Definition
GSTR-3B
GSTR-3B is the monthly or quarterly summary GST return through which a taxpayer declares net tax liability and pays the tax due.
GSTR-3B is the self-declared summary in which a taxpayer states total outward supplies, eligible input tax credit and the net tax payable, then settles the liability. It is the return through which actual tax is paid into the government's account.
Reconciling GSTR-3B with the detailed sales in GSTR-1 and the auto-drafted credit in GSTR-2B is a core compliance task. Discrepancies — such as claiming more credit in 3B than allowed by 2B — are closely scrutinised and can lead to demand notices and interest.
Related terms
- GSTR-2BGSTR-2B is an auto-generated, static statement that tells a buyer the input tax credit available based on suppliers' filed returns.
- GSTR-1GSTR-1 is the GST return in which a registered taxpayer reports the details of all outward supplies, or sales, made during a period.
- Input Tax Credit (ITC)Input Tax Credit lets a GST-registered business offset the tax it has already paid on purchases against the GST it collects on sales, so tax is levied only on value added.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.