How to file Form GSTR-3B | A Step-by-Step Guide

The Form GSTR-3B is required to be furnished[ Rule 61(1) of the CGST Rules] electronically over the GSTN portal. The provisions relating to manner of furnishing including the instructions relating to furnishing the various fields and sections of Form GSTR-3B are discussed in the below-mentioned paragraphs.

Step 1- Manner of furnishing details of outward supply

This table contains the details of outward supplies and inward supplies liable to reverse charge. This shall not include the details of outward supplies that are liable to tax under section 9(5) of the CGST Act[ Notification No. 14/2022 of the CGST Act, 2017 Dated 05-07-2022 read with Para 11 of Notification No. 14/2022 Dated 05-07-2022]. The various fields provided in this table of Form GSTR-3B that are required to be furnished by the registered taxpayer are discussed separately in the below mentioned paragraphs.

(i) Outward taxable supplies (other than zero-rated, nil rated and exempt)

The amount required to be reported in the given field is computed in the manner computed below:

The taxpayer is required to report all such details except zero-rated, nil rated and exempt supplies in a consolidated manner in this field. This field is auto-populated based on values provided in Form GSTR-1. The taxpayer can edit such auto-populated details. This shall not include the details of outward supplies that are liable to tax under section 9(5) of the CGST Act[ Notification No. 14/2022 of the CGST Act, 2017 Dated 05-07-2022 read with Para 11 of Notification No. 14/2022 Dated 05-07-2022] as these details are required to be reported separately in the manner discussed in para 3.2 of this document.

(ii) Outward taxable supplies (zero-rated)

The term zero-rated supply include exports and supply made to SEZ within its scope. In terms of this definition, the taxpayer would be required to report the following transactions in this field.

(a) Export of Goods
(b) Export of Services
(c) Supply of goods to SEZ unit/Developer
(d) Supply of Services to SEZ unit/Developer

The above supply can either be with payment of IGST or under Bond/LUT. The taxpayer is required to report all zero-rated supplies in a consolidated manner in this field. This field is auto-populated based on values provided in Form GSTR-1. The taxpayer can edit such auto-populated details.

(iii) Other outward supplies (Nil rated, exempted)

The term ‘exempt supply’ includes[ Section 2(47) of the CGST Act] the following supplies within its scope:

(a) Supply of any goods or services or both which attract nil rate of tax or
(b) Supply which may be wholly exempt from tax
(c) Non-taxable supply.

The taxpayer is required to report all the exempt supplies and NIL rated supplies in a consolidated manner in this field. This field is auto-populated based on values provided in Form GSTR-1.The values auto-populated can be modified if needed.

(iv) Inward supplies (liable to reverse charge)

All the inward supplies that are liable to reverse charge under the provisions of the GST Law are required to be reported in a consolidated manner in this field. This field would auto-populate the value from Form GSTR-2B where goods or services on which reverse charge is applicable procured from a registered person. The values can be modified if needed (such as adding other details of inward supplies liable to reverse charge).

(v) Non-GST outward supplies

The non-GST supplies are the supplies that are outside the purview of GST. The GST is not leviable on these supplies and thus only the value of supply would be required to be reported.

This field is auto-populated based on values provided in Form GSTR-1. The taxable value can be modified if needed.

Step 2- Furnishing details of outward supplies notified under section 9(5)

Where the supplies are made through an E-commerce operator on which tax is to be paid by the E-commerce operator under section 9(5), such supplies are to be reported separately in table 3.1.1 of the Form GSTR-3B[ Notification No. 14/2022 of the CGST Act, 2017 Dated 05-07-2022 read with Circular No. 170/02/2022-GST Dated 06-07-2022 based on the recommendations of 47th GST Council Meeting]. The details of such supplies will not be included in table 3.1 (i.e. outward supplies) above. The manner of reporting such details in Form GSTR 3B by the ECO and the person making supply through ECO are discussed in the below mentioned paragraphs.

(i) Taxable supplies on which ECO pays tax under Section 9(5)

This part would contain the details of supplies on which ECO is liable to pay tax under section 9(5) of the CGST Act. This is to be filed by the ECOs.

(ii) Taxable supplies made by registered person through ECO, on which ECO liable to pay tax under section 9(5)

This part would contain the details of supplies on which tax is paid under section 9(5) and this column is required to be filed by the registered person who is affecting such supplies through ECOs.

Earlier the CBIC had clarified[ Circular No. 167/23/2021-GST, Dated 17-12-2021] that in respect of restaurant services supplied through ECO the taxable person can report the supplies in row other outward supply (Nil rated, exempted). In view of the given amendment in Form GSTR 3B, the earlier clarification would no more be relevant. The taxpayers are now separately required to report such transactions in the separate table introduced in Form GSTR 3B.

