GSTR-3B An Analysis

Introduction.

Before moving to file GSTR-3B we need to understand why GSTR-3B is required to be filed by a normal taxable person instead of GSTR-1, GSTR-2 and GSTR-3 for the first two month (i.e. July and August, 2017.

As per the provisions of Rule 61 (5) of CGST Rules:-

Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, return in FORM GSTR-3B, in lieu of FORM GSTR-3, may be furnished in such manner and subject to such conditions as may be notified by the Commissioner.

Time limit for submission of GSTR-1 and GSTR-2

For the month of July, 2017

GST Return	Earlier	Now
GSTR-1	On or before 10th of August	On or before 5th of September
GSTR2	On or before 15th of August	On or before 10th of September

For the month of August, 2017

GST Return	Earlier	Now
GSTR-1	On or before 10th of September	On or before 20th of September
GSTR2	On or before 15th of September	On or before 25th of September

 It is clear from the above table that the date of filing of GSTR-1 and 2 has been extended for the month of July and August, 2017 and hence the normal taxable person is required to file GSTR-3B for the month of July and August, 2017.

Who is required to file GSTR-3B

As per section 39 read with rule 61 of the CGST Rules, 2017 GSTR-3B is required to be furnished by:-

Every registered person other than ISD, Non-resident taxable person, Composition suppliers, Person liable to deduct tax under section 51, E-commerce operator liable to collect tax under section 52, supplier of OIDAR (online information data base access and retrievable service) services located in non-taxable territory supplying services to non-taxable online recipient.

Periodicity and due date for filing of GSTR-3B:-

Return	Periodicity	Due date
GSTR-3B	For July, 2017	On or before 20th August, 2017
GSTR-3B	For August, 2017	On or before 25th September, 2017

 Particulars of GSTR-3B at a glance:

Table No.	Particulars
1	GSTIN of registered person
2	Legal name of the registered person
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

Particulars in details to be filed in GSTR-3B

Year	2	0	1	7
Month	07

1.	GSTIN
2.	Legal Name of business								Auto populated

Note:- A registered person is required to fill GSTIN of the business and the legal name of the business shall be auto populated from GSTN itself.

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

Nature of supplies	Total Taxable Value	Integrated Tax	Central Tax	State/UT Tax	Cess
1	2	3	4	5	6
a)      Outward taxable supplies (other than zero rated, nil rated and exempted)
b)      Outward taxable supplies (zero rated )
c)      Other outward supplies (Nil rated, exempted)
d)     Inward supplies (liable to reverse charge)
e)      Non-GST outward supplies

Analysis of the above requirements:-

• Outward taxable supplies other than zero rated, nil rated and exempted supplies:-
• A normal taxable person is required to file the details of outward supplies which are liable to be taxed under reverse charge basis such as supplies specified in section 9 (3) [specified supplies] and in ward supplies which required to be taxed under reverse charge basis as specified under section 9 (4) [Purchase from unregistered person by a registered person] of the CGST Act, 2017.
• Outward taxable supplies Intra and Inter-state – B2B and B2C
• Exempted supplies – Goods and services exempt from GST
• Subject to NIL rate of tax – A normal taxable person has to refer the rate schedule to identify nil rated supplies which are not required to be shown in part (a) above.
• Zero rated supplies: As specified in section 16 of IGST Act (I.e. Supply to SEZ and export) are not required to be shown in point number (a).
• Exempted supplies: Supplies which are exempted under a notifications are not to be shown in point (a) above.
• Supplies which are covered under section 16 of the IGST Act, 2017 (Export and supplies to SEZ and developer).
• T taxable person is required to file the value of nil rated and exempted supplies.
• Supplies which are covered under section 9 (4) of CGST Act, 2017 (purchase from unregistered person by a registered person).
• Supplies which are outside the ambit of GST.

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

Nature of supplies	Place of Supply (State/UT)	Total Taxable value	Amount of Integrated Tax
1	2	3	4
Supplies made to Unregistered Persons *
Supplies made to Composition Taxable  Persons **
Supplies made to UIN holders ***

 Analysis of the above requirements

*Inter-state B2C supplies as the SGST portion of IGST will go to the consumption state

**AS the composition taxable person can not avail ITC on purchase, in order to track those recipient the above requirement is required.

***Certain special entities like consulate or embassy of foreign countries, the above details are required to track the refund claim by those entities on purchases.

4. Eligible ITC

Details	Integrated Tax	Central Tax	State/UT Tax	Cess
1	2	3	4	5
(A) ITC Available (whether in full or part)
(1)   Import of goods
(2)   Import of services
(3)   Inward supplies liable to reverse charge (other than 1 & 2 above) *
(4)   Inward supplies from ISD
(5)   All other ITC
(B) ITC Reversed
(1)   As per rules 42 & 43 of CGST Rules **
(2)   Others
(C) Net ITC Available (A) – (B)
(D) Ineligible ITC
(1)   As per section 17(5) ***
(2)   Others

Analysis of above requirements

* Inward supplies covered under section 9 (3) [specified supplies] and section 9 (4) [from unregistered suppliers]

** Inputs, input services and capital goods used partly for business and partly for other purpose; partly for effecting taxable supplies including zero rated supplies to the extent of effecting exempted supplies or used for other purposes.

*** Negative list of GST ITC Such as:-

Motor vehicles and other conveyances except when they are used––

• For making the following taxable supplies, namely:—
  • Further supply of such vehicles or conveyances; or
  • Transportation of passengers; or
  • Imparting training on driving, flying, navigating such vehicles or conveyances;
• For transportation of goods;

The following supply of goods or services or both—

• Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
• Membership of a club, health and fitness centre;
• Rent-a-cab, life insurance and health insurance except where––
• Travel benefits extended to employees on vacation such as leave or home travel concession;

Works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;

Goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Explanation.––For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;

Goods or services or both on which tax has been paid under section 10;

Goods or services or both received by a non-resident taxable person except on goods imported by him;

Goods or services or both used for personal consumption;

Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and

Any tax paid in accordance with the provisions of sections 74, 129 and 130.

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

Nature of supplies	Inter-state supplies	Intra-state supplies
1	2	3
From a supplier under composition scheme, Exempt and Nil rated supply
Non GST supply

Analysis of the above requirements

* Only value to be shown as no taxes were charged on such supplies.

** Non GST Supplies such as alcoholic liquor for human consumption and five specified petroleum product such as petrol, diesel, crude petrol, aviation turbine fuel and natural gas. 

6. Payment of tax

Description	Tax Payable	Paid through ITC				Tax paid TDS/TCS	Tax cess paid in cash	Interest	Late fees
		Integrated Tax	Central Tax	State/UT Tax	Cess
1	2	3	4	5	6	7	8	9	10
Integrated Tax
Central Tax				NA
State/UT Tax			NA
Cess		NA	NA	NA

 6.2 TDS/TCS Credit

Details	Integrated Tax	Central Tax	State/UT Tax
1	2	3	4
TDS
TCS

• Value of taxable supplies = Value of invoices + value of Debit Notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices
• Details of advances as well as adjustment of same against invoices to be adjusted and not shown separately
• Amendment in any details to be adjusted and not shown separately.

What is Composition Scheme Under GST?