What is GSTR-3B? Know The Penalty For Not Filing GSTR-3B

What is GSTR-3B?

GSTR-3B is a simple form that summarizes a taxpayer’s returns every month. As a taxpayer, you will need to fill in the details and submit the form on a monthly basis all along the nine months starting from July 2019. GSTR-3B does not require invoice level information. It just requires accumulating and listing the total values of sales and purchases for your business.

As a taxpayer,

• You need to file separate GSTR-3B for each GSTIN
• You cannot revise GSTR-3B
• Tax liable for GSTR-3B must be paid by the last date of the month in which you are filing GSTR-3B

Who needs to file GSTR-3B?

GSTR-3B must be filed by every taxpayer registered under the GST regime. Even if you have nil or less significant transaction for a specific month, you need to file GSTR-3B at regular intervals. In case you are a composition dealer, an input service distributor, a supplier of online information & database access or retrieval services, or a non-resident taxable Indian, you need not file GSTR-3B.

What is the penalty for not filing GSTR-3B or filing it late?

It is mandatory to file GSTR-3B even if you have nil transactions. If you delay the submission, you will have to pay late fees as follows –

• INR 50 per day of delay; if you have transactions to account for in your returns
• INR 20 per day of delay; if you are filing nil GSTR-3B
• 18% interest per annum on your dues; if you fail to pay the GST amount by the due date
• 100% penalty on your tax amount; if you miss the GST payments deliberately

Why comparing GSTR-3B with GSTR-2A and GSTR-1 is essential?

Reconciliation of GSTR-2A with GSTR-3B is important to:

• Avoid notice from the GST department in case of any discrepancy in the input tax credit claims in GSTR-3B
• Get to know if you miss any input tax credit
• Notify the supplier in case he failed to upload the invoice details on GSTR-1

Reconciliation of GSTR-1 with GSTR-3B is important to:

• Eliminate any interest or penalties levied due to short payment of tax
• Get to know in case you miss any invoice or have duplicate invoices
• Let the recipient claim precise input tax credit depending on GSTR-2A

Frequently Asked Questions about GSTR-3B