Last updated: April 3rd, 2023 6:00 PM

What is difference between GSTR-3 and GSTR-3B?

Monthly returns are vital to the Goods and Services Tax (GST) system. They are essential for taxpayers as they help them track their GST transactions. They assist authorities in identifying any discrepancies in the returns filed by the taxpayer. Two monthly returns required to be filed under the GST law are GSTR-3 and GSTR-3B. This article discusses the differences between GSTR-3 and GSTR-3B in detail. 

What is GSTR-3?

GSTR-3 is the monthly return filed on the 20th of each month. It includes all the details of outward supplies, inward supplies, input tax credit, and tax liability. This form is used to calculate the total tax liability for the month. It also helps reconcile the GST paid with the GST collected by the taxpayer.

What is GSTR-3B?

GSTR-3B is a monthly return filed on the 20th of the following month. This form reports the total turnover and the tax liability based on the outward supplies and input tax credit. It is a simplified form and does not require the same level of detail as GSTR-3.

What are some differences between GSTR-3 and GSTR-3B?

GSTR-3 and GSTR-3B are two different forms of Goods and Services Tax (GST) returns applicable to taxpayers in India. While both are used to report GST compliance and calculate taxes due, some differences between them are essential to understand.

• The main difference between GSTR-3 and GSTR-3B is that GSTR-3 is a more detailed form that requires more information than GSTR-3B. GSTR-3 involves information on the inward and outward supplies, input tax credit, and tax liability. GSTR-3B, on the other hand, is a simplified form that only requires the total turnover and the tax liability based on the outward supplies and input tax credit.
• Another difference is that GSTR-3 requires taxpayers to provide a statement of financial transactions, which is not required in GSTR-3B. This statement includes details of the tax liability for the month, the amount of input tax credit taken, and the amount of tax payable.
• Finally, another difference between GSTR-3 and GSTR-3B is that GSTR-3 requires taxpayers to submit a reconciliation statement between the GST paid and the GST collected by the taxpayer, while GSTR-3B does not.

In conclusion, while GSTR-3 and GSTR-3B are both forms of GST returns applicable to taxpayers in India, there are some differences between them. GSTR-3 is a more detailed form that requires more information than GSTR-3B and also requires taxpayers to submit a statement of financial transactions and a reconciliation statement between the GST paid and the GST collected.