Under the Goods and Services Tax (GST) law, every registered person, except certain specified persons, is required to furnish details of inward and outward supplies of goods or services or both. They must also report input tax credit availed, tax payable, and tax paid for each tax period. This information must be filed electronically through the GST portal using Form GSTR 3B. This form is a self-declared consolidated summary return and is submitted monthly or quarterly, depending on the category of the taxpayer. This document provides all relevant legal provisions regarding GSTR 3B, including its filing procedures and compliance requirements.
Understanding Form GSTR 3B
Form GSTR 3B is a simplified return format that enables taxpayers to declare a summary of outward and inward supplies, calculate input tax credit, and discharge GST liabilities. Unlike detailed returns such as GSTR-1, GSTR-3 B requires only summarized information and is intended to streamline compliance for registered persons. The following sections elaborate on the requirements to furnish Form GSTR 3B, the timelines associated with its filing, restrictions applicable under specific circumstances, and associated payment mechanisms.
Requirement to File Form GSTR 3B
The obligation to file Form GSTR 3B is laid out under Section 39(1) of the CGST Act, read with Rule 61(1) of the CGST Rules. It mandates that every registered person must submit details of supplies and tax liability for each month or part thereof. However, the law exempts certain categories from this requirement. These include input service distributors, non-resident taxable persons, composition scheme taxpayers, TDS deductors, TCS collectors, and suppliers of online information and database access or retrieval services to non-taxable persons.
Filing Form GSTR 3B with Nil Transactions
Section 39(8) of the CGST Act mandates that even if a registered person has no transactions during a tax period, they are still required to file Form GSTR 3B. This ensures that every active GST registration remains compliant even during months of no business activity. Filing a nil return affirms that no tax liability arises for that period.
Time Limit for Filing GSTR 3B
Rule 61(1) of the CGST Rules prescribes that Form GSTR 3B must be filed on or before the twentieth day of the month following the relevant tax period. For example, the return for April must be submitted by May 20. The due date for tax payment is also the same. Filing within this timeframe is essential to avoid penalties and interest.
QRMP Scheme and Quarterly GSTR 3B Filing
To reduce the compliance burden for small taxpayers, the government introduced the Quarterly Return Monthly Payment (QRMP) Scheme, effective from January 1, 2021. Taxpayers with an aggregate turnover of up to Rs. 5 crores in the preceding financial year can opt for this scheme. Under QRMP, returns are filed quarterly, but tax must be paid monthly. Taxpayers pay the tax for the first two months of each quarter by depositing an estimated amount in Form GST PMT-06 by the 25th of the following month. The tax liability for the third month of the quarter is discharged through the quarterly GSTR 3B. The due date for filing GSTR 3B in this scheme is either the 22nd or 24th of the month following the quarter, depending on the state in which the taxpayer is registered.
Due Dates Based on Category and Region
For regular taxpayers with turnover above Rs. 5 crores or those not opting for QRMP, the GSTR 3B is due by the 20th of each month. Taxpayers under QRMP in specified states file by the 22nd or 24th of the month following the quarter. The tax for the first two months is to be paid by the 25th of the succeeding month through Form GST PMT-06. The government has categorized states into two groups to determine the applicable due date for quarterly filers.
Commissioner’s Power to Extend Due Dates
Section 39(6) of the CGST Act, along with the proviso to Rule 61(3), empowers the Commissioner to extend the due date for filing Form GSTR 3B and paying taxes through Form GST PMT-06. When such an extension is announced by the State or Union Territory GST Commissioner, it is automatically deemed applicable under the Central GST framework as well. This avoids the need for separate notifications at the central and state levels, simplifying administrative procedures.
Manner of Discharging GST Liability
As per Rule 61(2) of the CGST Rules, the tax, interest, penalty, or any other amount payable under GST must be discharged while filing GSTR 3B. The liability can be paid by debiting the electronic cash ledger or the electronic credit ledger maintained on the GST portal. The exact amount paid is reported in the GSTR 3B itself, making it the final record of tax discharged for that period.
Restrictions on Filing Form GSTR 3B
The GST law imposes certain restrictions on filing GSTR 3B. One significant restriction is that returns for previous tax periods must be filed before filing the current period’s GSTR 3B. Section 39(10) of the CGST Act bars the filing of a return if any previous GSTR 3B remains pending. However, the Finance Act 2022 introduced a provision allowing the government, based on GST Council recommendations, to relax this condition through notification. Such relaxation would apply to specific registered persons or categories under defined conditions.
Requirement to File GSTR 1 Before GSTR 3B
An additional restriction, introduced through the Finance Act 2022 and effective from October 1, 2022, mandates that GSTR 1 for a tax period must be filed before submitting GSTR 3B for that same period. This ensures consistency between outward supply details reported in GSTR 1 and tax liability declared in GSTR 3B. Similar to other restrictions, the government retains the power to exempt certain taxpayers from this rule via notification.
