How to file GSTR 3B and adjust tax liability to ITC

RAJA P M , Last updated: 23 August 2017
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Mr. Consultant: Welcome Mr. Client. Please sit down.

Mr. Client: Thank you Sir. My accountant is very confused for filing GSTR 3B. So, I want some details for filing GSTR 3B related.

Mr. Consultant: Sure. I'll help You. Tell me your requirements and Doubts.

Mr. Client: Sir, First of Please give me the short notes about GSTR 3B. It's help for my transaction related queries.

Mr. Consultant: Form GSTR 3B is cited in the Rule 61(5) of CGST Rules 2017 which was amended through Central Tax Notification No. 17/2017 dated 27th July 2017. As per section 39(1) & (8) every registered person must file GSTR 3B even if you do not have any transactions during the month.

GSTR 3B is a simple return FORM introduced by CBEC for the month of July-17 and August-17. We'll be file only for consolidated details not in Invoice wise details. It had 6 relevant fields,

3.1. Details of Outward Supplies and inward supplies liable to reverse charge
3.2. Of the supplies shown in 3.1 (a) above, details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders
4. Eligible ITC
5. Values of exempt, nil rated and non-GST inward supplies
6.1 Payment of tax
6.2 TDS/TCS Credit

Mr. Client : Thank You Sir. I/We can fill the details under above said fields. I have some Inward supplies and Outward supplies. How to I fill the details in GSTR 3B?

Mr. Consultant : Fill the details in 3.1 for Your all outward supplies,

3.1. Details of Outward Supplies and inward supplies liable to reverse charge :

(a) Outward Taxable supplies ( other than zero rated, nil rated and exempted) - Normal taxable supplies (Tax Invoice* + Debit Notes* + Advance received*) - (Credit notes* + Advance adjusted against Invoice* + Transitional ITC*)

Tax Invoice*	As per your Sales invoice based values
Debit Notes*	As per your purchase returns and Service related debit notes to Supplier
Advance Receipts*	Received from your customers against sales/Services
Credit Notes*	Received from your customers against default supplies/Rate difference/any
Advance adjusted against Invoice*	Received from your customers against Sales/Services after supplied materials/Services then adjust your invoice value
Transitional ITC*	As per TRAN FORMs

(b) Outward Taxable supplies (zero rated ) -
Sec 17 of IGST ACT, 2017 (EXPORT+SEZ) Your Export sales and SEZ sales is under this column

(c) Other Outward Taxable supplies (Nil rated, exempted) -
This supplies for notified by CBEC as NIL rated and Exempted goods.

(d) Inward supplies (liable to reverse charge) -
Item Specified in Sec 9(3) & Sec 9(4). Received Goods or Services from URD

(e) Non-GST Outward supplies
(Alcoholic Liquor, Petrol, Diesel, Crude Oil, Turpentine - These related dealers)

3.2. Of the supplies shown in 3.1 (a) above, details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders:

Supplies made to Unregistered Persons	Sale outside state to unregistered dealer (In bill GSTIN not mentioned)
Supplies made to Composition Taxable Persons	sale outside state to composition taxable person
Supplies made to UIN holders	sale outside state to foreign diplomatic mission & Embassy

4. Eligible ITC

(A) ITC Available (whether in full or part)
(1) Import of goods	(Basic customs Duty + Ed.Cess + Hr.Cess) + (IGST+Cess) Credit allowed only IGST & Cess
(2) Import of services	Services Received from abroad
(3) Inward supplies liable to reverse charge (other than 1 & 2 above)	Purchased from Unregistered Dealer
(4) Inward supplies from ISD	Supplies received from ISD/HO
(5) All other ITC	As per purchased from Intra States and Inter States
(B) ITC Reversed
(1) As per rules 42 & 43 of CGST Rules	As per rule 42 & 43 of CGST
(2) Others
(C) Net ITC Available (A) - (B)
(D) Ineligible ITC
(1) As per section 17(5)	As per section 17 (5)
(2) Others	All others

5. Values of exempt, nil rated and non-GST inward supplies

From a supplier under composition scheme, Exempt and Nil rated supply	From Composition dealer purchases, Nil and exempted
Non GST supply	(Alcoholic Liquor, Petrol, Diesel, Crude Oil, Turpentine - These related dealers)

