What happens if I file GSTR-3 late?

Filing GSTR-3 late results in an 18% per annum interest charge on the outstanding amount, along with daily penalties. This delay can also affect your tax refunds and input tax credit claims.

How can I correct errors in a submitted GSTR-3?

To correct errors in a submitted GSTR-3, choose the option 'Reset GSTR-3B'. It will help change the status from 'Submitted' to 'Yet to be Filed', thus helping taxpayers make edits they want to.

What are the main differences between GSTR-3 and GSTR-3B?

The major difference between GSTR-3 and GSTR-3B is that GSTR-3 is a more comprehensive & detailed form that captures all supplies, while GSTR-3B is a simplified form that doesn't require data from other returns. In other words, GSTR-3 provides a comprehensive overview, in contrast, GSTR-3B gives you a quicker reporting option.

Why is accurate data entry important in GSTR-3?

Accurate and proper entry of information in GSTR-3 is important as it will reduce chances of discrepancies that may prompt inquiries from tax authorities, thus ensuring the integrity of financial records and enables precise reconciliation of tax liabilities and input tax credits.

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

Q: Who needs to file GSTR-3?

All registered taxpayers under GST must file GSTR-3, including normal, casual, and non-resident taxable persons, as well as those required to collect TCS or deduct TDS, while certain entities like Input Service Distributors and Composition Dealers are exempt.

Author: Editorial Team | in, Updated on: April 02, 2025

Overview : Monthly GST Returns are indispensable for the Goods and Services Tax system. Such returns help track GST transactions of the previous month. Moreover, these returns also assist the concerned GST authorities' easily identify any discrepancies in the returns filed by the taxpayers. Two key monthly GST returns that are required to be filed under the GST law are GSTR-3 and GSTR-3B. Explore the key differences between GSTR-3 and GSTR-3B in this post further.

GSTR-3 & GSTR-3B are monthly GST forms to report accurate and updated GST transactions that took place the previous month. Filing these GST return forms each month within the deadline helps stay compliant and keep fines or penalties at bay. Learn about the key differences between these crucial GST forms, GSTR-3 & GSTR-3B, for better understanding and ensuring compliance.

GSTR-3 is a monthly return filing form that every registered taxpayer must file. It details all business transactions within a month. You see, the Goods and Services Tax (GST) return forms—GSTR-3 and GSTR-3B—are what help track GST transactions and ensure compliance with services tax regulations. That return includes information on inward and outward supplies and aids in calculating total tax liability.

Understanding GST return forms, mainly GSTR 3 and GSTR 3B, and their differences is key to maintaining GST compliance. This post emphasizes GSTR-3 vs. GSTR-3B along with their meaning, key components, due dates, etc.

Key Takeaways

GSTR-3 is an essential monthly GST return form which should be filed by 20th of the following month. In general, it's the time for tax liability calculation and reconciliation. Providing clear, accurate information in form GSTR-3 is essential as it helps avoid penalties, ensure compliance and maintain financial integrity. So, it's necessary to provide details as required in the form.

What is GSTR-3?

This monthly return form captures detailed information about outward and inward supplies, input tax credits, and tax liability. It helps calculate total tax liability and reconcile the GST paid with what was collected. The content of GSTR-3 is auto-generated, pulling information from GSTR-1 (outward supplies) and GSTR-2 (inward supplies).

Any adjustments from an earlier tax period are also reflected in GSTR-3. If you fail to file form GSTR-3, you won't be able to file GSTR-1 for subsequent months, which can affect your compliance status. All registered persons must file this monthly return.

What is GSTR 3B?

GSTR-3B is a simplified monthly return that helps report the total turnover and tax liability as per outward supplies and input tax credits. This form typically requires less information than GSTR-3. In short, it is a self-declared return form that simplifies the GST return filing process and makes it hassle-free. As compared to the GSTR-3 form, this form requires less information. It focuses on the essentials like outward supplies, inward supplies, input tax credit and net tax payable.

Filing GSTR-3B is mandatory for all registered taxpayers—even if there are no transactions during a period. That keeps the GST system up-to-date with the latest business activities. This ensures accurate tax collection and compliance. The return can be filed through the GST portal, which provides a user-friendly interface for taxpayers to report their GST liabilities and settle them.

Key Components of GSTR-3 Including Input Tax Credit

GSTR-3 is a comprehensive GST return that reports all relevant transactional details, including GST returns. It covers a vast range of information such as outward supplies, inward supplies, tax liability and input tax credit. This level of detail ensures taxpayers report all eligible and ineligible input tax credits under specified tables.

Key Differences between GSTR-3 and GSTR-3B

As mentioned above, GSTR-3 and GSTR-3B are two different types of GST return filing forms applicable to taxpayers in India. Both the GST forms are used to report GST compliance and calculate taxes due, however, it's essential to know their differences. Some key differences between GSTR 3 & GSTR 3B forms are described below;

The key difference between these two GST forms is that GSTR-3 is a form that requires more information than GSTR-3B. GSTR-3 involves information on the inward and outward supplies, input tax credits, and tax liability. While GSTR-3B is a simplified form in which only the total turnover and the tax liability depending on the inward supplies and input tax credit, are required.
GSTR-3 requires a statement of financial transactions of the taxpayers while in case of GSTR-3B, it's not required. This statement includes details of the tax liability for the month, the amount of input tax credit taken, and the amount of tax payable.
GSTR-3 requires taxpayers to submit a reconciliation statement between the GST paid and the GST collected by the taxpayer while GSTR-3B doesn't require such submission.

Who Needs to File GSTR-3?

Filing GSTR-3 is mandatory for all registered taxpayers. That includes normal and casual taxpayers, those making inter-state supplies, and e-commerce operators. Even if there are no transactions, the return must be filed. However, certain registered individuals—Input Service Distributors and Composition Dealers—are exempt from filing GSTR-3. Non-resident taxable persons and those required to collect TCS or deduct TDS must also file this return if they have GST registration.

Due Dates of Filing GSTR-3 & 3B

GSTR-3 is a monthly form that must be filed each month within its due date, which is generally 20th of the following month. This monthly frequency ensures that the concerned departments have full details of transactions obtained through regular reporting of GST returns. This practice helps maintain accurate and fully up-to-date records of GST liability and credits.

Filing GST returns timely helps accurate invoice data matching and also makes sure that the return is auto-populated with the correct and updated data. In case you miss the deadline for GST return filing, it can lead to late fees and penalties. Similar to other compliances, it's also crucial to adhere to the GST filing details and deadlines to ensure compliance with GST return filing.

Benefits of Timely Filing GSTR-3 & 3B

For taxpayers, filing GSTR-3 and GSTR-3B forms properly and timely can offer a number of benefits. Primarily, it makes taxpayers eligible to avail input tax credits, maintaining a positive and good standing with the tax authorities, which will eventually help in uninterrupted and smoother business operations.

Moreover, filing GSTR-3 within its due date helps keep penalties and associated complications away that eventually ensures compliance and streamlined tax process. This monthly filing is not only to avoid negative outcomes but also helps avail positive outcomes of a well-managed and timely GST return filing.

Conclusion

Understanding and accurately filing GSTR-3 & GSTR-3B forms, is critical for compliance with the GST & taxation system in India. Right from knowing who needs to file to the importance of timely submission, each aspect plays a vital role in maintaining accurate tax records. Filing these GST return forms ensure that they remain compliant, avoid penalties, and benefit from a smooth tax filing process. This blog comprehensively educates you of GSTR 3 vs GSTR 3B to ensure your GST return filing is not only accurate but also be done within the deadline.

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Author Bio

Editorial Team | in

Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.