How GSTR 3B is calculated?

Modified on Tue, 3 Jan, 2023 at 10:57 AM

What is GSTR 3B?

The GSTR-3B is a consolidated summary return of inward and outward supplies that the Government of India has introduced as a way to relax the requirements for businesses that have recently transitioned to GST.

How GSTR 3B is calculated?

GSTR-3B is divided into 7 sections.

This article contains in detail each section/table of GSTR-3B and the details to be provided in it.

  1. Provide GSTIN (you can use your provisional id as your GSTIN if you do not have a GSTIN)
  2. Legal Name of the Registered Person [this field is auto-populated after entering GSTIN]
  3. 1. Outward supplies and inward supplies on reverse charge i.e. Details where tax is payable by you

These details are further broken down into the following-

  • Outward taxable supplies – This includes the taxable value of supplies/sales which are NOT zero-rated, or have a nil rate of tax or are exempt from GST. In other words, this includes only those supplies on which GST has been charged by you. The formula will be as below:
    • Value of Taxable Supplies = Value of invoices + value of debit notes – value of credit notes. Value of invoices includes both Retail and Wholesale invoices.
    • In simple words, Value of Taxable Supplies = Value of Sales + value of Wholesales + value of Purchase Return – value of Sales Return - value of Wholesale Return.
  • Outward taxable supplies (zero-rated) – here include only those supplies on which GST rate is zero. Zero-rated supplies are exports or supplies made to SEZ.
  • Other outward supplies (nil rated, exempt) – include supplies which are exempt from GST or are nil rated. Nil-rated supplies are those for which the GST rate is nil. Or which have been kept exempt from GST. For e.g. salt, fresh milk etc. These goods are exempt from GST.
  • Inward supplies (liable to reverse charge) – provide details of purchases made by unregistered dealers on which reverse charge applies. In such cases, you have to prepare an invoice for yourself and pay the applicable GST rate of tax.
  • Non-GST outward supplies – details of any supplies made by you kept wholly out of GST. For eg, alcohol and petroleum products.

For each of these you must provide, the total taxable value (a total which has been invoiced). And then further break this up into IGST, CGST, SGST/UTGST and cess if any.

This report does not require invoice-level detail. Only the consolidated values for the month must be provided. You do not have to provide the GST rate, only the total tax values.

3.2 Of the supplies shown in 3.1(a) and 3.1.1(i) above, details of inter-state supplies made to unregistered persons, composition taxable persons, and UIN holders.

This section includes inter-state supplies made to unregistered persons or composition taxable persons. In the case of a Retail Pharmacy business, most of the supplies are intra-state. Hence, it may not be calculated for eVitalRx.

4. Eligible ITCThis is the detail required for the input tax credit. It must be provided separately for IGST, CGST, SGST, UTGST, and Cess. Only total values have to be reported and invoice-level information is not required.

(A) ITC Available (whether in full or part) – This information must be broken down into ITC on:

  • Import of goods,
  • Import of services,
  • Inward supplies on reverse charge (other than on import of goods and services reported above)
  • Inward supplies from your Input Service Distributor (ISD) basically your head office registered as an ISD under GST
  • All other ITC

(B) ITC Reversed

(C) Net ITC available (A) – (B) – This will include net ITC available and will be auto-populated by eVitalRx.

(D) Ineligible ITC

5. Details of exempt, nil rated, and non-GST inward supplies

Here you have to report any purchases made by you of goods or services, which are from a composition dealer, are exempt, nil rated or not covered by GST at all. This information must be broken down into inter-state and intra-state.

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