Overview
GSTR-3B is a simplified tax return for GST-registered dealers covering details of outward supplies (sales) and inward supplies (purchases/expenses). This return must be filed every month by the 20th of the following month. EZTax.in simplifies GSTR-3B generation with automatic data import from your sales and purchase invoices.
Important: The GST portal will automatically generate GSTR-3B based on your filed GSTR-1 return. It is recommended to file GSTR-3B using the portal's auto-generated data. The GSTR-3B JSON file generated from EZTax.in is optional and for reference purposes.
GSTR-3B Preparation Process
The GSTR-3B preparation workflow in EZTax.in follows a structured 8-step process. If you have created your sales invoices, purchases, and expenses in EZTax.in GST Accounting, you can directly import all the data to GSTR-3B:
- 1Month and Year Selection
GSTR-3B is a simple tax return containing details of outward and inward supplies. It needs to be filed every month. The due date for filing GSTR-3B is the 20th of the following month. Select the month and year for which you are filing the return.
- 2Update GSTR-3B/Add Data
Click on "Update GSTR-3B" after selecting the month and year. This will automatically import the data for the selected month from your invoices. Alternatively, you can click "Add Data" to manually enter invoices that were not entered earlier in the system.
- 3Outward Taxable Supplies (Other than Zero, Nil, Exempted)
These are goods sold or services provided within India. This section includes the taxable value of goods or services, IGST, CGST, SGST/UTGST, and cess payable on outward supplies.
- 4Outward Taxable Supplies (Zero Rated)
This includes the taxable value of exports or sales made to SEZ units. If you select customer type as SEWOP/EXWOP, IGST will not apply. If you select SEZWP/EXWP, IGST will apply to the supply.
- 5Outward Taxable Supplies (Nil, Exempted Rated)
Nil-rated supplies are goods or services with 0% GST rate. Exempted supplies are goods or services specifically exempted from GST through government notification. These details are automatically imported when you mark product types as nil-rated or exempted.
- 6Inward Taxable Supplies (Liable to Reverse Charge)
When you purchase goods or services from an unregistered supplier or notified goods, you must pay tax on reverse charges. Mark reverse charge as "yes" in your purchase or expense invoices for these details to appear in GSTR-3B.
- 7Non-GST Taxable Supplies
Non-GST supplies are goods or services on which GST is not leviable. These are non-taxable supplies. When you select the product type as "non-GST," these values will be automatically imported into this section.
- 8Download GSTR-3B JSON File
After reviewing all sections and confirming the data accuracy, download the GSTR-3B JSON file from EZTax.in. If you have created your invoices through EZTax.in GST, it will automatically import all sales invoice data to GSTR-3B. Download the JSON file and upload it to the GST portal.
Inter-State Supplies
The details of sales made to unregistered persons located in different states must be declared in the inter-state supplies section. When the place of supply in your sales is different from your GST registration state, those sales will be automatically declared here. This ensures proper tax attribution to the correct state.
Note: Inter-state supply details are crucial for state-wise tax reporting and help authorities track state-wise supply patterns.
Eligible Input Tax Credit (ITC)
Input Tax Credit means claiming the credit of GST paid on purchase of goods and services used for the furtherance of your business. ITC is the backbone of the GST mechanism and one of the most important reasons for introducing GST. Eligible ITC is defined in four main categories:
Import of Goods
Goods brought into India from outside. IGST paid on purchase of goods from outside India will be declared here and claimed as ITC.
Import of Services
Services supplied by an overseas supplier to you in India. IGST paid on purchase of services from outside India will be declared and claimed here.
Reverse Charge Supplies
ITC on goods or services purchased from unregistered dealers. Mark reverse charge as "yes" in your purchase invoices for these details to appear here.
ISD Supplies
Input Service Distributor invoices for services used by your branches. Mark supplier type as ISD in your purchases or expenses to declare these here.
ITC Reversal: Rules 42 and 43 of the CGST Rules apply when supply is partly used for business and partly for other purposes. In such cases, part of the ITC must be reversed and cannot be claimed fully.
Ineligible ITC: ITC paid on purchases/expenses not used for business purposes is ineligible. Additionally, the Government of India has notified certain items as "blocked credits" where ITC cannot be availed. The ITC eligibility is based on whether it is used for taxable supplies or exempt supplies.
Calculation: Net ITC Available = Total Eligible ITC - ITC Reversed. This is automatically calculated in EZTax.in based on your input data.
Exempt and Inward Supplies
Nil-rated supplies are those with zero GST rate or specifically kept exempt from GST (e.g., salt, religious items, milk, yogurt). This section covers two important sub-categories:
- Composition Scheme, Exempt & Nil Rated Supplies: The value of goods or services purchased from suppliers registered under the composition scheme, or nil-rated or exempted goods. These details are classified as intra-state or inter-state supplies.
- Non-GST Supplies: Non-GST supplies are goods or services on which GST is not leviable. These are non-taxable supplies and must be declared in this section.
Interest and Late Fees
When a registered dealer misses filing GST returns within the due date, the government levies late fees. These amounts are calculated and reported separately under IGST, CGST, SGST, and UTGST. You can also report any credit availed against these amounts.
There are two modes to make a payment towards interest and late fees:
- Utilizing Input Tax Credit paid (as mentioned in the ITC section)
- Tax/Cess paid in cash (option available when you log into the GST Portal)
Important: The GST form does not allow cross-utilization of CGST and SGST. For online payments, visit https://payment.gst.gov.in/payment/
Need Help with GSTR-3B Filing?
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