GSTR-3 is a crucial GST return that every business registered under the Goods and Services Tax (GST) regime must file. It consolidates all the details of sales, purchases, and input tax credits claimed by a taxpayer in a particular tax period. In this article, we will discuss the key features of GSTR-3, its due date, and the consequences of non-filing or late filing of the return.
What is GSTR-3?
GSTR-3 is a monthly return that summarizes all the transactions made by a registered taxpayer in a given tax period. It includes details of all inward and outward supplies, input tax credit claimed, tax liability, and payment of tax. It is an auto-populated return that is generated based on the information furnished in GSTR-1, GSTR-2A, and GSTR-3B.
The due date for filing GSTR-3
The due date for filing GSTR-3 is the 20th of the month following the tax period for which the return is being filed. For instance, the GSTR-3 for the month of January 2023 is due on the 20th of February 2023. However, it is important to note that GSTR-3 has been suspended since 2017 and is not currently required to be filed by taxpayers.
Consequences of non-filing or late-filing of GSTR-3: Non-filing or late-filing of GSTR-3 can attract penalties and interest under the GST law. As per the law, a late fee of Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST) is applicable for each day of delay in filing the return. The maximum late fee that can be charged is capped at Rs. 5,000. In addition to the late fee, interest at the rate of 18% per annum is charged on the outstanding tax liability from the due date of filing until the actual date of payment.
Components of GSTR-3:
- Outward supplies: This section includes the details of all the supplies made by the registered taxpayer during the month. The information is auto-populated from GSTR-1 filed by the supplier.
- Inward supplies: This section includes the details of all the supplies received by the registered taxpayer during the month. The information is auto-populated from GSTR-2 filed by the recipient.
- Input tax credit (ITC): This section includes the details of ITC availed by the registered taxpayer during the month. It includes ITC availed on inward supplies and ITC reversed due to non-payment of invoices.
- Tax payable and paid: This section includes the details of tax liability, tax paid, and the balance tax payable. It also includes details of interest and late fees, if any.
- Refund claimed: This section includes the details of refund claimed, if any.
Importance of GSTR-3
GSTR-3 is a critical return as it provides the final computation of tax liability for a registered taxpayer. It helps in reconciling the tax liability as declared in GSTR-1 and GSTR-2 and ensures that the input tax credit claimed by the taxpayer is correctly reflected. It also helps in identifying any errors or discrepancies in the outward and inward supplies declared by the supplier and recipient, respectively.
Penalties for non-filing or late filing of GSTR-3
The penalty for non-filing of GSTR-3 is INR 200 per day, subject to a maximum of 0.25% of the taxpayer’s turnover in the state or union territory. In case of late filing, interest will be charged at the rate of 18% per annum on the amount of tax payable. Late fees for filing GSTR-3 after the due date is INR 50 per day for CGST and INR 50 per day for SGST, subject to a maximum of INR 5,000.
Other GSTR List You Should Know:
Conclusion:
In conclusion, GSTR-3 is an important GST return that businesses must file to comply with the GST law. It helps taxpayers reconcile their sales and purchase data and ensure that they have correctly claimed input tax credit. While GSTR-3 is currently not required to be filed by taxpayers, it is important to stay updated on the latest GST compliance requirements and file all returns on time to avoid penalties and interest.
Frequently asked questions (FAQs) about GSTR-3
Q.1) What is GSTR-3?
GSTR-3 is a monthly return that summarizes the total outward supplies, inward supplies, tax liability, and input tax credit availed by a registered taxpayer. It is an auto-populated return that is generated based on the details furnished in GSTR-1 and GSTR-2.
Q.2) Who needs to file GSTR-3?
Every registered taxpayer under GST is required to file GSTR-3. However, taxpayers who have opted for the composition scheme are not required to file this return.
Q.3) What is the due date for filing GSTR-3?
The due date to file GSTR-3 is the 20th of the subsequent month for which the return is being filed.
Q.4) What are the components of GSTR-3?
The components of GSTR-3 are outward supplies, inward supplies, input tax credit (ITC), tax payable and paid, and refund claimed.
Q.5) Can I make changes to GSTR-3 after filing?
No, once GSTR-3 is filed, it cannot be revised or amended. Any errors or discrepancies can be corrected in the subsequent month’s return.
Q.6) What is the penalty for late filing of GSTR-3?
The penalty for late filing of GSTR-3 is INR 200 per day, subject to a maximum of 0.25% of the taxpayer’s turnover in the state or union territory.
Q.7) What happens if I don’t file GSTR-3?
Non-filing of GSTR-3 can attract a penalty of INR 200 per day, subject to a maximum of 0.25% of the taxpayer’s turnover in the state or union territory. It can also lead to suspension or cancellation of the taxpayer’s GST registration.
Q.8) What is the format for filing GSTR-3?
GSTR-3 is an auto-populated return that is generated based on the details furnished in GSTR-1 and GSTR-2. However, taxpayers can preview and download the return in PDF format before filing it.
Q.9) Do I need to file GSTR-3 even if there are no transactions during the month? Yes, every registered taxpayer under GST is required to file GSTR-3 even if there are no transactions during the month. It is called a Nil return.
Q.10) Is it mandatory to file GSTR-3 online? Yes, GSTR-3 must be filed online through the GST portal. There is no provision for filing it offline.
