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What is GSTR 3?


May 18, 2021

What Is GSTR3

What is GSTR 3?

GSTR 3 is a monthly return document, which compiles the transactions regarding the sales, purchases, and GST liability during a month. It is auto-generated, based on the information from GSTR 1 and GSTR 2.

Why is GSTR 3 Form is Important?

GSTR 3 deals with the details of the GST liability amount for the month. The taxpayers are supposed to pay the tax and file the return. It is regarded to be important because it would provide the details of the GST liability of a business for a particular month.

When is GSTR 3 Due?

As per the GST act, the due date for GSTR 3 is the 20th of next month. A five day gap would be at disposal between GSTR 2 and GSTR 3  for filling to rectify any mistakes or errors.

What happens if GSTR 3 is not filled before GSTR Due Date?

Unless you file GSTR 3 , you would be unable to file GSTR 1 for next month. So late filing in the GSTR 3 format would cause heavy fines and penalties.

What Happens if GSTR 3 filed Late?

For delay in filing GSTR 3 form, the taxpayers would be liable to pay interest and late fee. the interest is 18% per annum.  It has to be calculated by the taxpayer on the amount of outstanding tax to be paid. . Time period will be from the next day of filing (16th of the month) to the date of payment. As per the act, 100 rs per day is for a late fee. 100 each for CGST and SGST respectively. 200/day would be in its entirety. 5000 is the maximum and no late fee on IGST.

Who should file GSTR 3?

Even without having any transaction during a month, every registered taxpayer should file GSTR 3. These registered persons need not file GSTR 3 form.

  • Input service distributors
  • Composition dealers
  • Non-resident taxable person
  • Persons liable to collect TCS 
  • Persons liable to deduct TDS
  • Supplier regarding online information and database access or retrieval services, who have to pay tax themselves.

How to Revise GSTR 3 ?

GSTR 3 form revision is not possible once it is filed. Rectification could be made only in the next month’s GSTR 1 and GSTR 2 returns. As GSTR 3 is autogenerated, direct revision is not possible.

Prerequisite for Filing GSTR 3

For filing GSTR 3

  • You should be a GST registered person with a 15 digit PAN based GSTIN.
  • You should have filed GSTR 1 and GSTR2.
  • In order to verify, using an Electronic Verification Code you either need an OTP from your registered phone number or a digital certificate. An Aadhar based ensign could also be used for filing GST returns.
  • It is to be noted that you have to pay your GST for the month before filing the return. Regarding information could be fed in your GSTR3 database summary and that could be generated in the GST portal before filing the return.

 Read More:

GSTR 3 Format

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