Revision or Rectification of Form GSTR 3B
Under the GST framework, there is no option to revise a GSTR 3B return once it has been filed. However, any omission or incorrect detail discovered after filing can be rectified in subsequent returns as per the provisions of Section 39(9) of the CGST Act. The Finance Act 2022 further clarified these rules. A taxpayer can rectify any error found in a previously filed return if such omission or error is not the result of scrutiny, audit, inspection, or enforcement activity by the tax authorities. The rectification must be made by the earlier of the following two dates: the 30th of November following the end of the relevant financial year or the date of filing the annual return for that financial year. For example, if a taxpayer discovers an error in a return related to the financial year 2023–2024, the rectification must be done by 30th November 2024 or before the filing date of the annual return for 2023–2024, whichever is earlier. These rectifications are to be carried out by adjusting values in the subsequent GSTR 3B returns and paying any tax shortfall along with interest.
Fee for Late Filing of GSTR 3B
The GST law under Section 47 of the CGST Act prescribes a late fee for filing GSTR 3B after its due date. Originally, the late fee was Rs. 200 per day, comprising Rs. 100 under CGST and Rs. 100 under SGST. However, the government has issued relaxations to reduce the burden on taxpayers. The reduced late fee is Rs. 50 per day, with Rs. 25 under CGST and Rs. 25 under SGST. This reduced rate is subject to maximum limits based on the taxpayer’s turnover in the previous financial year. If the turnover was up to Rs. 1.5 crore, the maximum late fee is Rs. 2,000. For turnover between Rs. 1.5 crore and Rs. 5 crore, the cap is Rs. 5,000. If the turnover exceeds Rs. 5 crore, the maximum fee is Rs. 10,000. In case of nil returns where there are no outward or inward supplies or tax liabilities, the late fee is limited to Rs. 20 per day, split equally under CGST and SGST, and is capped at Rs. 500. These provisions aim to encourage timely compliance while offering relief to small and nil filers.
Interest on Delayed Tax Payment
If a registered person does not discharge the tax liability by the due date as specified under the GST law, then interest becomes applicable. As per Section 50 of the CGST Act, interest is levied on the unpaid amount for the period of delay. The interest is calculated from the day after the due date until the date the tax is paid. The applicable rate of interest is 18 percent per annum. This interest must be paid separately and cannot be adjusted against input tax credit. It is mandatory even if the tax has eventually been paid voluntarily and not as a result of departmental proceedings. The objective is to compensate the government for the delay in tax realization and to ensure fiscal discipline among taxpayers.
Recovery of Tax on Outward Supplies Declared Only in GSTR 1
The Finance Act 2021 brought an important clarification regarding the recovery of tax where outward supplies have been reported in GSTR 1 but not in GSTR 3B. This situation leads to a mismatch between the tax declared and the tax paid. An explanation inserted in Section 75(12) of the CGST Act defines self-assessed tax to include any tax payable on outward supplies disclosed in GSTR 1 but not reflected in GSTR 3B. This means that if a taxpayer declares invoices and taxable supplies in GSTR 1 but fails to pay tax on them in GSTR 3B, the unpaid amount qualifies as self-assessed tax. Consequently, the tax authorities can initiate recovery proceedings under Section 79 of the CGST Act for recovery of such self-assessed tax. This amendment strengthens the compliance mechanism by ensuring that declared liabilities are appropriately discharged and discourages under-reporting or omission of tax liability in summary returns.
State-wise Due Dates under the QRMP Scheme
To streamline compliance and avoid system overloads, the government has divided states into two categories for assigning different due dates for filing GSTR 3B under the Quarterly Return Monthly Payment (QRMP) scheme. For taxpayers in states such as Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, and the union territories of Daman and Diu, Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands, and Lakshadweep, the due date for filing quarterly GSTR 3B is the 22nd of the month following the quarter. For taxpayers in Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, and the union territories of Jammu and Kashmir, Ladakh, Chandigarh, and Delhi, the due date is the 24th of the month following the quarter. This classification helps to balance the server load and manage large volumes of return submissions efficiently.
Filing Nil GSTR 3B Through SMS
To ease the compliance process for taxpayers with no business activity in a particular tax period, the government has enabled the facility to file a nil GSTR 3B through SMS. A nil return can be filed if there is no outward supply, no inward supply on which tax is payable under reverse charge, no liability to pay any tax, and no input tax credit claimed or reversed. The taxpayer must ensure that these conditions are met for the relevant period. If eligible, the registered person can send an SMS in the specified format to the designated number from their registered mobile number. Upon successful validation, an acknowledgment message is sent, confirming the filing of the nil return. This feature simplifies the process for small taxpayers and those with irregular business activity by removing the need to log into the GST portal.
