Capital Gains Tax in India 2025: Rates, STCG, LTCG & Indexation
16 Jun, 2025
By Online Legal India
Published On 09 Jan 2021
Updated On 09 May 2025
Category GST
It is a crucial responsibility to file monthly GST returns for every registered business in India. But with frequent updates in rules, tight deadlines, and penalties for delays, the process can feel overwhelming, especially for small and medium-sized businesses. Whether you are a startup owner or a seasoned entrepreneur, you should know that the ins and outs of return filing can save you from compliance headaches. In this article, you will learn about the GSTR 3 B - online monthly return filing, procedure, penalty & due date.
GSTR-3B is a monthly return form that GST-registered taxpayers must file to declare a summary of their sales, Input Tax Credit (ITC), and tax payments. It is a self-declared return where businesses provide overall figures for the tax period, instead of invoice-wise details.
Here are the key points:
This return is mandatory under GST and helps in regular tax compliance by summarizing monthly business activity.
GSTR-3B is a monthly self-declaration return that must be filed by most businesses registered under the Goods and Services Tax (GST) in India. It helps the government keep track of tax payments and input tax credit (ITC).
GSTR-3B must be filed by all regular taxpayers registered under the GST regime. This includes businesses that have no transactions during a tax period, in which case they are required to file a nil return.
Additionally, taxpayers who have opted for the Quarterly Return Monthly Payment (QRMP) scheme are also required to file GSTR-3B, but every quarter instead of monthly.
Certain categories of GST-registered persons are exempt from filing GSTR-3B. Composition taxpayers are required to file GSTR-4 instead. Input Service Distributors (ISD) must submit GSTR-6, while non-resident taxable persons are obligated to file GSTR-5.
Additionally, service providers offering Online Information and Database Access or Retrieval (OIDAR) from outside India are required to file GSTR-5A.
If a registered taxpayer fails to file GSTR-3B on or before the due date, they must pay a late fee and interest, as per GST rules.
A late fee is charged on a daily basis for each day of delay in filing GSTR-3B. The standard fee is Rs.50 per day, split as Rs.25 under CGST and Rs.25 under SGST.
However, if the taxpayer has no tax liability and is filing a nil return, the late fee is reduced to Rs.20 per day, with Rs.10 under CGST and Rs.10 under SGST.
The maximum late fee for filing GSTR-3B is based on the taxpayer's annual turnover. For those with a turnover of up to Rs.1.5 crore, the maximum fee is Rs.2,000. If the turnover is between Rs.1.5 crore and Rs.5 crore, the fee is Rs.5,000. For taxpayers with a turnover exceeding Rs.5 crore, the maximum late fee is Rs. 10,000.
The Interest on delayed payment of GST is charged at a rate of 18% per annum. It is calculated on the outstanding tax amount from the day immediately following the due date until the date the payment is made.
The late fee continues to accumulate until the return is filed, subject to a maximum limit as per current CBIC guidelines.
If there is any unpaid tax for a particular month, interest at the rate of 18% per annum is levied on the outstanding amount. This interest is calculated from the day immediately after the due date up to the actual date of payment. It applies only to the net tax liability, which is the amount payable after adjusting the input tax credit.
The due date for filing GSTR-3B depends on the taxpayer’s filing type, monthly or quarterly, and has changed over time as per government notifications.
If your annual turnover is above ?5 crore, or you have chosen to file returns monthly:
Due date: 20th of every month (for the previous month’s transactions)
If a registered taxpayer fails to file GSTR-3B on or before the due date, they must pay a late fee and interest, as per GST rules.
A late fee is charged on a daily basis for each day of delay in filing GSTR-3B. The standard fee is Rs.50 per day, split as Rs.25 under CGST and Rs.25 under SGST.
However, if the taxpayer has no tax liability and is filing a nil return, the late fee is reduced to Rs.20 per day, with Rs.10 under CGST and Rs.10 under SGST.
The maximum late fee for filing GSTR-3B is based on the taxpayer's annual turnover. For those with a turnover of up to Rs.1.5 crore, the maximum fee is Rs.2,000. If the turnover is between Rs.1.5 crore and Rs.5 crore, the fee is Rs.5,000. For taxpayers with a turnover exceeding Rs.5 crore, the maximum late fee is Rs. 10,000.
The Interest on delayed payment of GST is charged at a rate of 18% per annum. It is calculated on the outstanding tax amount from the day immediately following the due date until the date the payment is made.
The late fee continues to accumulate until the return is filed, subject to a maximum limit as per current CBIC guidelines.
If there is any unpaid tax for a particular month, interest at the rate of 18% per annum is levied on the outstanding amount. This interest is calculated from the day immediately after the due date up to the actual date of payment. It applies only to the net tax liability, which is the amount payable after adjusting the input tax credit.
