What is GSTR 3?
We have already discussed form GSTR 1 and GSTR 2 of GST return filing. They deal with the sales of the organization and the purchases of the organization respectively. Form GSTR 3 of GST return filing deals with the monthly summary of the sales and purchases of the organization. It also deals with the tax liability of the same.
GSTR 3 returns are auto generated by obtaining data from GSTR 1 and GSTR 2.
Filing GSTR 3 is important as it will help the organization to know the GST which is payable foe the month.
Non-payment or delayed payment of GSTR 3
In any case when GSTR 3 returns are not filed within the stipulated time period then the GSTR 1 returns of the coming month cannot be filed. Therefore, if any individual or organization fails in filing GSTR 3 return they will face huge amounts of fines and penalties.
In case an individual or an organization happens to file GSTR 3 returns later than the stipulated time period then they will face interest on the amount of GST they were supposed to pay, along with some late fees. Interest is 18% per annum. The interest 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 i.e.16th of the month to the date of payment. Late fee is Rs. 100 per day per Act. Therefore, 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 must procee with filing GSTR 3 returns
Every registered person registered under GST is required to file GSTR-3 irrespective of whether there are any transactions during the month or not.
However, these registered persons are exempted from filing GSTR-3–
- input service distributor
- composition dealers
- Non-resident taxable person
- person liable to collect TCS
- Person liable to deduct TDS
- Suppliers of online information and database access or retrieval services (OIDAR), who themselves have to pay tax as per Section 14 of the IGST Act
Details to be provided in Filing GSTR-3
The following are the details that an individual has to submit in order to fill their GSTR 3 returns.
- Provide GSTIN
An individual can use Provisional id as GSTIN if he does not have a GSTIN
2. Name of the Taxpayer
Name of the taxpayer along with legal and trade name will be auto-populated
Month, Year – relevant month and year has to be mentioned for which GSTR-3 is to be filed.
GSTR-3 is divided into 2 parts. Part A is auto-populated from GSTR-1, GSTR-1A & GSTR-2 and Part B is to be filled up manually.
PART A (entirely auto-populated)
Part A will include turnover of the individual, outward supplies, Inward supplies attracting reverse charge including import of services (Net of advance adjustments),ITC i.e. input tax credit, addition and reduction in the amount of output tax, total tax liability, credit of TDS and TCS, interest payable in case of late payments, late fees payable.
This part will be filled up by the taxpayer as per their details.
12. Tax payable and paid
The taxpayer have to fill up the appropriate columns with the appropriate amounts.
In case your tax liability is of Rs. 40,000 and also ITC of Rs. 10,000, you can opt to pay Rs. 30,000 in cash (fill up col 3) and Rs. 10,000 through input tax credit ( ITC) (fill up the appropriate columns under 4, 5, and 6.
Go through the ITC claim rules.
13. Interest, Late Fee and any other amount ,other than tax, payable & paid
In this column, the taxpayer have to fill in the amount payable and the amount paid under interest, late fee with the breakup of tax heads in case of delay or nonpayment of taxes
Note: There is no late fee for IGST.
14. Refund claimed from Electronic cash ledger
If it is discovered that the tax paid by you is higher in amount than the actual amount payable then the difference amount will be refunded to the taxpayer.
- Refund from cash ledger can be claimed only when all return related liabilities for the month have been discharged.
- Refund claimed under 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 or interest payment
This section of the return will be automatically filled in when the individual pays taxes and submits their returns.
Finally the taxpayer needs to sign off with a declaration saying that all information that has been provided is correct.
thus, by following the above procedure, filing GSTR 3 will be concluded.