Step 3- Furnishing inter-State supplies made to unregistered persons, composition taxable persons and UIN holders details

Out of the supplies shown above (in the manner as discussed in para 3.1 and 3.2 of this document), the registered person is required to report the details of inter-state supply made to the following persons separately:

(a) Supplies made to unregistered persons
(b) Supplies made to Composition Taxable Persons[ Section 10 of CGST Act]
(c) Supplies made to UIN holders

The amendment reported (in the manner discussed in para 3.1. and para 3.2. of this document) relating to Table 9 or Table 10 of FORM GSTR-1 or any entry in Table 11 of FORM GSTR-1 should also be given effect to while reporting the figures in this table (i.e. Table 3.2 of FORM GSTR-3B)[ Circular No. 170/02/2022-GST Dated 06-07-2022 based on the recommendations of 47th GST Council Meeting].

This table enables the Central Government to settle their funds with the respective State Governments. Therefore, the CBIC has clarified[ Para 3 of Circular No. 170/02/2022-GST Dated 06-07-2022 based on the recommendations of 47th GST Council Meeting] the industry to correctly report the above information with correct details of place of supply.

Step 4- Furnishing details of Eligible ITC details

The field-wise instructions for furnishing the details of input tax credit claimed and reversed during a tax period in Form GSTR-3B are discussed in the below mentioned paragraphs.

(i) ITC Available (whether in full or part)

The taxpayer is required to report the Input Tax Credit availed by him during the tax period in a consolidated manner in this field. This field is auto-populated based on values in Form GSTR-2B except ‘Import of services’. The tax amount (IGST/CGST/SGST whichever is applicable) and cess can be modified if needed.

With effect from January 1, 2022, upward variance (i.e. claiming ITC more than the value coming in GSTR 2B) is not allowed[ Rule 36(4) of CGST Rules as amended by Notification No. 40/2021 – Central Tax dated 29-12-2021] in this field. This is in view of the inclusion of a specific condition in the Input Tax credit provision that ITC would be available where the detail of invoice/debit note is furnished by the supplier in its Form GSTR 1 and it is communicated to recipient in Form GSTR 2A.

The details of ITC availed during the tax period are required to be reported in Form GSTR-3B in the following sub-fields:

Import of goods

The import of goods are subject to IGST under the Customs Tariff Act, 1975. The tax paid by the importer can be claimed as input tax credit. The taxpayer is required to report the ITC availed by him on the import of goods during the tax period in a consolidated manner in this sub-field.

Import of services

The import of services are subject to reverse charge under the GST law. The GST paid under reverse charge can be claimed as input tax credit by the importer of services. The ITC availed by him on the import of services during the tax period is required to be reported in a consolidated manner in this sub-field.

Inward supplies liable to reverse charge (other than 1 and 2)

In this sub-field, the taxpayer is required to report the ITC availed by him on inward supplies on which he has paid the tax on reverse charge in a consolidated manner.

Inward supplies from ISD

The input tax credit availed by a taxpayer on account of the inward supplies procured by him from Input Service Distributor is to be reported in this sub-field in a consolidated manner.

The ‘Input Service Distributor’[ Section 2(61) of the CGST Act ] is an office of the supplier of goods or services or both which receives tax invoices [Section 31 of the CGST Act] towards the receipt of input services and issues a prescribed [Rule 54 of the CGST Rules] document (i.e. ISD Invoice/debit note/credit note) to distribute the tax credit on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.

All other ITC

In this sub-field, the taxpayer is required to report all other inward supplies details which do not fall in any of the above (1) to (4) sub-fields on which he is entitled to avail input tax credit in a consolidated manner. This will be auto-populated from Form GSTR-2B excluding the ineligible ITC on account of the limitation period as delineated in section 16(4) of the CGST Act, 2017 or where the recipient of an intra-State supply is located in a different State/UT than that of place of supply.

It has been clarified[ Circular No. 170/02/2022-GST Dated 06.07.2022 based on the recommendations of 47th GST Council Meeting] that the GST that is liable to be reversed, whether of permanent nature (such as Rule 38, Rule 42/43, Section 17(5) etc.) or temporary and reclaimable (such as reversal Rule 37 etc.) , should be included in ‘All other ITC’ and the reversal should be separately shown in the relevant sub-head of ITC reversed.

(ii) ITC Reversed

The manner of reporting the ITC to be reversed in the Form GSTR 3B has been changed with effect from July 05, 2022[ Notification No. 14/2022 of the CGST Act, 2017 Dated 05-07-2022 read with Circular No. 170/02/2022-GST Dated 06-07-2022 based on the recommendations of 47th GST Council Meeting]. The manner of reporting is discussed in the below mentioned paragraphs.

