Last updated: March 30th, 2023 12:05 PM

What is monthly return in GST?

Monthly returns are a vital part of the GST system. Taxpayers must file monthly returns as they help the authorities monitor the taxpayers' compliance with the GST laws. This article will discuss monthly returns in GST and form GSTR-3B in detail.

What is a monthly return under GST?

The GST Law requires all registered taxpayers to file GST returns monthly / quarterly to report the details of their sales and purchases, tax liability, and other details. The GST amount can be paid online or offline. The taxpayer must provide all the details of their sales and purchases in the returns. This includes the total taxable value, the GST rate and the amount of tax paid. The returns are divided into three parts: GSTR-1, GSTR-2 and GSTR-3.

• GSTR-1 is the return for outward supplies, which the taxpayer files.
• GSTR-2 is the return for inward supplies, which the supplier files.
• GSTR-3 is the summary return of both GSTR-1 and GSTR-2.

One of the returns required under the GST law is GSTR-3B. GSTR-3B is a return that reports the overall revenue and tax liability using outward supplies and input tax credit.

What is GSTR- 3B?

GSTR-3B is a monthly GST return that all registered taxpayers file. It includes details of the previous month's sales and purchases, along with the taxes paid on them and other details. GSTR-3B is a simple form that contains the details of the taxpayer’s sales and purchases, the taxes paid and collected, and the liabilities to be paid or refunded. It also includes the details of the input tax credit (ITC) claimed by the taxpayer and any other taxes and duties paid. The details in GSTR-3B are to be filled as per the information provided in the previous GST returns filed by the taxpayer. The taxpayer must include the details of the sales and purchases made in the previous month and the taxes paid or collected on them. The taxpayer must also provide details of the ITC claimed and the taxes and duties paid.

When to file GSTR-3B?

The GSTR-3B is to be filed on or before the 20th day of the following month. The taxpayer can file the return online or offline. Once the return is filed, the taxpayer must pay any outstanding tax liabilities within the due date. In conclusion, GSTR-3B is an essential monthly return for all registered taxpayers under the GST law. It helps track the sales and purchases made in the previous month and the taxes paid and collected on them. Filing the GSTR-3B on time is essential for all taxpayers as it helps to file the other GST returns accurately.