Businesses need to submit GSTR-3B by August 20, this is what the form is

Key Highlights:

• Facility to file GSTR-3B opened on August 5 and will close on August 20
• GSTR-3B needs to be filed for the month of July
• Form GSTR-3B needs to be filed by a taxable person for submitting the provisional assessment of the tax liability. 

With Goods and  Service Tax (GST) coming into effect, the traders need to start filing GST returns now. The first tax return under the new tax regime opened from Saturday and can be filed till August 20. 

Recently, Goods and Service Tax Network (GSTN) Chairman Navin Kumar told PTI that to make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout. 

So, the GST returns for July and August will be filed on the GSTN portal by filling up GSTR 3B form.

"We will start the facility of filing interim return form GSTR 3B by August 5 and any registered entity who has transacted business in July will have to file the return by August 20," Kumar had said. 

Which means, just 13 days left to file GSTR-3B for the month of July.

If you are thinking what is GSTR-3B, then here it is:

GSTR 3B is a simpler return that businesses need to file in the first two months of GST (July and August, 2017) instead of the normal returns – GSTR 1, 2 and 3.

Form GSTR-3B needs to be filed by a taxable person under GST for submitting the provisional assessment of the tax liability. Each manufacturer, trader, service provider who is liable to register under GST has to complete a self-assessment of his taxes and has to file form GSTR-3B.

Under GST, a registered dealer is required to file three returns every month and one annual return. So, in total 37 returns have to be filed every year. 

Since filling up these complex forms require a great amount of time and understanding, the government has postponed the filing of GSTR 1,2 & 3 for July and August, 2017.

In the place of these monthly returns, GSTR 3B has been introduced.

What does GSTR-3B includes?

A full detail of the tax under different heads CGST, SGST, UTGST, IGST and cess for the transactions which were taxable due to reverse charge. Tax applicable on following transactions has to be mentioned:

• Sale of goods/ providing services which are not zero rated, nil rated or exempted.
• Sale of goods/ providing services which are zero rated
• Sale of nil rated or exempted goods or service provided which are nil rated or exempted.
• Purchase of goods or services received on which reverse charge is applicable.
• Sale of products or services provided which are not covered under GST.

Sections under GSTR 3B

• Outward Supplies: Details of outward supplies and inward supplies liable to reverse charge. And details of inter-State supplies made to unregistered persons, composition dealer and UIN holders
• Input Tax Credit: Details of eligible ITC
• Purchases: Details of exempt, nil-rated and non-GST inward supplies
• Payment of tax: Outward Tax Liability (minus) Input Tax Credit
• TDS/TCS Credit: Sections on TDS and TCS have not been notified till date.

From September 2017, every taxpayer has to strictly follow the regular provisions of filing GSTR 1, 2 and 3 on 10th, 15th and 20th of the next month respectively.

Hence, considering this will be first time GST return will be filed, it is advisable to start filing early so that you can get time to rectify error if any. 

ALSO READ

27 lakh biz yet to complete GST registration process: GSTN
Are you ready to file 37 tax returns under GST regime? All your questions answered
GST rollout: All you need to know about monthly, quarterly, annually tax return filing