Finalization of outward supplies(Invoices) and inward supplies (Purchases)
GSTR 3 is a monthly return on the finalization of outward supplies and inward supplies. It can be generated only when GSTR 1 & GSTR 2 is filed.
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GSTR 3 is a monthly return based on the finalization of GSTR 1 and GSTR 2 .GSTR 3 can be generated only when GSTR 1 and GSTR 2 for the tax period have been filed by the taxpayer.
Yes, it is mandatory to discharge the liability before filing GSTR 3. If not discharged, it is treated as invalid return.
Tax liability can be discharged by utilizing credit available in electronic credit ledger and electronic cash ledger.
The return will be treated as invalid return and the taxpayer has to file the part B of GSTR 3 again.
The taxpayer can claim refund from electronic cash ledger when all the return related liabilities for that tax period have been discharged.