GSTR 3 Explained

Finalization of outward supplies(Invoices) and inward supplies (Purchases)

Key Components of GSTR 3 Return:

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.

  • GSTR 3 contains part A & Part B. Part A is auto populated on the basis of GSTR 1 and GSTR 2. Part B contains details of payment of tax, interest, late fee etc by utilizing credit available in electronic credit ledger and electronic cash ledger.
  • GSTR 3 Part A includes the details like turnover, inter-state outward supplies, intrastate supplies, inward supplies on which tax is payable on reverse charge.
  • GSTR 3 Part A also includes the details of Input Tax credit available, Total Tax liability, TDS/TCS credit and interest liability.
  • GSTR 3 Part B contains the details of tax payable, tax paid, interest/late fee payable paid, refund claimed from electronic cash ledger.

EZGST providing strategies, tactics and sales tax tips in its blogs for corporates and tax consultants to make right decisions about GST etc. A simple return transaction may result in a tax loss and can attract penalties. EZGST will make sure Return Filings are Error Free.


GSTR 3 Return Filing

Quick GSTR 3 FAQs

1What is GSTR 3?

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.

2Is it mandatory to pay the tax liability before filing GSTR 3?

Yes, it is mandatory to discharge the liability before filing GSTR 3. If not discharged, it is treated as invalid return.

3What are the modes of discharging tax liability before filing GSTR 3?

Tax liability can be discharged by utilizing credit available in electronic credit ledger and electronic cash ledger.

4What happens if a taxpayer has filed the return and intends to discharge the tax liability later?

The return will be treated as invalid return and the taxpayer has to file the part B of GSTR 3 again.

5When can the tax payer claim refund from electronic cash ledger?

The taxpayer can claim refund from electronic cash ledger when all the return related liabilities for that tax period have been discharged.