Tax, GST and company law glossary

GSTR-3B

The monthly or quarterly summary GST return through which tax is paid.

In short

It is due by the 20th of the next month, or the 22nd or 24th after the quarter for QRMP filers. Late filing attracts late fee and 18% interest.

What it means

GSTR-3B is the summary GST return through which a business declares its total output tax, claims input tax credit (ITC) and actually pays the net GST due. Unlike GSTR-1, it does not list individual invoices; it shows totals. It is the return that settles your GST liability for the period.

How it works

  • Monthly filers: due by the 20th of the following month.

  • QRMP filers: due by the 22nd or 24th of the month after the quarter, depending on the state. For the first two months of the quarter they pay tax through form PMT-06 by the 25th of the next month.

  • Auto-fill: output tax comes from GSTR-1 and GSTR-1A; ITC comes from GSTR-2B. Some auto-filled tables, such as inter-state supplies in Table 3.2, cannot be edited; corrections are made through GSTR-1A.

  • Interest: 18% a year on the net tax paid in cash after the due date.

  • Late fee: ₹50 a day (₹25 CGST plus ₹25 SGST), or ₹20 a day for nil returns, subject to a turnover-based cap.

  • Time bar: a return cannot be filed after three years from its due date.

Example

Joshi Foods, a monthly filer, has this position for October 2026:

Output GST on sales: ₹1,80,000

Eligible ITC as per GSTR-2B: ₹1,20,000

Net GST payable in cash: ₹1,80,000 - ₹1,20,000 = ₹60,000

The return is due on 20 November 2026, but Joshi Foods files on 30 November, 10 days late.

Interest = ₹60,000 x 18% x 10 / 365 = ₹296 (rounded)

Late fee = 10 days x ₹50 = ₹500 (₹250 CGST + ₹250 SGST)

Total extra cost = ₹796

Interest is charged only on the ₹60,000 paid in cash, not on the ₹1,20,000 settled through credit.

Key points to remember

  • Claim only ITC that appears in GSTR-2B and on which all conditions are met; excess claims must be reversed with interest.

  • Reconcile purchase records with GSTR-2B every month, not just at year-end.

  • Non-filing of GSTR-3B for a continuous period can lead to suspension or cancellation of registration and blocking of e-way bills.

  • Even if you have no sales, file a nil return to avoid late fees.

  • Pay through the electronic cash ledger before filing; the return cannot be filed with unpaid tax.

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