Are You Obliged to File GSTR-3B in GST Scenario?

The recent introduction of Goods and Services Tax (GST) has brought with it a range of new formalities and procedures for registered taxpayers. One of the first key returns to be filed in this regime is the GSTR-3B, which requires filing even if no transactions have taken place in the initial months. This article seeks to clarify the obligations of registered persons, especially in the scenario of a nil trading month.

Introduction to GSTR-3B Filing Obligations

As of August 2017, the first filing of the Goods and Services Tax Return (GSTR-3B) is due. Despite the current environment where the majority of registered persons have yet to file, it is imperative to understand the implications of not filing your GSTR-3B.

Mandatory Filing Requirement Regardless of Business Activity

Provisional vs. Final Return: The GSTR-3B serves as a provisional return for the month of July 2017. It is a monthly return requirement for all dealers under the GST regime, even those opting for the composite scheme. Dealers under the composite scheme are not required to file the GSTR-3B but must file quarterly returns. The GSTR-3B is only a provisional document, as final returns (GSTR-1, GSTR-2, GSTR-3) for the month of July 2017 have yet to be filed.

Procedures and Obligations

Provisional Returns and Final Submissions

Given the provisional nature of the GSTR-3B, any revisions to data can be made during final submissions (GSTR-1, GSTR-2, GSTR-3) that follow. It is essential to ensure that any due taxes for July 2017 are paid before filing the GSTR-3B. Any excess tax payable due to changes in figures must be paid with interest before the deadline for the GSTR-3B.

GSTR-3B for Transitional Period

During the transitional period, some traders may have oversold or undersold that may impact their tax liability. GSTR-3B does not offer the same transitional credits as VAT/Service Tax/Excise; these must be declared in form TRAN-1. Once TRAN-1 is filed, the credits become available for use.

Online Filing and Required Details: GSTR-3B must be filed online on the official GST portal. The form requires several specific details:

Registered Person’s GSTIN Number and Legal Name Outward and Inward Supplies (including those under reverse charge) Details of input tax credit (ITC), exports, exempt, nil-rated, and non-GST inward supplies Summary of payments, tax credit, and TDS/TCS credits

Eligible Input Tax Credit Set-off

When setting off eligible ITC, one must prioritize within the same head (IGST, CGST, SGST/UTGST, and Cess) before inter-setting. It's important to note that GST and SGST cannot be set off against each other.

Selecting the Mode of Filing

GSTR-3B can be submitted electronically via digital signatures or electronic verification codes. However, companies must use digital signatures for submission.

Conclusion

Filing the GSTR-3B is a mandatory requirement for all registered persons under the GST regime, regardless of whether any transactions have occurred in July 2017. The GSTR-3B functions as a provisional return that may require revisions during the subsequent filing process. It is crucial to ensure all obligations are met, including paying any due taxes before submission and accurately reporting transitional credits through form TRAN-1.

Key Takeaways:

Mandatory filing of GSTR-3B even if no sales have been made. GSTR-3B is a provisional return, subject to further revisions. No refund can be claimed through the GSTR-3B; any excess ITC is credited to the ITC ledger.