The discussion of GSTR-1 which contains details of all sales and GSTR-2 which the details of purchases is already done. Now we will discuss GSTR-3 which will contain the monthly summary of sales and purchases along with the tax liability
What is GSTR-3?
GSTR-3 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. 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.
Key Features of GSTR-3
- GSTR-3 capture the aggregate level outward and inward supply information which will be auto populated through GSTR-1 and GSTR-2.
- Information would be updated in real time about Input Tax Credit ledger, Cash ledger and Liability ledger. Details of payment of tax and ITC under various tax heads of CGST, SGST, IGST and Cess would be auto-populated from the debit entry in credit/cash ledger, irrespective of mode of filing return.
- Taxpayer will also have the option of claiming the excess payment of tax as refund for which there will be a field in this return. The return would also have a field to enable the taxpayer to carry forward the excess ITC balance.
As per 22nd GST Council meeting of 6th October 2017 which is the latest update
- Businesses with annual turnover up to 1.5 crores will submit quarterly returns. Taxes will be paid quarterly.
- GSTR 1,2,3 July, August, September 2017 returns will be submitted as per old due dates. Due dates of Aug & Sep will be declared later.
- Switch over to quarterly will happen from Oct-Dec 2017 cycle.
When to fill GSTR-3?
The due date of filling GSTR-3 is 20th of every month as per the latest update but is subject to change in future.
There are 2 parts of GSTR-3. Part A is auto-populated from GSTR-1, GSTR-1A & GSTR-2 and Part B must be filled up manually.
- GSTIN– Each taxpayer is allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). A format of the GSTIN has been shown in the image below. GSTIN of the taxpayer will be auto-populated at the time of return filing.
- Name of the taxable person– The name of the taxpayer, will also be auto-populated at the time of logging into the common GST Portal.
- Address– Here the business address of the registered taxable person will get auto-populated here.
- Period: (Month -Year)-A taxable person is required to select from a drop down the relevant month and the year respectively for which GSTR-3 is being filed.
- Turnover Details– This heading includes consolidated turnover of all types of supplies. Gross turnover needs to be bifurcated between:
- The taxable turnover
- The export turnover
- Nil rated and the exempted turnover
- Non-GST turnover
- Total turnover ( sum of above all)
- Outward Supplies-All the particulars filed under GSTR-1 will flow under this heading. GSTR-1 requires an assessee to furnish the details of the outward supplies. All such the information gets auto-populated under the respective heading. These subheadings have been provided below:
- Inter-state supplies to the registered taxable person
- Intra-state supplies to the registered taxable person
- Inter-state supplies to the consumers
- Intra-state supplies to the consumers
- Exports (including deemed exports)
- Revision of supply invoices / debit notes / credit notes
- The total tax liability on the outward supplies
- Inward Supplies-Similar to the outward supply, every registered taxpayer is required to furnish details of the inward supply in his monthly GSTR-2. All the information filed under GSTR-2 will flow into this heading. Below are the subheadings where the information will get auto-populated:
- Inter-state supplies received
- Intra-state supplies received
- Revision of purchase of invoices / debit notes / credit notes
- The total tax liability on the inward supplies on reverse charge
- ITC reversal
- Total Tax Liability for the month-After all the outward supplies and the inward supplies are declared, GSTN portal will auto-calculate the tax liability under this heading. Here the taxpayer will determine his tax liability from dealing in both goods and provision of services. Similarly, a separate value will be shown for CGST, SGST, and IGST respectively.
- TDS credit received during the month– Any tax credit by way of tax deducted at the source will auto-populate here from taxpayer’s GSTR-2.
- TCS credit received during the month– Similar to the TDS above, in case of the E-commerce marketplace sellers, any amount of TCS collected by the E-commerce operator will be available here. This information will again be flowing from the GSTR-2 filed for the same period.
- ITC received during the month– The total amount of eligible input tax credit available for adjustment will get auto-computed here.
PART-B (to be filled manually)
- Tax, Interest, Late Fee and Penalty Paid– This heading will take the input from all the headings given above and will regulate the final GST liability. Separate tax liability will be shown against the IGST, CGST, and SGST. At this juncture the taxpayer will have the option to debit cash ledger/ credit ledger against the liability outstanding.
- Refunds Claimed from Cash Ledger– The input credit amount in excess of the tax liability will flow to this heading. The taxpayer can claim a refund of the amount showing in this header.
After all the particulars are furnished properly, the taxpayer is then required to sign digitally either through a digital signature certificate (DSC) or Aadhar based signature verification to authenticate the return.