All about GSTR 3B with latest amendments

GSTR 3B & Linking it with GST TRAN-1

Related Sections

• Section 39 of CGST Act 2017
• Section 49 of CGST Act 2017
• Section 54 of CGST Act 2017
• Section 140 of CGST Act 2017

Related Rules

• RULE 61 + FORM GSTR 3 & 3B
• RULE 96
• Rule 117 of CGST Rules

Related Notifications

• 10/2017 (CT) - Introduction of Rule 61 and GSTR 3 & GSTR 3B.
• 15/2017 (CT) - Amendment to Rule 96 w.r.t Exports.
• 17/2017 (CT) - Amendment to Rule 61 (5) and addition of Rule 61 (6).
• 21/2017 (CT) - GSTR 3B Time Limit For July & August.
• 23/2017 (CT) - Conditions for Further Extension Till 28th August 2017.

What is GSTR 3B and where it is mentioned?

• Form GSTR 3B is cited in the Rule 61(5) of CGST Rules 2017 which was amended through Central Tax Notification No. 17/2017 dated 27th July 2017
• The law provides that if due date of filing GSTR 1 & 2 has been extended then in that case commissioner may specify that the particulars in FORM GSTR 3B shall be furnished.
• Accordingly CBEC introduced GSTR 3B for month of July and August.
• Since due dates for filing of GSTR 1 & 2 were extended vide CT notification no. 18/2017 & 19/2017 respectively, therefore in accordance with Rule 61(5) authorities vide CT Notification No. 21/2017 dated 08/08/2017 provided that return for month of July 2017 shall be furnished in FORM GSTR-3B electronically before 20/08/2017 and for month of August 2017 shall be furnished in FORM GSTR-3B electronically before 20/09/2017.
• Later government vide CT notification no. 23/2017 dated 17/08/2017 specified conditions in accordance with Rule 61(5) for furnishing return in FORM GSTR-3B for July, 2017 for different class of registered persons.
• Invoice wise details need not to be filled in GSTR-3B
• GSTR 3B will help in easy transition of earlier Tax Credits if any to the new GST Regime
• It is to be noted that since due date of GSTR 1 & 2 has been extended only for the month of July and August, therefore GSTR 3B is only to be filed for these month as of now. From September 2017 onwards only GSTR 3 needs to be filed subject to condition that no extension will be made to GSTR 1 & 2 of September 2017.
• It is also important to note that registered person will not be absolved for filling GSTR 1,2 & 3. As per Rule 61(6) GSTR 3 will be filed later for above months some data will be auto populated from GSTR 3B which you need to file now. Registered Person can modify auto populated information of Part B of GSTR-3 w.r.t. discrepancies, if any, and accordingly discharge his tax and other liabilities, if any. And if ITC mentioned in GSTR-3 exceeds amount of ITC mentioned in GSTR-3B, then additional amount shall be credited to e cash ledger of Registered Person.
• As per section 39(1) & (8) every registered person must file GSTR 3B even if you do not have any transactions during the month.

How GSTR Tran-1 and GSTR 3B are related?

• GSTR 3B and GSTR Tran-1 have no link except established by CT notification 23/2017 dated 17th August 2017. Which decides the due date of filing GSTR 3B only on the basis of filling of GSTR Tran-1.
• The notification provides conditions as follows:

What does above table imply - Those Registered Person who want to claim benefit of ITC as on 30th June 2017 shall file TRAN-1 before GSTR-3B. And in that case last date of filing of GSTR-3B has been extended to 28th August 2017. But to choose this option the conditions must be complied with which are as follows:

(i) For July 2017 compute 'tax payable under CGST Act' and deposit same in cash on or before 20th August, 2017;

(ii) File GST TRAN-1 before GSTR-3B;

(iii) where amount of tax payable under CGST Act for July 2017, as detailed in GSTR-3B, exceeds amount of tax deposited in cash in point no. (i), then pay such excess amount in cash on or before 28th August, 2017 along with 18% interest from 21st August 2017 to date of such deposit

How to file GSTR 3B?

