What is GSTR-3B?

The GSTR-3B is a consolidated simple summary return that the Government of India has introduced to relax the needs for businesses that have recently adopted GST. Since plenty of tiny and medium businesses are mistreating manual accounting ways, filing returns among the July 2017 deadlines would be tough for several of those businesses. Hence, from July 2017 to June 2018, tax payments are going to be supported by a straightforward return referred to as the GSTR-3B.

If you have registered your business under GST then, it is mandatory to file GST returns within the prescribed timeline given by the government. Phoenix tax offers a simple and cost-effective way of GSTR-3B filing in Tambaram, Chennai.

When to file GSTR-3B?

From 1st January 2021, tiny taxpayers with an aggregate turnover of about five crores will file quarterly GSTR 3B. Liabilities will be inhabited from GSTR 3B to GSTR 1 while filing returns.

Prerequisites for filing GSTR 3B

A GST Consultant in Chennai emphasizes that the GSTR-3 form ought to be submitted by any business that’s prone to file the monthly returns GSTR-1, GSTR-2 and GSTR-3. The GSTR-3B forms are often simply filed online through the GSTN portal. The taxes due are often paid through challans in banks or online payment.

You either want an OTP from your registered phone to verify your return using an EVC (electronic verification code) or a digital signature certificate (of category a pair of or higher). You can file your GST returns using an Aadhar based mostly on e-sign.

Process of GSTR-3B filing in Chennai

For the GSTR-3B filing in Chennai, you may offer your GSTIN and legal name, and complete different tax-related sub-sections such as:

Details of your sales and purchases that area unit answerable for reverse charge:

In this section, you may ought to enter the full rateable price (equal to the full price of things and services on invoices + debit notes – credit notes + advance tax received), and tax collected below completely different tax heads (IGST, CGST, SGST/UTGST, and Cess) for the following:

  • Sales provide (Zero-rated provides – includes things and services that are exported by you overseas, deemed exports or those sold to SEZ units or developers).
  • Sales provide (other than zero-rated, aught rated and exempted – includes all regular rateable sale of things and services created by you).
  • Other sales provide (Nil rated and exempted provides. It’s vital to recollect that nil-rated and exempted products and/or services below GST don’t seem to be identical. Nil-rated merchandise doesn’t seem to be taxed at the time of sale however, input decrease will still be claimed for them. Exempt products don’t seem to be taxed at the purpose of sale, and no input decreases are often claimed for them.)
  • Purchase provides an answer for reverse charge (purchase transactions wherever you’re prone to pay the tax on to the govt. on behalf of your provider who could or might not be registered below GST).
  • Non-GST sales provide (for example, petrol)
  • Cess is applicable to bound industries like vehicles and tobacco. If your business isn’t concerned with commercialism such a product, there’s no need to enter cess-related details.

Details of inter-state sales created to unregistered patrons, patrons registered below the composition theme, and UIN (Unique Identification Number) holders:

During this section, you may need to fill in details concerning the place of offer (in easy terms, this can be the situation of the customer/the place wherever you deliver product or services), total rateable price (amount on the invoice), and IGST collected for the subsequent styles of interstate sales created by you:

  • Supplies created to unregistered folks (includes unregistered businesses and finished consumers).
  • Supplies created to Composition rateable folks (registered businesses WHO have opted for the composition scheme).
    • Supplies created to UIN holders
    • Unique positive identification (UIN) holders embody the following:
    • Any specialized agency associated with the UN Organization.
    • Consulates or embassies of foreign countries.
    • Multilateral money establishments or Organizations are enclosed below the UN Organizations Privileges and Immunities Act of 1947.
    • Any person or cluster of individuals who are selected by the Commissioner to receive a UIN.

Eligible ITC (Input Tax Credit)

Your final tax payment and credits are going to be calculated to support your input Tax Credit (ITC). In this section, you will need to enter details regarding the following to finish the GSTR-3B filing in Chennai:

  1. ITC on the market (whether full or part): Enter the tax amounts associated with the import of products (1), import of services (2), inward supplies answerable for reverse charge (3), inward supplies from Input Service Distributors (4), rest other ITC (5) that’s not enclosed below subsections (1) and (2) of section 4A.
  2. ITC Reversed (per rules 42 and 43 of CGST rules): below this, you may furnish details of capital goods/services that are used for non-business functions. The ITC against such things and services are going to be created unavailable to you since lawfully, you can solely claim ITC on rateable products and services by commercializing them or for business functions.
  3. Internet ITC on the market: Calculate this by subtracting the reversed ITC (B) from the available ITC (A).
  4. Ineligible ITC (per section 17(5) and others): This includes blocked credits when certain services are concerned. You are not allowed to assert ITC on transportation services (if they’re not for the aim of activity goods), food, health services, cab services for workers, and sweetness services by default.

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

Under this subsection, the payer ought to enter taxation details for inter-state and intra-state purchases created. This includes provides purchased from a provider below the Composition theme, purchase of things and/or services that are either exempt from GST (they attract 1/3 GST however you as a payer cannot get a refund of tax paid on inputs), nil-rated (attract 1/3 GST by default, however, permits you to assert refunds of tax paid on inputs accustomed impact them) or non-GST supplies (items that don’t return below the view of GST and will instead attract state VAT below the recent system).

Interest and Late fee payable

This could apply to solely those businesses who have some further tax liabilities obligatory on them (this may arise whenever they fail to accommodate one or additional GST regulations). If this is applicable to you, then you’re to declare the combination quantity of interest and/or late fee applicable on rateable provisions that will or might not attract tax on reverse charge below completely different tax heads (IGST, CGST, SGST/UTGST and Cess).

Payment of tax:

You’ve got to pay the GST you owe to the government. before filling up this section since, it captures the general tax amounts obtained CGST, SGST, IGST, and cess. embody the general tax due, tax paid through ITC tax paid with relation to TDS/TCS credits, and tax/cess that was paid in money (this conjointly includes those amounts paid as interest and late fee).

TDS/TCS credit

Whenever a client or e-commerce deducts or collects tax at supply, then you receive credit against it. If you’ve accumulated such credits throughout this month, (also referred to as TDS/TCS credits) they’re captured below this section below completely different tax heads (IGST, CGST, SGST/UTGST). After filling altogether these details with the help of a GST consultant in Chennai, the GSTR-3B Form is often submitted once being signed by the approved payer