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Published on:
February 23, 2023
By
Prerna

Major Changes in GSTR 3B Reporting and Filing

The Goods and Services Tax (GST) was introduced with a purpose to eliminate the cascading effect of taxes and to bring in transparency in indirect taxation. To comply with this tax, every registered taxpayer has to file a myriad of returns and forms. The GSTR 3B form is one such return that is filed every month by taxpayers.

The GSTR 3B is a summary return that needs to be filed by all registered taxpayers, including those under the composition scheme. The form captures details of inward and outward supplies, input tax credit, and tax liability payable. It is a self-declaration form that a taxpayer has to file every month.

In this article, we will discuss the major changes that have been introduced in GSTR 3B reporting and filing.

Summary of the changes

1. The format of the GSTR 3B form has been changed to include additional fields.

2. The due date for filing GSTR 3B has been extended for certain taxpayers.

3. The late fee for filing GSTR 3B has been reduced for small taxpayers.

4. The input tax credit (ITC) claimed in GSTR 3B must match with the ITC claimed in GSTR 2A.

5. A QR code will be generated on the GSTR 3B form for taxpayers having aggregate turnover of more than Rs. 5 crores in the previous financial year.

Changes in GSTR 3B form

The GSTR 3B form has been revised to include additional fields. These fields capture details of inward supplies received from registered and unregistered persons under reverse charge, and inward supplies received from composition taxpayers. The form now also includes a separate column for tax liability payable under reverse charge.

The revised form also captures details of supplies made to composition taxpayers, supplies made through e-commerce operators, and supplies made to registered persons under reverse charge. The taxpayer is required to provide HSN-wise summary of outward supplies made to registered persons having aggregate turnover up to Rs. 5 crores. The taxpayer is also required to provide details of credit notes and debit notes issued during the month.

Extension of due date

The due date for filing GSTR 3B has been extended for certain taxpayers. The due date for filing GSTR 3B for the months of April and May 2021 has been extended till 20th June 2021 for taxpayers having an aggregate turnover of up to Rs. 5 crores in the previous financial year. For taxpayers having an aggregate turnover of more than Rs. 5 crores in the previous financial year, the due date for filing GSTR 3B for the month of May 2021 has been extended till 26th June 2021.

The due date for filing GSTR 3B for the month of June 2021 has been extended till 5th July 2021 for all taxpayers.

Reduction in late fee

The late fee for filing GSTR 3B has been reduced for small taxpayers. For taxpayers having an aggregate turnover of up to Rs. 1.5 crores in the previous financial year, the late fee for filing GSTR 3B for the months of April and May 2021 has been reduced to Rs. 500 per return.

Matching of ITC claimed in GSTR 3B with ITC claimed in GSTR 2A

One of the significant changes that have been introduced is the matching of input tax credit (ITC) claimed in GSTR 3B with ITC claimed in GSTR 2A. The ITC claimed in GSTR 3B of a taxpayer must match with the ITC claimed in GSTR 2A, which is the auto-populated return containing details of inward supplies made available to taxpayers by the GST Network (GSTN).

If there is a difference in the ITC claimed in GSTR 3B and ITC claimed in GSTR 2A, the taxpayer must either reverse the excess claimed ITC or follow up with the supplier for proper filing of returns. Any difference in the ITC claimed in GSTR 3B and ITC claimed in GSTR 2A will be communicated to the taxpayer through the GST portal.

QR code for taxpayers having aggregate turnover of more than Rs. 5 crores

A QR code will be generated on the GSTR 3B form for taxpayers having an aggregate turnover of more than Rs. 5 crores in the previous financial year. The QR code will contain details of the taxpayer as well as the summary of the return filed. The QR code will facilitate the verification of the return details and will be available for download on the GST portal.

Conclusion

The changes introduced in GSTR 3B reporting and filing are aimed at ensuring compliance and transparency in the GST regime. Taxpayers are required to stay updated with the latest changes and adhere to the revised norms while filing their returns. The extension of the due date, reduction in the late fee, and the introduction of the QR code are steps taken by the government to ease the compliance burden on small taxpayers and to encourage timely filing of returns.

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