Can the filling of GSTR-3B be avoided by filing GSTR-1, 2 & 3?

Introduction: This article discusses in detail  "whether GSTR-3B is to be filed mandatorily or not when it entails huge tax liability due to submission of some wrong information & non revision of the same or filing of the same can be avoided filing of GSTR-1, 2 & 3?"

Query : Sir, i have done mistake in GSTR-3B while submitting the same which has resulted in huge tax liability, so i have not filled the same as there on option to rectify the same on GST website. Can I avoid the filling of GSTR-3B and comply with law by GSTR-1, 2 & 3 in the days to come?

Ans.  No.  The filling of GSTR-3B is mandatory as per CGST rule 61(5).

For this, attention is invited to old & revised CGST rule 61(5)  & newly introduced rule 61(6)  vide notification no. 17 /2017 Central Tax dated 27th July 2017 and are reproduced below:

Old 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, return in FORM GSTR-3B, in lieu of FORM GSTR-3, may be furnished in such manner and subject to such conditions as may be notified by the Commissioner

Revised 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 the manner and conditions subject to which the]10 return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

New Rule inserted

61(6) Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in FORM GSTR-2-

(a)  Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based  on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period;

(b)  the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other liabilities, if any;

(c)   where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person.

Earlier Rule 61(5) specified that GSTR-3B is to be filed in lieu of GSTR-3. Which meant that if you are filing GSTR-3B, you need not file GSTR-3.

But, the words "in lieu of" have been removed in the amended Rule 61(5). Accordingly it can be construed that:

• A tax payer has to file GSTR-3B
• A tax payer also has to file GSTR-3

Analysis of newly inserted rule 61(6)

Auto Generation of GSTR-3

A new rule 61(6) provides that once GSTR-3B has been filed, GSTR-3 will be auto-generated by GSTN.

• GSTR-3 will be generated after due date for furnishing GSTR-2 which shall be consisting of 2 parts i.e. Part-A & Part-B

• Part A of GSTR-3 will be auto-generated based on information provided in:

• GSTR1 and GSTR2
• Other liabilities of preceding tax periods

• Part B of GSTR-3 will be auto-generated based on information provided in GSTR-3B

Discrepancy between GSTR-3 and GSTR-3B

Tax liability in GSTR-3 and GSTR-3B will be matched and:

• If tax liability in GSTR-3 is higher than what is declared in GSTR-3B, tax payer will have to modify Part B of GSTR-3 and discharge the shortfall in liability.

• If tax liability in GSTR-3 is less than what is declared in GSTR-3B, the surplus will be credited to electronic credit ledger of the taxpayer.

Revised due dates of filing GSTR-3B as per latest Notification No. 35/2017 – Central Tax dated 15th September, 2017

From the above discussion, it is amply clear that filing of GSTR-3B is mandatory in addition of filling of GSTR-1, 2 & 3.

If GSTR-3B is not filled with in time prescribed that there shall be levy of late fee @ Rs. 100 per day subject to maximum of Rs. 5,000/- per Act along penal interest for non payment of tax.

However in case of GSTR-3B wrongly submitted by not filed due to excess tax liability, a request may be made to jurisdictional commissioner to allow revision of the same.

The author is a practicing CA based in Delhi and is registered Insolvency Professional. He can also be reached at cavinodchaurasia@gmail.com

Disclaimer: The views expressed in this article are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.