Form GSTR-3B Return Filing Procedure for Indian Small and Medium Businesses and Startups

As a small or medium business owner, filing taxes can be a daunting task. With complex procedures and a multitude of forms to fill out, it can often lead to confusion and errors. One such form is the Form GSTR-3B, which is a monthly return that has to be filed by all businesses registered under the Goods and Services Tax (GST) regime. In this article, we will break down the Form GSTR-3B return filing procedure for Indian SMEs and startups.

What is Form GSTR-3B?

GSTR-3B is a monthly self-declaration that has to be filed by all businesses registered under GST. It is separate from the regular GSTR-1 and GSTR-2 returns that have to be filed on a monthly or quarterly basis. The GSTR-3B is a summary of all the sales and purchases made during the month, along with the applicable taxes. It is a simplified form that was introduced by the government to make the return filing process easier for businesses.

Who has to file Form GSTR-3B?

All businesses registered under GST have to file the Form GSTR-3B return. This includes small and medium businesses, startups, and even large corporations. The only exception is for businesses that are registered under the Composition Scheme, as they have to file a different form.

When do you have to file Form GSTR-3B?

The Form GSTR-3B return has to be filed on a monthly basis. The due date for filing the return is the 20th of the following month. For example, the return for the month of July has to be filed by the 20th of August. It is important to note that the return has to be filed even if there are no sales or purchases made during the month.

What are the details required to file Form GSTR-3B?

The following details are required to file the Form GSTR-3B return:

GSTIN (Goods and Services Tax Identification Number)
Legal name of the registered person
Details of the supplies made and received during the month
Details of the tax paid on supplies made and received during the month
Input tax credit (ITC) availed
ITC reversed
Net tax payable

What is the process for filing Form GSTR-3B?

The process for filing the Form GSTR-3B return is as follows:

Log in to the GST portal using your GSTIN and password
Click on the ‘Returns Dashboard’ tab
Select the financial year and the month for which you want to file the return
Click on the ‘Prepare Online’ button
Fill in the details required in the return
Click on the ‘Save’ button to save the return
Click on the ‘Submit’ button to file the return

What are the consequences of not filing Form GSTR-3B?

Not filing the Form GSTR-3B return can result in penalties and fines. The late fee for not filing the return on time is Rs. 50 per day (Rs. 20 for businesses with nil tax liability). In addition, interest is charged on the outstanding tax amount at a rate of 18% per annum. Non-compliance can also lead to the cancellation of the GST registration.

Conclusion

The Form GSTR-3B return filing procedure can seem complex at first, but it is an essential part of the GST regime for businesses. By understanding the details required and the process for filing the return, businesses can ensure compliance and avoid penalties. It is important to file the return on time to avoid late fees and interest charges. With the simplified form and the ease of online filing, businesses can now handle their taxes with greater ease and efficiency.