What is GSTR-3B and who files it
GSTR-3B is a monthly self-declaration return that every GST-registered taxpayer must file, summarising outward supplies, inward supplies eligible for ITC, and tax paid for the month. Businesses with turnover above Rs. 5 crore file it monthly. Those below Rs. 5 crore in the previous year can file quarterly under the QRMP scheme, but still make monthly tax payments using PMT-06 challan.
Key due dates to remember
For businesses with turnover above Rs. 5 crore: GSTR-3B is due on the 20th of the following month. For QRMP taxpayers: GSTR-3B is due on the 22nd or 24th of the month following the quarter, depending on the state. Late filing attracts interest at 18 percent per annum on the unpaid tax and a late fee of Rs. 50 per day (Rs. 20 per day for nil returns), subject to a maximum cap.
Step 1: Log in and navigate to GSTR-3B
Log in to the GST portal at gst.gov.in using your GSTIN and password. Navigate to Services, then Returns, then Returns Dashboard. Select the financial year and the return period (month or quarter). Click on Prepare Online next to GSTR-3B. The system will show you a pre-populated return based on your GSTR-1 and GSTR-2B data.
Step 2: Fill outward supplies in Table 3.1
Table 3.1 requires you to declare total outward taxable supplies (including zero-rated), exempt supplies, nil-rated supplies, and non-GST supplies. The figures here should match your GSTR-1 for the same period. Any mismatch between GSTR-1 and GSTR-3B becomes a reconciliation issue that the department can flag. Cross-check your GSTR-1 data before filling this table.
Step 3: Claim ITC in Table 4
Table 4 is where you declare Input Tax Credit. ITC available as per GSTR-2B should be the starting point. You can only claim ITC that appears in GSTR-2B unless you have documentary evidence and the supplier has filed their GSTR-1. ITC must be claimed within the earlier of November 30 of the following financial year or the date of filing the annual return. Excess ITC claims are a primary reason for GST notices.
Step 4: Verify tax payable and make payment
Once you fill outward supplies and ITC, the system auto-computes tax payable under IGST, CGST, and SGST. Use available ITC to offset liability before making cash payment. If cash payment is required, generate a payment challan and pay through net banking, NEFT, or RTGS. The challan payment updates your Electronic Cash Ledger on the GST portal.
Common mistakes that cause notices
The most frequent GSTR-3B errors include: claiming ITC not reflected in GSTR-2B, reporting outward supplies lower than GSTR-1 (which creates a mismatch), not reversing ITC on goods returned or credit notes received, and filing a nil return when there were actual transactions. Each of these can trigger a demand notice with interest and penalties if not corrected promptly.
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