What is GSTR-3B?

What GSTR-3B does

Where GSTR-1 lists your sales invoice by invoice, GSTR-3B is a single summary. In it you:

• declare output tax on sales, and tax payable on purchases under reverse charge;
• claim the input tax credit you are eligible for;
• pay the difference, plus any interest and late fee.

Every normal taxpayer files it, even with nil activity. Composition dealers do not; they use CMP-08.

The main tables

The portal pre-fills Table 3 from your GSTR-1 and Table 4 from your GSTR-2B. The rules on editing the auto-filled sales figures have been tightened, with corrections expected to go through GSTR-1A instead, so check the current position on gst.gov.in.

A worked example

Mehta Distributors, Indore, for October:

• Sales within Madhya Pradesh: taxable ₹10,00,000 at 18% → CGST ₹90,000 + SGST ₹90,000.
• Sales to Maharashtra: taxable ₹3,00,000 at 18% → IGST ₹54,000.
• ITC from purchases appearing in GSTR-2B: IGST ₹80,000, CGST ₹40,000, SGST ₹40,000.

Credit is set off in a fixed order. IGST credit goes first: ₹54,000 against IGST, leaving ₹26,000, which is used against CGST (or SGST). Say ₹26,000 against CGST.

Total cash payable: ₹74,000. The set-off rules are explained further in IGST vs CGST and SGST.

Due dates, interest and late fee

• Monthly filers: by the 20th of the following month.
• QRMP filers: by the 22nd or 24th of the month after the quarter, depending on the state. They also pay tax monthly in the first two months of the quarter.

Interest: tax paid late attracts interest, generally 18% a year, on the portion paid in cash. In the example above, if ₹74,000 is paid 10 days late, interest is about ₹74,000 × 18% × 10 ÷ 365 = ₹365.

Late fee: generally ₹50 a day (₹20 for nil returns), subject to turnover-based caps. Rates and caps can change by notification; confirm on cbic-gst.gov.in. Interest and late fee are paid in cash.

Not filing GSTR-3B for a set number of periods also blocks e-way bill generation, which can stop your dispatches.

Reverse charge, reversals and other details

Three parts of GSTR-3B need care beyond the pre-filled numbers.

Reverse charge. If you hired a goods transport agency that does not charge GST, or paid an advocate, the tax on those services is your liability. It goes in Table 3.1(d) and must be paid in cash. Once paid, the same amount can usually be claimed as ITC in Table 4 in the same return, if the service is used for business.

Reversals. Table 4B is where you take credit out: blocked items, credit on bills not paid within 180 days, and credit on supplies used for exempt sales. Reversing here and claiming again later when the condition is met keeps an audit trail.

Inter-state B2C details. Table 3.2 asks for the state-wise break-up of inter-state sales to unregistered buyers. It is a disclosure, not extra tax, but it should agree with GSTR-1, because the figures are used to settle revenue between states.

Filing GSTR-3B, step by step

1. File GSTR-1 first, so Table 3 is pre-filled from it.
2. Download GSTR-2B for the period and match it with your purchase register.
3. Check the pre-filled figures against your books. Correct sales through GSTR-1A if needed.
4. Enter ITC to be reversed, for example on blocked credit or unpaid suppliers.
5. Check the cash ledger. If short, create a challan (PMT-06) and pay by net banking, UPI or other modes offered.
6. Offset liability, then file with DSC or EVC.

Common mistakes

• Claiming ITC from the purchase register instead of GSTR-2B.
• Forgetting reverse charge tax in Table 3.1(d), then claiming the credit anyway.
• Declaring sales lower than GSTR-1 without a credit note behind the difference.
• Paying tax under the wrong head (CGST instead of IGST). It does not adjust automatically; you pay again under the right head and claim a refund.

This is general information, not tax advice.

Checking GSTR-3B against Tally with Cashflow OS

Cashflow OS prepares a GSTR-3B view from your TallyPrime data, showing output tax and input credit by head for the period. It is a quick way to see the likely cash payment before the accountant sits down to file, and to compare it with what the portal pre-fills. The JSON can be downloaded; filing and payment happen on the GST portal.