6.1 Payment of tax

Integrated Tax - Tax paid to IGST
Central Tax - Tax paid to CGST
State/UT Tax - Tax paid to SGST / UTGST
Cess - Tax paid to CESS

6.2 TDS/TCS Credit

TDS	NA (Contract value >2.5 lack)Sec 51 Postponed YET
TCS	NA (Related with E-commerce)Sec 51 Postponed YET

Mr. Client: Thank you for the Briefly explained. Finally one more big doubt. At the time of GSTR 3B filing We entered the Outward supplies Taxable Value and Tax Values and Inwards Supply's Tax Value. After submitted the 'Payment of Tax' column is shown Tax Liability as our full sales Tax value. The value is not less my Input Tax. So, what can I do in this situation?

Mr. Consultant: Very Good question Mr. Client. Because some dealer see the liability amount then they are shocked and think to pay the amount. But, It's not adjusted self. We can adjusted it to particular ITC and Cash payments.

Example: ABC and Co total supplied goods and Services Rs. 10,00,000 (Ass.Value) Taxes are IGST Rs. 10,000, CGST Rs. 15000 and SGST Rs. 15000. The same ITC as IGST Rs. 8,000, CGST Rs. 13,000 and SGST Rs. 13,000. RCM related liability Rs. 2500 (CGST Rs. 1250 & SGST Rs. 1250). Already paid the liability amount Rs. 6,000 and Rs. 2500 as cash. After enter the Values in Outward supplies in Column no 3.1 and Inward supplies in Column no 4.

After save and submit the return the 'Payment of Tax' Column show the liability of Rs. 40,000. But, don't be panic saw the value of the liability. We can adjust the (Liability - ITC = Payable - Paid = Zero).

How to adjust this, You just open the 'Payment of Tax' box. It's show the following

DESCRIPTION	TAX PAYABLE	PAID THROUGH ITC				TAX/CESS PAID IN CASH	INTEREST PAID IN CASH (TOTAL IN Rs)	LATE FEE PAID IN CASH Rs
DESCRIPTION	TAX PAYABLE	ITEGRATED TAX Rs	CENTRAL TAX Rs	STATE/UT TAX Rs	CESS	TAX/CESS PAID IN CASH	INTEREST PAID IN CASH (TOTAL IN Rs)	LATE FEE PAID IN CASH Rs
OTHER THAN REVERSE CHARGES
INTEGRATED TAX	10000	0	0	0	0	0	0	0
CENTRAL TAX	15000	0	0	0	0	0	0	0
STATE / UT TAX	15000	0	0	0	0	0	0	0
CESS	0	0	0	0	0	0	0	0
REVERSE CHARGES
INTEGRATED TAX	0					0
CENTRAL TAX	1250					0
STATE / UT TAX	1250					0
CESS	0					0

After ABC and Co Offset (adjust) following way

DESCRIPTION	TAX PAYABLE	PAID THROUGH ITC				TAX/CESS PAID IN CASH	INTEREST PAID IN CASH (TOTAL IN Rs)	LATE FEE PAID IN CASH Rs
DESCRIPTION	TAX PAYABLE	ITEGRATED TAX Rs	CENTRAL TAX Rs	STATE/UT TAX Rs	CESS	TAX/CESS PAID IN CASH	INTEREST PAID IN CASH (TOTAL IN Rs)	LATE FEE PAID IN CASH Rs
OTHER THAN REVERSE CHARGES
INTEGRATED TAX	10000	8000	0	0	0	2000	0	0
CENTRAL TAX	15000	0	13000	0	0	2000	0	0
STATE / UT TAX	15000	0	0	13000	0	2000	0	0
CESS	0	0	0	0	0	0	0	0
REVERSE CHARGES
INTEGRATED TAX	0					0
CENTRAL TAX	1250					1250
STATE / UT TAX	1250					1250
CESS	0					0

After Offset (adjustment) the liability is ZERO. So, The system/GSTN portal can't adjust the ITC. We only adjust our ITC to Liability.

Mr. Client: Thank you for explain Sir. I'm in very clear for the adjustment of ITC in GSTR 3B. Thank you very much for details explain and spent your own time to me/we.

Mr. Consultant: You are welcome. You can follow the way and adjust your ITC into Liability.