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What is GSTR 3?

The GSTR 3 is a monthly tax return that is auto-populated by capturing data from GSTR 1 and GSTR 2, it consists the summarized details of outward supplies and inward supplies made during the month along with the GST liability.

Part A of this return is generated electronically on the basis of information furnished through FORM GSTR 1, FORM GSTR 2 & based on liabilities of preceding tax periods.

Registered person who is filing GSTR 3, subject to provisions of section 49 has to discharge his liability towards tax, interest, penalty by debiting electronic cash ledger or electronic credit ledger & thereof the details about payment of tax should be filled in Part B of GSTR 3 and a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in Part B of the return in FORM GSTR 3 and such return shall be deemed to be an application filed under section 54(refunds).

Where the time limit for furnishing GSTR 1 & GSTR 2 has been extended & circumstances so warrant, the commissioner may by notification specify the manner and conditions subject to which return shall be furnished in FORM GSTR 3B, in such case,

  • Part A of GSTR 3 shall be electronically generated on the basis of information furnished in GSTR 1, GSTR 2 and Part B of said return shall be electronically generated on the basis of information furnished in GSTR 3B
  • If there are any discrepancies between GSTR 3B & GSTR 3 then a registered person can modify Part B of GSTR 3
  • Where the amount of ITC in GSTR 3 exceeds the ITC in GSTR 3B, additional amount shall be credited to electronic credit ledger

Who has to file the GSTR 3?

It is mandatory for every registered taxpayer to file GSTR3 irrespective of the number of transactions carried out during the month.

However, the following registered taxpayers do not have to file GSTR 3:

  • Input Service Distributors – they will submit GSTR 6
  • Composition Dealers – they will submit GSTR 4
  • Non-resident taxable person- they will submit GSTR 5
  • Taxpayer liable to collect TCS under section: 52 they will submit GSTR-8
  • Taxpayer liable to deduct TDS under section:51- they will submit GSTR-7
  • Person referred to in section 14 of IGST act(person who is providing OIDAR services)

Deadline for GSTR 3 submission.

Month Due Date For Filing
July Up to 11th December 2017
August onwards Yet to be declared

Particulars to be filed under GSTR 3

Month & Year – The month & Year for which return is to be filed should be selected.
  1. GSTIN – The GSTIN of the registered taxpayer will be auto-populated here.
  2. Name of the Registered Person –Name of the registered taxpayer or trade name (if any) will be auto-populated here.
  3. Turnover – The total turnover of all types of supplies is merged under this section. The gross turnover will be divided into:
    • Taxable Turnover [other than zero rated]
    • Zero-rated supply on payment of tax
    • Zero-rated supply without payment of tax
    • Deemed exports
    • Exempted
    • Nil Rated
    • Non-GST supply
  4. Outward supplies – The summary of all your outward supplies data of the month will be captured from your GSTR-1 and auto-populated under this section.
    • Inter-State supplies (Net Supply for the month)
    • This section will contain the details of all inter-state outward supplies with the following details

      • A. Taxable supplies (other than reverse charge and zero-rated supply) [Tax Rate Wise]
      • B. Supplies attracting reverse charge-tax payable by recipient of supply
      • C. Zero-rated supply made with payment of IGST
      • D. Out of the supplies mentioned at A, the value of supplies made through an e-commerce operator attracting TCS-[Rate wise]
    • Intra-State supplies (Net supply for the month)
      • A. Taxable supplies (other than reverse charge and zero-rated supply) [Tax Rate Wise]
      • B. Supplies attracting reverse charge-tax payable by recipient of supply
      • C. Out of the supplies mentioned at A, the value of supplies made through an e- commerce operator attracting TCS-[Rate wise]
    • Tax effect of amendments made in respect of outward supplies
    • The details of all the changes that have been made to your outward supplies are captured under this section. The data reflected under this section helps in keeping a track of outward supplies with changes and the impact of these changes on the tax amount.

