GSTR 3B Matching

GSTR 3B is a simple return form introduced by the Government. A separate GSTR 3B form has to be filed for each GSTIN. GSTR 3B form does not require invoice level information. It only requires total values for each field, like a summary, for the month for which filing is done.

The Goods and Service Tax mandates filing of GSTR 3B return even by those taxpayers with nil returns. It is a monthly self-declaration form that has to be filed by all taxpayers irrespective of the returns.

The details that have to be furnished in the form include:

• Details of sales and purchase made by the registered taxpayer.
• Liable Input Tax Credit
• Liable Tax
• Tax Paid

1. GSTIN : This is a PAN India based 15 digit Goods and Services Taxpayer Identification Number (GSTIN) for each taxpayer. This column will be auto filled.
2. Name of the registered person : It will be auto filled at the time of logging into the common GST Portal. Trade Name, if any, should be separately provided.
3. Details of Outward supplies and inward supplies liable to reverse charge (Part A) : Here you need to capture the total taxable value (both intrastate and interstate) along with the total tax (IGST, CGST, SGST/UTGST) as applicable:
   • Outward Taxable Supplies other Zero Rate, Nil Rate and Exempted
   • Outward Taxable Supplies (Zero Rated)
   • Outward Supplies towards Nil Rated and Exempted
   • Inward Supplies liable to be paid on reverse charge basis
   • Non GST Outward Supplies

   Details of Inter‐State supplies made to unregistered persons, composition dealer, and UIN holders (Part B) : This table shows the bifurcation of the interstate outward supplies made to Unregistered Persons, Composition Dealers, and UIN Holders. These details need to be captured State‐wise/ Union‐Territory‐wise total with taxable value and total IGST levied on these supplies.

4. Details of eligible Input Tax Credit : Here in this table the summary of your eligible ITC available and the ITC reversals made by you to arrive at the Net ITC is captured.
   • ITC Availability (whether in Full or Part): Mention the break‐up of inward supplies on which ITC is availed. The following are the details you need to capture:
     • Import of Goods : The Tax credit of IGST paid on import of goods.
     • Import of Service : The Tax credit of IGST paid on import of services.
   • Inward supplies liable to reverse charge: Mention the GST paid on inward supplies which are liable for a reverse charge as, sponsorship services, and purchase from URD etc. other than import of goods or services. To know more, read inward supplies liable to reverse the charge.
     • Inward Supplies from ISD : Input tax credit received from Input Service Distributor (ISD).
     • All other ITC: Apart from above, ITC of other inward supplies has to be captured here.
   • Details of Input Tax credit to be reversed : Mention the ITC reversible on the usage of inputs/input services/capital goods used for the non‐business purpose, or partly used for exempt supplies. Also, if the depreciation is claimed on tax component of capital goods, and plant & machinery, then also the ITC will not be allowed.
   • The ITC available as reported when reduced by the amount of ITC to be revered as reported under this table, the resultant balance will be called your eligible ITC.
   • Details of Ineligible ITC : GST paid on inward supplies listed in the negative list is not eligible for Input Tax Credit (ITC). The details of GST paid on such supplies are recorded in this table. To know more, see the list of supplies ineligible for ITCIT
5. Details of exempt, nil‐rated and non‐GST inward supplies : Here you have been asked to give away the value of inward supplies pertaining to supply transactions with suppliers under composition scheme, nil rated and exempt supplies and Non GST supplies made during the tax period (for both inter state and intra state supplies carried out by you)
6. Payment of tax : In here you are required to declare the self-ascertained tax payable by you. This is based on the details of outward supplies and inwards supplies liable to be paid on reverse charge captured in Table No. 3 The tax-wise break-up of payment of tax by way of utilization of ITC and cash deposit needs to be provided.
7. TDS/TCS Credit : Here you are required to capture the details of TDS (Tax withheld by the Government establishment) and TCS (Tax withheld by E-commerce operator). However, these provisions are deferred from initial rollout of GST. Accordingly, TDS and TCS is not applicable till it is notified further.

Mistakes in GSTR 3B could be of following types which can be reconciled or rectified in the following manner

1. In cases of under reporting of liability, and where the return has been filed –
   • Liability may be added in the return of subsequent month(s) after payment of interest.
   • Where in if such liability was not reported in FORM GSTR 1 of the month/quarter, then such liability may be declared in the subsequent month's/quarter's FORM GSTR-1 in which payment was made.

1. In cases of over reporting of liability, and where return has been filed –
   • Liability may be adjusted in return of subsequent month(s) or refund may be claimed where adjustment is not feasible.
   • If such liability was over reported in the month's / quarter's FORM GSTR 1 also, then such liability may be amended through amendments under Table 9 of FORM GSTR 1

1. Instances of incorrect reporting of liability, and findings after filing of return –
   • Unreported liability may be added in the next month's return with interest, if applicable.
   • Accommodation may be made in return of subsequent month (s) or refund may be claimed where adjustment is not feasible.

1. In cases of under - reporting of ITC, and where the return has been filed –
   • Input tax credit which was not reported may be availed while filing return for subsequent month (s).
   • No action required in GSTR 1.

1. In cases of over – reporting of ITC, and where the return has been filed –
   • Pay (through cash) / Reverse such over reported input tax credit with interest in return of subsequent month (s).
   • No action required in GSTR 1

1. Instances of incorrect reporting of input tax credit, and findings after filing of returns –
   • Pay (through cash) / Reverse any wrongly reported input tax credit in return of subsequent month(s).
   • Any under reported input tax credit, the same may be availed in return of subsequent month(s).
   • No action required in GSTR 1.