Auto-population of GSTR 3B from GSTR 1 and GSTR 2B
To reduce manual errors and improve compliance, the GST system has been progressively enabling auto-population of values in GSTR 3B from GSTR 1 and GSTR 2B. GSTR 1 captures the details of outward supplies, while GSTR 2B is an auto-generated statement of input tax credit. Based on the data filed in these forms, relevant fields in GSTR 3B are pre-filled. Taxpayers are advised to cross-check the values and make corrections, if required, before submission. Although the facility is designed to reduce effort and increase accuracy, the responsibility for correctness of the filed return still lies with the taxpayer. The auto-population is only suggestive and not binding. Discrepancies should be resolved through reconciliation, and any changes made in the auto-filled values should be supported by documentation in case of audit or scrutiny.
Tax Payment Using PMT-06 Under QRMP Scheme
Under the QRMP scheme, taxpayers must make monthly tax payments for the first two months of the quarter using Form GST PMT-06. There are two methods for calculating this payment. Under the fixed sum method, taxpayers can pay thirty-five percent of the tax paid in cash during the previous quarter if the previous return was filed quarterly or the exact tax paid in the last month of the previous quarter if it was filed monthly. Alternatively, under the self-assessment method, taxpayers can estimate their tax liability for the current month and pay accordingly. The tax must be deposited by the 25th of the following month. These payments are adjusted against the quarterly return submitted through GSTR 3B. If the payment exceeds the liability, the excess can be carried forward or claimed as a refund. If it is short, the balance must be paid when filing the quarterly GSTR 3B. This system provides flexibility for taxpayers while ensuring timely revenue flow to the government.
Input Tax Credit Reporting in GSTR 3B
GSTR 3B requires reporting of eligible and ineligible input tax credit under different categories such as import of goods, import of services, and inward supplies liable to reverse charge. The form also requires disclosure of input tax credit reversed on account of non-payment to vendors within the prescribed time and reclaim of previously reversed credit. Accurate reporting of input tax credit is essential to avoid mismatches during reconciliation with GSTR 2B. Any discrepancy between the credit claimed and credit available may lead to notice or demand. Therefore, taxpayers should ensure regular matching of books with GSTR 2B and make necessary adjustments in GSTR 3B. Timely and correct reporting helps in smooth flow of credit and avoids disputes during audits or assessments.
Negative Values in GSTR 3B
While GSTR 3B is a summary return, it permits negative values to be reported under certain heads such as amendments to supplies, reversal of input tax credit, or excess tax paid earlier. Negative reporting is necessary when adjusting values for errors or reversals identified in earlier tax periods. However, care must be taken to ensure that the negative entries are substantiated with proper records and are not used to manipulate liabilities. Excessive use of negative reporting may draw scrutiny from the tax department. The system accepts negative values in permitted fields, and validations are built to avoid incorrect submissions. Proper reconciliation and documentation should support all such entries.
Adjustment of Tax Liability Through Credit and Cash Ledgers
The GST law provides for discharge of tax liability through the electronic credit ledger and the electronic cash ledger. Input tax credit can be used to pay output tax liability but not interest, penalty, or late fees. The electronic cash ledger is used to pay tax as well as other dues. The taxpayer must choose the appropriate ledger while making payments in GSTR 3B. Any payment made is debited from the respective ledger upon submission of the return. If the credit balance is insufficient, the shortfall must be paid in cash before submission. Mismatch in liabilities and payment may result in system errors or notices. Therefore, it is important to ensure correct utilization of available balances while filing GSTR 3B.
Issues in Filing GSTR-3B and Its Legal Validity
Since the GSTR-3B was introduced as a stop-gap arrangement, several issues have emerged. The first issue was the constitutional and legal validity of the form. The second major concern was the inability to revise the form once it was submitted. Furthermore, taxpayers faced difficulties in reconciling the data submitted through GSTR-1, GSTR-2A, and GSTR-3B.
The legality of GSTR-3B came under question because it was not originally prescribed in the CGST Act but rather introduced through Rule 61(5) of the CGST Rules, 2017. Initially, Rule 61(5) read that if GSTR-1 and GSTR-2 are not filed, then GSTR-3B shall be filed instead of GSTR-3. However, this created confusion since GSTR-3B was not statutorily recognized as a return under the CGST Act. The Government later amended Rule 61(5) with retrospective effect from July 1, 2017, to specify that GSTR-3B would be considered as a return under Section 39(1) of the CGST Act. This clarification gave GSTR-3B legal backing, but only after much litigation and representation from taxpayers.
