and 5B

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

  • This includes your purchases where reverse charge is applicable. Both inter-state and intra-state sales appear here.
  • Tax liability due to reverse charge is net of invoices, debit/credit notes, advances paid and adjustments of advances.

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

This will contain the changes made to your purchases which attract reverse charge.

6. Input Tax Credit

This also has two parts
Part I: This shows summary of ITC available to you separately for Inputs, Input services and capital goods.
Part II: This contain changes made to earlier month’s details and their effect on ITC.

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

This shows the mismatches in ITC and tax liability between the original returns and any changes filed during the current month.

8. Total Tax liability

This is the vital part as GST Portal will calculate your tax liability here under different tax heads of CGST, SGST & IGST
It shows the following breakup:-

  • 8A. on outward supplies: This is tax payable on your normal sales including inter-state sales.
  • 8B. on inward supplies under reverse charge: This is the tax payable on purchases attracting reverse charge.
  • 8C. On account of ITC reversal or reclaim: This is the additional tax payable/or reduction available due to ITC reversal or reclaim. The information flows from Table 11 of GSTR-2.
  • 8D. On account of mismatch/ rectification /other reasons: This will include tax liability due to any other reason.

9. The credit of TDS and TCS

  • TDS credit – Any tax credit available by way of TDS will be auto-populated here from taxpayer’s GSTR 2.
  • TCS credit – Similar to TDS above, in the case of E-commerce marketplace sellers, any amount of TCS collected by the E-commerce operator will be available here. This information will again be flowing from the GSTR 2 filed for the same period.

10. Interest liability

The interest liability is calculated here, as discussed Interest is applicable for the late payment @ 18% per annum.

11. Late Fees

This shows the late fees paid and payable to the state and central government as discussed late fee is Rs. 100/per day and maximum of Rs 5,000.

12. Tax payable and paid

The tax paid or payable to the state or central Government is computed here:
For example, if you have a tax liability of Rs 50,000 and ITC of Rs 10,000, you can opt to pay Rs 40,000 in cash (fill up col 3) and Rs 10,000 through ITC (fill up the appropriate columns under 4, 5, and 6

13. Interest, late fee or any other amount paid or payable

14. Refund claimed from the electronic cash budget

In case, it is found that the tax paid is higher than the actual amount then the difference will be refunded to you.
Refund from cash ledger can only be claimed only when all return related liabilities for the month have been discharged.
Refund claimed Table 14 will result in a debit entry in electronic cash ledger on filing of valid GSTR 3.

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

This gets filled automatically once you pay tax and file your returns

Finally, sign off with a declaration that all information has been supplied and is correct. On correct furnishing of the entire particulars; the signature verification of taxpayer is required for authentication of the return. The taxpayer needs to sign digitally either through a digital signature certificate (DSC) or Aadhaar based signature verification.

Frequently Asked Questions

1. Who is exempt from filing GSTR-3?

Answer: 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 deduct TCS
  • Person 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)

2. Is there any scope for Direct revision in GSTR-3?

Answer: Direct revision in GSTR-3 is not possible as it is an auto-generated without provision for editing.

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

Answer: GSTR-3 is a simple tax return form introduced by the CBEC for the month of July and August 2017.It is mandatory for all those who have registered for GST. 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, one will have to pay the extra amount of tax along with interest on the extra amount.

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