Can the filling of GSTR-3B be avoided by filing GSTR-1, 2 & 3?
September, 25th 2017
This article discusses in detail “whether GSTR-3B is to be filed mandatorily or not when it entails huge tax liability due to submission of some wrong information & non revision of the same or filing of the same can be avoided filing of GSTR-1, 2 & 3?”
Query : Sir, i have done mistake in GSTR-3B while submitting the same which has resulted in huge tax liability, so i have not filled the same as there on option to rectify the same on GST website. Can I avoid the filling of GSTR-3B and comply with law by GSTR-1, 2 & 3 in the days to come?
Ans. No. The filling of GSTR-3B is mandatory as per CGST rule 61(5).
For this, attention is invited to old & revised CGST rule 61(5) & newly introduced rule 61(6) vide notification no. 17 /2017 Central Tax dated 27th July 2017 and are reproduced below:
61(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2under 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
61(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, [specify the manner and conditions subject to which the]10 return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
New Rule inserted
61(6) Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in FORM GSTR-2-
(a) Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period;
(b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other liabilities, if any;
(c) where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person.
Earlier Rule 61(5) specified that GSTR-3B is to be filed in lieu of GSTR-3. Which meant that if you are filing GSTR-3B, you need not file GSTR-3.
But, the words “in lieu of” have been removed in the amended Rule 61(5). Accordingly it can be construed that:
• A tax payer has to file GSTR-3B • A tax payer also has to file GSTR-3
Analysis of newly inserted rule 61(6)
Auto Generation of GSTR-3
A new rule 61(6) provides that once GSTR-3B has been filed, GSTR-3 will be auto-generated by GSTN.
• GSTR-3 will be generated after due date for furnishing GSTR-2 which shall be consisting of 2 parts i.e. Part-A & Part-B
• Part A of GSTR-3 will be auto-generated based on information provided in:
GSTR1 and GSTR2
Other liabilities of preceding tax periods
• Part B of GSTR-3 will be auto-generated based on information provided in GSTR-3B
Part A of GSTR-3
Part B of GSTR-3
Preceding period liabilities
Discrepancy between GSTR-3 and GSTR-3B
Tax liability in GSTR-3 and GSTR-3B will be matched and:
• If tax liability in GSTR-3 is higher than what is declared in GSTR-3B, tax payer will have to modify Part B of GSTR-3 and discharge the shortfall in liability.
• If tax liability in GSTR-3 is less than what is declared in GSTR-3B, the surplus will be credited to electronic credit ledger of the taxpayer.
Revised due dates of filing GSTR-3B as per latest Notification No. 35/2017 – Central Tax dated 15th September, 2017
Last Date for filing GSTR-3B
20th September 2017
20th October 2017
20th November 2017
20th December 2017
20th January 2018
From the above discussion, it is amply clear that filing of GSTR-3B is mandatory in addition of filling of GSTR-1, 2 & 3.
If GSTR-3B is not filled with in time prescribed that there shall be levy of late fee @ 100 per day subject to maximum of 5,000/- per Act along penal interest for non payment of tax.
However in case of GSTR-3B wrongly submitted by not filed due to excess tax liability, a request may be made to jurisdictional commissioner to allow revision of the same.