(a) As per Rules 38, 42 & 43 of CGST/SGST Rules and Section 17(5)

The Input Tax credit which is required to be report reversed by the taxpayer under the following provisions are to be reported in this sub-field:

As clarified [Circular No. 170/02/2022-GST Dated 06.07.2022 based on the recommendations of 47th GST Council Meeting] by the government, this sub-field is to include the ITC reversal that is of absolute or permanent in nature and is not reclaimable.

(b) Others

The taxpayer is required to report any other ITC reversed by him (other than under Rule 38, 42 or 43 and section 17(5)) during the tax period in this sub-field. As clarified by CBIC[ Circular No. 170/02/2022-GST Dated 06.07.2022 based on the recommendations of 47th GST Council Meeting], this includes the reversal of ITC that is not permanent in nature and can be reclaimed in the future subject to the fulfilment of certain conditions. This may include reversal on account of non-payment to vendor beyond 180 days, any ITC which was wrongly availed earlier, transitional credit wrongly carried forward, etc. Downward variance is not allowed in this sub-field.

(iii) Other Details

The manner of furnishing the other details of ITC in Form GSTR-3B is discussed in the below-mentioned paragraphs.

(a) Items reclaimed which were reversed under table 4(B)(2) in earlier tax periods

As clarified by the CBIC[ Circular No. 170/02/2022-GST Dated 06.07.2022 based on the recommendations of 47th GST Council Meeting], where the ITC on certain inward supplies has been reversed earlier in the sub-field (B)(2) of Table 4 i.e. ITC Table as per the provisions of GST Law, and the same is reclaimable now as the conditions to claim the same have been fulfilled, such ITC is required to be reported in sub-field 4(D)(1) along with its inclusion in sub-field 4(A)(5) i.e. ‘All other ITC’.

(b) Ineligible ITC u/s 16(4) & ITC restricted due to PoS provisions

This includes the ITC that is ineligible to be claimed under the provisions of section 16(4) of the CGST Act, 2017 i.e. due to lapse of time to claim ITC on the invoices and the ITC that is restricted to PoS (Place of Supply) provisions i.e. the ITC where the CGST and SGST of a state different from that of the recipient are charged. The details provided in this sub-field are not to be included in any other sub-field of the ITC Table. In other words, this is merely for information purposes. Further, these details are also reflected in Form GSTR 2B under the ineligible category.

Step 5- Furnishing details of exempt, nil-rated and non-GST inward supplies details

The values of exempt, nil-rated and non-GST inward supplies during the tax period are required to be reported in Form GSTR-3B with the bifurcation of Inter-state and Intra-state under the respective heads. These details are required to be reported in the following fields:

Step 6- Furnishing details of interest & late fee payable

The details of Interest and late fees for the previous tax period are required to be reported in GSTR-3B. The field wise instructions for furnishing such details in Form GSTR-3B is as under:

(i) Interest

With effect from January 01, 2022, the GSTN has deployed a functionality of auto-interest calculation. The interest values will be auto-populated based on the breakup of tax liabilities provided in the previous return period. The taxpayer can modify the details which are auto-populated. If the information entered in the interest column is less than the auto-populated interest, then such figures would be highlighted in red. Further, the printed version of Form GSTR 3B would show both the details of interest (i.e. auto-populated and self-entered value). For understating the manner in which the GSTN computed the interest refer announcement document Auto-calculation of interest by GSTN.

(ii) Late Fee

The late fee would be system computed based on the number of days elapsed after the due date of filing GSTR-3B for the previous return period. It cannot be modified.

Step 7- Payment of tax and filing of return

After furnishing all the details and saving the Form GSTR 3B, the taxpayer would be required to pay the taxes and offset the liability with the credit or cash ledger.

Step 8- File Form GSTR-3B by short messaging service (SMS) facility

A registered person is given an option to furnish [Rule 67A of CGST] a ‘Nil return’ of inward and outward supplies in Form GSTR-3B through an SMS using the registered mobile number. The said details shall be verified by a One Time Password (OTP) facility.

In this regard, the person can send an SMS to the 14409 number to file Nil Form GSTR-3B. For sending this message, the following format should be used:

<NIL>space<Return Type>space<GSTIN>space<Return Period>

For the purpose of filing ‘Nil’ details, the term ‘Nil return’ has been defined[ Explanation to Rule 67A] as a return for a tax period that has nil or no entry in all the Tables in Form GSTR-3B.

Also Read:
Process of filing of Nil GSTR-3B through SMS
Details Required To Be Furnished In GSTR-3
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