GSTR-3 capture the aggregate level outward and inward supply information. It would be auto-populated through GSTR-1 and GSTR-2 of the registered person. There would be minimal manual intervention and system itself would be updating records.
GSTR3 would be a consolidated monthly return and will contain details of tax liability along with the tax collected on outward supplies and tax paid on inward supplies by registered person.
GSTR-3 is a monthly return with the summarized details of Sales, Purchases, Sales during the month along with the amount of GST liability.
we need to understand certain terms:
- GSTIN – Goods and Services Taxpayer Identification Number
- UQC – Unit Quantity Code
- HSN– Harmonised System of Nomenclature
- UIN – Unique Identification Number
- POS – Place of Supply of Goods and Services
- SAC – Services Accounting Code
- B2B – From one registered person to another registered person
- B2C – From registered person to unregistered person.
Why is GSTR-3 important?
GSTR-3 will show the amount of GST liability for the month. The taxpayer must pay the tax and then file the return.
Who should file GSTR-3?
Every registered Taxpayer 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 (ISD)
- Non-resident taxable person
- Composition Dealers
- Persons liable to collect TCS
- Persons liable to deduct TDS
What is GSTR-3 Form?
GSTR-3 is more like a pooled vresion of GSTR-1 and GSTR-2. GSTR-3 is a return to be filed on monthly basis.
The form captures the information of outward and inward suplly 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 , turnover except GST and taxtable turnover .A taxpayer just has to validate this prefilled information and make any changes or modification if required.
What does GSTR-3 Form Contains?
GSTR 3 Format has a total of 15 headings prescribed by the government. the headings under GSTR-3 are auto-populated fetching data from GSTR-1 and GSTR-2 and hence will involve minimal time to fill in.
- The Taxable Person need not to worry as most of these will be Pre-Filled.
- Tables 3 to 11 are included within Part A, which will be completely auto-populated.
- Tables 12 to 15 are included within Part B, which will need to be populated by the Taxpayer.
We have explained each heading along with the details required to be reported under GSTR-3.
- Provide The GSTIN :
Goods and Services Taxpayer Identification Number for each taxpayer. This column will be auto-filled. Provisional id can also be used as GSTIN if you do not have a GSTIN.
- Name of the Registered Person:
Name of the registered taxpayer will be auto-filled at the time of logging into the common GST Portal.
Trade Name, if any, should be separately provided,
- Both the individual and the trade name will populate.
- Month and Year: The correct month and year for which the GSTR-3 is being filed, has to be filled in.
Month, Year – Mention the relevant month and year for which GSTR-3 is being filed.
PART A (Auto-populates up till point 11 and also point 15)
- Turnover :
Turnover of all types of supplies are consolidated under this heading. Gross turnover needs to be bifurcated between:
- Taxable Turnover Except 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
- 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.
- Nil rated and Exempted Turnover
- Non-GST Turnover: These are items like petrol, electricity which are outside the scope of GST.
- Total Turnover (sum of above all)
- Export Turnover.
- Outward Supplies:
All the details filed in GSTR 1 will automatically come under this heading.This heading will contain summary of all your sales during the month. All such information gets auto-populated under their respective subheadings which are as follows:4.1 Inter-State Supplies to Registered Taxable Person (Net Supply fo the month)
This Heading will cntans all the INTER-STATE SALES with the following details:
(i).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
(ii).Supplies attracting reverse charge-tax payable by recipient of supply: These are sales on which your buyer will pay GST under reverse charge
(iii).Zero rated supply made with payment of Integrated Tax
(iv). Out of the supplies mentioned at A, the value of supplies made though an e-commerce operator attracting TCS
4.2 Intra-State Supplies to Registered Taxable Person (Net Supply fo the month) it contains the details of intra-state sales
4.3 Tax effect of amendments in terms of outward supplies:This will contain the changes made to your sales invoice. Changing the invoice amount has a direct impact on ITC, which in continuation impacts the revenue of the government.
- Inward supplies with reverse charge including import of services [Net of advance adjustments]:This heading will auto-populate and fetch data from GSTR-2 comprising of all the [purchases made + supplies received] during the month.5A. Inward Supplies with tax payable on reverse charge:It comprises of transactions where the reverse charge is applicable, i.e. the buyer pays it.Includes sales both from inter-state and intra-state and the tax liability arising due to reverse charge is the sum of net of invoices, debit/credit notes, advances paid and adjustment of advances.
5B. Tax effect of changes in terms of supplies with reverse charge: It will capture the purchase amendments [excess / under payment] attracting reverse charge. This heading is basically meant to keep a track of the changed purchase invoices and also capture the change in the tax amount therefore.
- Input tax credit :
ITC on inward taxable supplies, including imports and ITC received from ISD [Net of debit notes/credit notes]Part I: It will individually show the summarized ITC for a calendar month under:
- Input products: The raw material
- Input Services: Any consulting fees
- Capital goods: A printer etc.
Part II: It will show the changes made to earlier month’s details [if any] and their subsequent impact on ITC.
- Addition/reduction in output tax for mismatch and other miscellaneous reasons:This heading will contain the mismatches in ITC and tax liability between the original returns and any changes filed during the current month. This information will be sourced from GSTR-2.
- Total tax liability:
Total Tax Liability for the month, the main portion as GST Portal will calculate your tax liability here under different tax heads of CGST, SGST & IGST.
- Credit of TDS and TCS:
TDS and TCS will be deducted from the overall tax liability to ascertain the tax amount to be paid.
- Interest liability (Interest as on ..)
Interest Liability on late filing will be calculated here:
- Late Fee
This will include the details of the Late Fees that is being paid and payable to the Central and the State Government.
Part B This part will be filled up by the taxpayer. The Part A is shown automatically by the GST Portal.
- Tax payable and paid
This will include the details of the tax that is being paid and payable to the Central and the State Government.
- Interest, Late Fee and any other amount (other than tax) payable and paid:
This will include the details of the Interest and Late Fees that is being paid and payable to the Central and the State Government.
- Refund claimed from Electronic cash ledger:
- Debit entries in electronic cash/Credit ledger for tax/interest payment :
It includes the details of the debit entries in cash ledger for tax/interest payment and it is to be populated after payment of tax and submissions of return.
When to File GSTR-3 Form and Who can File GSTR-3 Form?
Every registered Taxpayer is required to file monthly return on or before 20th of next month. and to file a GSTR-3 monthly return for each and every registered taxpayers under the GST.
What happens if GSTR3 is Not Filed?
If GSTR3 return is not filed then the GSTR-1 of the next month cannot be filed. Hence, late filing of GST return will have a cascading effect leading to Heavy Fines and Penalty.
What happens if GSTR-3 is Filed Late?
If you delay in filing, you will be liable to pay interest and a late fee.Interest is 18% per annum. It 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 (16th of the month) to the date of payment.
Late fee is Rs. 100 per day as per the Act. So it is 100 under CGST & SGST. Total will be Rs. 200/day. Maximum is Rs. 5,000.There is no late fee on IGST.