GSTR 3B – Correction & Matching with GSTR 1, GSTR 2 & GSTR 3
Latest Update for Form GSTR 3B – As communicated by the GST Council, GSTR – 3B had been extended till the month of June 2018, the last date for the same being 20th of the next month for all taxpayers. From time to time, the Council has extended the dates- for instance, when the last date for Form GSTR – 3B for July 2018 was extended to 24th August, 2018.
As per the recently issued notifications, the due dates were extended for filing Form GSTR 3B (July 2017 to November 2018), only for newly migrated taxpayers. The last date for the same is now 31st December, 2018. However, the dates remain unchanged for other taxpayers.
The deadline for filing the first GST return - Form GSTR 3B ended on August 25th and August 28th 2017. Yet, there were many businesses which are still in the process of filing GSTR-3B. Since this is the first GST return , the GST Council has decided to waive off the late fee for all businesses who could not file GSTR 3B for the month of July 2017, within the stipulated time. However, for late payment, interest at a maximum of 18% will be levied.
As GSTR 3B is the first return in the GST regime, some mistakes or errors are expected in its filing process. Thus, the question naturally arises – how to correct GSTR 3B. Unfortunately, there is no concept of revised returns in GST - whether for GSTR 3B or for the regular returns which will start from September onwards. This means, once submitted, one cannot modify or change details in GSTR 3B. As long as the form is in “Save” mode (before submitting), details can be modified and corrected, but not after submission.
How to correct GSTR 3B?
Outward supplies which may have been under reported or reported in excess in GSTR 3B, need to be corrected while filing GSTR 1. Corrections in eligible ITC, tax liability of inward supplies liable for reverse charge, or details of inward supplies submitted in GSTR 3B, need to be reported while filing GSTR 2. Based on the correct details declared in the GSTR 1 and GSTR 2 , the revised tax liability and eligible ITC will reflect in one’s e-ledger. Also, these details will get auto-populated in the GSTR 3 generated.
How to match GSTR 3B with GSTR 1, GSTR 2 & GSTR 3?
One of the key aspects to keep in mind here is that GSTR 3B is a summary level return, which means that the summary declared in GSTR 3B should match with the details furnished in the regular returns i.e. GSTR 1, GSTR 2 and GSTR 3 . This also means, that the tax paid on the basis of GSTR 3B should match with the tax liability generated in the GSTR 3 .
Match GSTR 3B with GSTR 1 and GSTR 2
- All outward supplies summary declared in Table 3 of GSTR 3B, except the inward supplies liable for reverse charge, should be matched with the invoice-wise details of outward supplies declared in GSTR 1. The first level match of GSTR 3B with GSTR 1 is crucial.
- ITC details declared in Table 4 of GSTR 3B, including the tax liability on inward supplies liable for reverse charge should be matched with GSTR 2.
Match GSTR 3B with GSTR 3
- Based on the outward supplies submitted in GSTR 1 and inward supplies submitted in GSTR 2, the revised tax liability and eligible ITC will be auto populated in Part-B of GSTR 3.
- The tax already paid through the electronic cash ledger and electronic credit ledger while filing GSTR 3B will be auto captured by the system. Ideally, if there is no difference between the details of output tax liability and eligible ITC furnished in GSTR 3B and the details furnished in GSTR 1 and GSTR 2, the amount of tax payable in Part B of GSTR 3 and tax paid in GSTR 3B will be the same. In such a case, one can sign and submit GSTR 3 without any additional payment of tax.
The provisions laid down by the GST Council, thus allows businesses for matching GSTR 3B with GSTR 1, GSTR 2 and GSTR 3, and in case of any differences, the requisite corrections can be done seamlessly.