  5. Inward supplies attracting reverse charge including import of services (Net of advance adjustments) – The details of all the inward supplies that have been made and the supplies received during the month will be auto-populated from the data filed in your GSTR 2 under this heading.
    • 5A. Inward supplies on which tax is payable on reverse charge basis:
    • The details of your inter-state and intra-state inward supplies with reverse charge applicability will appear under this section.

    • 5B. Tax effect of amendments in respect of supplies attracting reverse charge::
    • The details of all the changes that have been made to your inward supplies which attract reverse charge are captured under this section. The data reflected under this section helps in keeping a track of (invoices, credit debit notes, advances) with changes and the impact of these changes on the tax amount.

  6. Input tax credit
    This heading consists of details of the ITC on inward taxable supplies, including imports and ITC received from ISD
  7. Part I

    In this section, the details of the ITC available to you in the month are captured. ITC will be shown separately for:

    • Inputs– the inputs
    • Input Services– Such as consulting fees
    • Capital Goods– Such as laptop

    ITC received from Input Service Distributor (ISD) will also be shown here. All ITC will be shown after adjusting debit/credit notes.

    Part II

    This part will contain changes made to earlier months’ invoice details and their effect on ITC.

  8. Addition and reduction of amount in output tax for mismatch and other reasons
    This section contains the mismatches in ITC and Tax Liability between the original returns and any changes filed during the current month. This information will be pulled from your GSTR-2.
    • a. ITC claimed on mismatched or duplication of invoices or debit notes
    • b. Tax liability on mismatched credit notes
    • c. Reclaim on rectification of mismatched invoices/Debit Notes
    • id. Reclaim on rectification of mismatch credit note
    • e. Negative tax liability from previous tax periods
    • f. Tax paid on an advance in earlier tax periods and adjusted with a tax on supplies made in the current tax period. 
    • g. Input Tax credit reversal/reclaim
  9. Total tax liability
    This is the section as your tax liability under different tax heads of CGST, SGST & IGST will be calculated here on the GST Portal.

    It will show the following breakup:-

    • A. On outward supplies
    • B. On inward supplies under reverse charge
    • C. On account of ITC reversal or reclaim
    • D. On account of mismatch/ rectification /other reasons
  10. Credit of TDS and TCS
    The details of the TDS and TCS paid by you will be covered under this section. The amounts of TDS/TCS will be deducted from the total liability to arrive at net tax amount you must pay.
  11. Interest liability (Interest as on ...)
    An interest of 18% per annum is applicable in the event of delay of payment. The taxpayer needs to calculate this interest on the amount of outstanding tax to be paid. The time period will be from the next day of filing (20th of the month) to the date of payment.
    Further, an interest of 24% per annum is applicable for the taxpayer who takes undue or excess claim of Input Tax Credit. This section shows the reason and the amount of interest applicable. A division into CGST, SGST, IGST & Cess will be given.
    • Output liability on mismatch
    • ITC claimed on mismatch invoice
    • On account of other ITC reversal
    • Undue excess claims or excess reduction [refer sec 50(3)] 
    • Credit of interest on rectification of mismatch
    • Interest liabilities carry forward.
    • Delay in payment of tax
    • Total interest liability
  12. Late Fee
    Every registered person who fails to furnish the details of outward supplies by due date shall pay a late fee of ₹100/- for every day during which such failure continues subject to maximum of ₹5000/- under CGST Act
    Every registered person who fails to furnish the details of outward supplies by due date shall pay a late fee of ₹100/- for every day during which such failure continues subject to maximum of ₹5000/- under SGST Act/UTGST Act
  13. Interest, Late Fee and any other amount (other than tax) payable and paid
    The details of the amount payable and the amount paid under interest, late fee with the breakup of tax heads except IGST as there is no late fee for IGST will be reflected under this section.
  14. Refund claimed from Electronic cash ledger
    If the tax paid is higher than the actual amount then the difference will be refunded to the taxpayer in this section.
  15. Debit entries in electronic cash/Credit ledger for tax/interest payment [to be populated after payment of tax and submissions of return]
    This section will be automatically filled in when you pay taxes and submit your returns.