11 Key Steps that can guarantee 100% error free GSTR-3B

Sl. No.

Description of Error Committed

Correct Reflection

Special Instructions

1

Export Sales

(Generally reported alongwith regular sales)

Under Column 3.1(b)

2 Kind of Exports Export with Tax Export without Tax - In this case only Taxable Value will be there

2

Exempt / Nil Rated / Non Gst Sales

Generally reported alongwith regular sales

Under Column 3.1(c)

Exempt sales include Interest Income Sales attracting 0% GST Rate, etc.

3

Liability due to Reverse Charge (Generally reported under 3.1(a) along with general taxable sales)

Under column 3.1(d)

Inward Supplies attracting RCM are:-

1) Security Guard Service

2) Renting of Motor Vehicle

3) GTA Services, etc.

4

Inter-state sales made to URD, Composition, Embassy (Generally not reported)

Under Column 3.2

State-wise sales to be shown These are only for reporting purpose Non-Reporting will lead to penal action-as per recent circular

These figures should also be reported alongwith sales under 3.1(a)

5

Import of Goods IGST (Generally reported under all other ITC)

Strictly under Column 4(A)(1)

Should not be reported under Other ITC

This will not reflect in GSTR-2A

Hence will lead to unreconciled 2A

6

Input of Reverse Charge (Generally reported under all other ITC)

Under Column 4(A)(3)

RCM Input will never appear in 2A

Hence it should be shown here to avoid unreconciled 2A

7

Reversal of Input Tax Credit

(Generally reversals not done)

under column 4(B)(2)

under column 4(B)(1)

Following reversal should be reported here

1) ITC reversal due to Debit Note

2) Reversal due to short in 2A

3) Reversal due to wrong claim made, etc.

Proportionate Reversal due to exempt supplies

8

Cross-Utilisation at Payment Stage

(to curb situations which lead to payment of SGST even when there is enough ITC under CGST)

Table 6.1

New Rule of cross-utilisation applicable

IGST credit to be used before using CGST & SGST credit

Leftover IGST credit to be utilised 50:50 against CGST & SGST liability

9

Missed Cess & Additional Cess

(both in output as well as input)

Cess column of 3.1 & 4(A)(5)

This is skipped most of the times

Please note that cess is to be adjusted with cess input only i.e. no cross adjustment

10

Generally Interest Not paid on delayed Payments - to be levied on net payable (This is with retrospective 01.07.2017)

18% p.a. day basis calculation

As per latest amendment in GST Laws Interest to be paid on net payable basis i.e. after deducting Input from Output

11

Sometimes Input of Previous Year claimed in Subsequent Year

Can be claimed upto due date of Sept 3B following the F.Y.

While cliaming ITC, one should keep in mind this provision - otherwise penal action will be invoked on violation of Sec. 16(4) of CGST Act