GSTR-3B is a summary of supplies made during the month along with GST to be paid.
It discloses summary of input tax credit claimed, purchases on which reverse charge is applicable, etc.
Important Update
| Taxpayers will not be able to modify values auto-populated in GSTR-3B from GSTR-1/1A/IFF or GSTR-2B as it will automatically derived from supplies declared in GSTR-1, GSTR-1A, or IFF. |
| FORM GSTR-3B will be blocked from January 2025, as it changes the previous process where GSTR-3B could be filed even if GSTR-2B wasn’t available. Now, GSTR-3B can be filed only after FORM GSTR-2B of the said tax period is made available on the portal. |
Auto-Populated Data In GSTR-3B Form
- Taxpayers will no longer be able to modify values auto-populated in GSTR-3B from GSTR-1/1A/IFF or GSTR-2B.
- It will automatically derived from supplies declared in GSTR-1, GSTR-1A, or IFF.
Suggested Actions for Taxpayers
For outward Supplies
- Taxpayers can correct errors in outward supplies reported in GSTR-1 or IFF via GSTR-1A.
- This ensures accurate liability is reflected before filing GSTR-3B.
For Inward Supplies
- Taxpayers can manage ITC claims by taking informed actions on inward supplies
- Options include accept, reject, or pending invoices, ensuring correct ITC claims in GSTR-3B.
Key Amendments
The GST Council has recommended significant amendments in the CGST Act, 2017 and CGST Rules, 2017 to strengthen the functionality of the Invoice Management System (IMS). Here are the key amendments:
Amendment to Section 38 of CGST Act, 2017 and rule 60 of CGST Rules, 2017
Purpose
- To establish a legal framework for generating FORM GSTR-2B.
- To improved accuracy in input tax credit (ITC) reconciliation.
In Detail
FORM GSTR-2B will now be generated based on the actions taken by taxpayers on the IMS. This will ensures that ITC details are aligned with suppliers invoices uploaded in IMS.
Amendment to Section 34(2) of CGST Act, 2017
Purpose
- To mandate ITC reversal for credit notes issued by suppliers.
In Detail
When a credit note is issued by a supplier, the recipient must reverse the corresponding ITC. This will allow the supplier to reduce their output tax liability and align between ITC claimed and credit adjustments.
Insertion of Rule 67B in CGST Rules, 2017
Purpose
- To prescribe the procedure for supplier’s output tax adjustment.
In Detail
Rule 67B will provide a manner in which the output tax liability of the supplier shall be adjusted against the credit note issued by him.
Amendment to Section n 39 (1) of CGST Act, 2017 and rule 61 of CGST Rules, 2017
Purpose
- To link the filing of FORM GSTR-3B with the availability of FORM GSTR-2B.
In Detail
FORM GSTR-3B of a tax period shall be allowed to be filed only after FORM GSTR-2B of the said tax period is made available on the portal.
Example
Earlier, if your GSTR-1 for November 2024 is filed on 2nd December 2024, GSTR-3B reflects on the same day. But from now you can file GSTR-3B only after FORM GSTR-2B of the said tax period is made available on the portal.
Note: GSTR-3B can only be filed after GSTR-2B is generated, ensuring ITC reflects accurately.
Conclusion
The new provisions will shorten the time available for filing GSTR-3B, aligning it with the availability of GSTR-2B. But this change aims to improve the compliance, ITC claims are based on up-to-date, and enhance the accuracy of tax filings.