Understanding the New Disclosures in GSTR-3B: A Comprehensive Guide

As a small or medium business owner or a startup founder in India, you must be well-versed with the Goods and Services Tax (GST) and its impact on your business. One of the most important GST compliance requirements for businesses is filing the GSTR-3B form every month. Recently, the Central Board of Indirect Taxes and Customs (CBIC) introduced some new disclosures in the GSTR-3B form. In this article, we will take a detailed look at these new disclosures and what they mean for your business.

What is GSTR-3B?

GSTR-3B is a monthly return that must be filed by all GST-registered businesses in India. It is a summary of all the sales, purchases, and input tax credit (ITC) claimed by the business during the month. The due date for filing GSTR-3B is the 20th of the following month.

As per the GST law, businesses that do not file their GSTR-3B returns on time are liable to pay late filing fees and interest.

What are the new disclosures in GSTR-3B?

The CBIC has introduced two new disclosures in the GSTR-3B form. These disclosures are required to be filled in every month:

Details of outward supplies made to unregistered persons, composition taxpayers, and UIN holders
Details of the bifurcation of the ITC claimed between inputs, input services, and capital goods

What do these disclosures mean for your business?

Details of outward supplies made to unregistered persons, composition taxpayers, and UIN holders

Prior to the introduction of this disclosure, businesses were only required to report the details of outward supplies made to registered persons in their GSTR-3B returns. However, with the new disclosure, businesses are also required to report the details of outward supplies made to unregistered persons, composition taxpayers, and persons holding a Unique Identification Number (UIN).

This new disclosure is aimed at improving the transparency and compliance of GST. It will help the government in tracking down businesses that are making supplies to unregistered persons or composition taxpayers and ensure that they are paying the applicable taxes.

Details of the bifurcation of the ITC claimed between inputs, input services, and capital goods

Previously, businesses were only required to provide the total amount of ITC claimed in their GSTR-3B returns. However, with the new disclosure, businesses are required to bifurcate the ITC claimed between inputs, input services, and capital goods.

This new disclosure is aimed at improving the accuracy of the ITC claimed by businesses. It will help the government in identifying cases of incorrect or excessive ITC claims and take appropriate action.

Conclusion

The new disclosures in the GSTR-3B form are aimed at improving transparency and compliance in GST. As a business owner, it is important for you to understand these new disclosures and ensure that you are filling them correctly every month. Failure to do so can result in penalties and interest.

If you need help with GST compliance or filing your GSTR-3B returns, you can reach out to professional service providers who specialize in GST compliance for small and medium businesses.