Another issue was the non-revisability of GSTR-3B. Mistakes in reporting data, whether relating to outward or inward supplies or Input Tax Credit (ITC), could not be corrected in the same return. Taxpayers had to adjust any errors in subsequent returns, which led to complications in tax computation and compliance. This issue remains a major concern, particularly for large businesses with high transaction volumes, where human or system errors are not uncommon.
The reconciliation of GSTR-1, GSTR-2A, and GSTR-3B has also posed significant challenges. Since GSTR-2 and GSTR-3 were not operational, taxpayers could not benefit from auto-drafted input tax credits or automated matching. The absence of GSTR-2 forced taxpayers to rely on GSTR-2A (auto-generated based on GSTR-1 filed by suppliers), and this led to disputes regarding mismatched credits. Several notices were issued by the department for differences in ITC claimed in GSTR-3B versus what appeared in GSTR-2A. This was even though GSTR-2A was not a statutory return but merely a dynamic statement.
To address this, Rule 36(4) was introduced, restricting provisional ITC claimed in GSTR-3B. Initially, the rule allowed only 20% of unmatched ITC, which was later reduced to 10% and then 5%. Ultimately, from January 1, 2022, the rule required taxpayers to claim ITC only to the extent it was reflected in GSTR-2B, a static monthly ITC statement introduced to replace GSTR-2A. These changes increased compliance requirements but provided more accuracy in ITC claims.
Penalties, Interest, and Late Fees for GSTR-3B
Failure to file GSTR-3B within the prescribed time results in consequences such as interest, late fees, and penalties. Section 50 of the CGST Act prescribes interest for delayed payment of tax. As per this provision, taxpayers are required to pay interest at 18% per annum for delayed payment of tax. However, interest is payable only on the portion of the tax that is paid by cash and not on the tax offset using ITC, following a retrospective amendment to Section 50(1).
Late fees are levied under Section 47 of the CGST Act. The fee is Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST) for delay in filing GSTR-3B. For returns with no tax liability, the late fee is reduced to Rs. 20 per day (Rs. 10 CGST + Rs. 10 SGST). The maximum late fee, however, is capped at Rs. 5,000 under each Act. From time to time, the Government has provided relief in late fees through notifications, particularly during the COVID-19 pandemic.
Non-filing of GSTR-3B for a continuous period can lead to cancellation of GST registration. Moreover, non-filing restricts the taxpayer from filing future returns, as the portal restricts sequential filing. Hence, a return for a tax period cannot be filed if the returns for the previous tax period(s) are not filed. This system ensures that taxpayers remain compliant on an ongoing basis.
Practical Considerations for Taxpayers
Given the importance and non-revisability of GSTR-3B, taxpayers must maintain proper documentation and reconciliation mechanisms. Reconciliation of books with GSTR-1, GSTR-2B, and GSTR-3B is crucial for accurate tax filing and ITC claim. Businesses should adopt GST-compliant accounting software or ERPs that can provide monthly reconciliation reports. This minimizes human errors and supports timely compliance.
Due dates must be closely monitored. The Government announces due dates through notifications and press releases, and they may vary depending on the turnover and location of the taxpayer. It is advisable to set internal reminders and review compliance dashboards on the GST portal. Businesses should ensure adequate internal controls for invoice processing, ITC verification, and tax payments to avoid interest or late fee liabilities.
Professional advice or outsourcing to tax consultants may be beneficial for small and medium businesses lacking internal tax expertise. Consultants help in return preparation, reconciliation, audit readiness, and responding to GST department notices or queries.
Conclusion
GSTR-3B is a pivotal return form under the GST regime, acting as a self-declared summary return for reporting GST liabilities and claiming input tax credit. It serves as the foundation for timely tax payments and ensures smooth GST compliance for registered taxpayers. The structured and simplified nature of Form GSTR-3B allows businesses to comply without waiting for supplier invoice matching or final reconciliations. However, this ease of filing comes with a responsibility to furnish accurate details and meet the due dates, which vary depending on turnover and state classification.
Non-compliance in filing GSTR-3B can lead to interest, penalties, and disruptions in ITC claims, making it critical for businesses to maintain discipline in monthly return submissions. The form’s link with other GST returns, particularly GSTR-1 and GSTR-2A/2B, also requires careful reconciliation to avoid mismatches and tax credit denials.
Recent legal interpretations and amendments further clarify the significance of GSTR-3B as a return under the law, reinforcing the taxpayer’s obligation to maintain precision and promptness. With evolving compliance mechanisms such as auto-populated data, e-invoicing, and integration of GSTN systems, the role of GSTR-3B continues to evolve but remains central to India’s GST compliance framework. Therefore, businesses must invest in robust accounting systems, regular reconciliations, and proper understanding of applicable provisions to avoid risks and maintain compliance integrity under GST.