• If Registered Person is using a dedicated software then that person can file GSTR 3B in some clicks (differ from software to software)
• Otherwise follow the steps as provided by the portal itself

Who are not required to file GSTR 3B?

• As per section 39(1) read with Rule 61 following registered persons are not required to file GSTR 3B
• Input Service Distributors
• Composition Dealers
• Suppliers of OIDAR services
• Non-resident taxable person
• TDS Deductors and TCS Collectors

Claiming ITC as on 30th June 2017 in GSTR-3B

• GSTR 3B has nothing to do with above ITC directly. It is only Tran-1 that link above ITC with GSTR 3B.
• For taking above ITC one must file transition forms. TRAN -1and TRAN-2  to carry forward credit of old laws to GST law.
• In GSTR 3B one can only claim above ITC if that registered person have filed Tran-1 before GSTR 3B. This is the reason that Govt has provided more time to fillers of GSTR Tran-1. Thus helping them in taking benefit of opening credit.

Yipee!! Case Study

Case A - Registered persons planning not to avail transitional credit for discharging the tax liability for month of July, 2017 or new registrants who do not have any transitional credit. Following steps must be Complied with:

a. Calculate tax payable = (Output tax liability + Tax payable under RCM) - ITC availed for July, 2017

b. Deposit above in cash on or before 20.08.2017 which will get credited to e cash ledger

c. File return in FORM GSTR-3B on or before 20.08.2017 after discharging the tax liability by debiting the electronic credit or cash ledger.

Case B - Registered persons planning to avail transitional credit for discharging the tax liability for the month of July, 2017 need to follow the steps as detailed below:

a. Calculate tax payable = (Output tax liability + Tax payable under RCM) - (transitional credit (from TRANS 1 ) + ITC availed for month of July, 2017)

b. Pay above in cash on or before 20.08.2017 which will get credited to e cash ledger

c. File FORM GST TRAN-1 (which will be available on the common portal from 21.08.2017) before filing return in FORM GSTR-3B

d. In case tax payable as per GSTR-3B is greater than cash amount deposited as per point 2, then deposit balance in cash along with interest @18% calculated from 21.08.2017 till the date of such deposit. This amount will also get credited to electronic cash ledger;

e. File the return in FORM GSTR-3B on or before 28.08.2017 after discharging the tax liability by debiting the electronic credit or cash ledger.

Point wise Particulars explanation of GSTTR 3B (Only some points)

a. No Invoice wise information is required

b. No Rate wise information is required

c. Value of Outward taxable supplies= Value of invoices of Taxable Supplies + value of debit notes w.r.t. Taxable Supplies - value of credit notes w.r.t. Taxable Supplies + value of advances received for which invoices have not been issued in the same month - value of advances adjusted against invoices.

d. Eligible ITC - ITC details must have been provided separately in terms of IGST, CGST, SGST, UTGST and Cess because the sequence of set of is different in each case as per section 49(5) which is as follows

• IGST shall first be utilised towards payment of IGST -> CGST -> SGST/ UTGST;
• CGST shall first be utilised towards payment of CGST -> IGST SGST/UTGST
• SGST/UTGST shall first be utilised towards payment of SGST/UTGST -> IGST CGST

e. ITC Available (whether in full or part) - This information must be broken down into ITC on:

• import of goods,
• import of services,
• inward supplies on reverse charge (other than the on import of goods and services reported above)
• inward supplies from your Input Service Distributor (ISD) basically your head office registered as an ISD under GST
• all other ITC

f. Where to show ITC as on 30/06/2017, though the clarification is needed on this aspect from the concerned authority. The opinion of the professionals are divided were some says Opening ITC must be shown in relevant heads, while some are of the opinion that opening ITC must be shown in heading others. This can only be shown here in this point no. 4 if the Registered Persons have filed TRAN-1 and TRAN-2 forms.

g. ITC Reversed -  For e.g. as per provisions of GST Laws ITC must be reversed for goods and services if used partly for business and partly for other purposes, only to extent not used for business.