The due date for filing GSTR-3B depends on the taxpayer’s filing type, monthly or quarterly, and has changed over time as per government notifications.
If your annual turnover is above ?5 crore, or you have chosen to file returns monthly:
Due date: 20th of every month (for the previous month’s transactions)
If you are enrolled under the Quarterly Return Monthly Payment (QRMP) scheme, you are required to file the GSTR-3B once every quarter. The due date for the filing depends on your state or union territory.
For taxpayers in the Group 1 states and the union territory, the due date is the 22nd of the month following the end of the quarter. The due date is the 24th for those in Group 2. For instance, for the January to march 2025 quarter, the due date will be either 22nd or 24th April 2025. This depends on your location.
It is important to remember that even if you have already paid your taxes, you must file GSTR-3B on time to avoid penalties. A delayed return will attract both late fee and interest. Therefore, if you are part of the QRMP scheme, always confirm which due date applies to your state or union territory.
If you are a business owner or tax filer under GST, you are probably familiar with GSTR-3B, the return where you pay your tax and claim Input Tax Credit (ITC). But to make sure you are claiming the right amount of ITC, it is important to compare your GSTR-3B with GSTR-2A and GSTR-2B. Let’s make sense of all three, without the jargon.
GSTR-3B is a summary return that businesses registered under GST must file either monthly or quarterly, which depends on their turnover and chosen scheme. In this return, you need to declare three key details that are:
GSTR-3B filing ensures that your tax liabilities are recorded and settled with the government within the prescribed time. But you have to be careful while claiming ITC, and that is where 2A and 2B come in.
GSTR-2A can be thought of as a dynamic, auto-generated statement that acts like a live feed. It keeps updating in real-time whenever your suppliers file their GSTR-1 returns and upload invoices. This return reflects all the purchases and inward supplies that your suppliers have reported for your GSTIN.
Since it continuously changes based on when suppliers file or revise their returns, the data in GSTR-2A is not considered final and may vary over time. It is primarily used for reconciliation purposes to cross-check Input Tax Credit (ITC) claims.
GSTR-2B is a static statement, unlike GSTR-2A, which keeps updating. The GSTR-2B is usually generated on the 14th of each month. Once GSTR-2B is generated, it remains unchanged. This statement provides a clear summary of the Input Tax Credit (ITC) you are eligible to claim for that specific tax period. Because the data in GSTR-2B is fixed and does not vary, it is considered more reliable and useful for accurately filing your GSTR-3B return.
Why You Should Reconcile These Returns
Now, you might be thinking, why do you have to go through all this matching? The following justifies the effort:
Avoid GST Notices
The department may send you a notification if you claim more ITC in GSTR-3B than is available in GSTR-2B. No one desires that inconvenience.
Sometimes, suppliers don’t upload invoices in time, and that means you could miss out on the ITC you are eligible for. Reconciliation helps catch that.
If an invoice is missing from 2A/2B, your supplier likely forgot to report it. This gives you a chance to remind them before you lose credit.
Regular reconciliation keeps your tax filings neat and clean, and over time, this boosts your GST compliance score.
What Should You Use?
Keeping up with your GST returns can be easy. It is important to reconcile GSTR-3B with 2A and 2B before you file, as you can avoid errors, save money, and prevent future.
It might sound technical to file GSTR-3B, but with a bit of guidance, it is not that hard. It is a summary return that every GST-registered business needs to file every month (or quarterly if you are under the QRMP scheme).
Step 1: Log in to the GST Portal
You first have to visit the official GST Portal. To log in, you will need to enter your username, password, and your GSTIN (Goods and Services Tax Identification Number). Once you log in, you will be guided to your dashboard. Here you can access the various GST-related services and filings.
Step 2: Head to the GSTR-3B filing Return
Once you are on the GST Portal, you have to navigate to the top menu and click on 'Services'. After that, you need to select 'Returns' and choose 'Returns Dashboard'.
After accessing the Returns Dashboard, pick the appropriate financial year and month for which you want to file your return. Next, under GSTR-3B, click on the "Search" button and then select the "Prepare Online" button to begin the preparation of your return.
Step 3: Fill in Your Sales Details
In this section of the process, you need to report your total sales for the month. Begin by the addition of the total value of all your sales transactions. Be sure to mention any exports or supplies subject to reverse charge, as these require special reporting.
Additionally, don’t forget to include any exempt or nil-rated items, as these also need to be declared in your return for accuracy. Just make sure these values match what you reported in GSTR-1.
Step 4: Claim Input Tax Credit (ITC)
Next, you need to declare the amount of tax you paid on your purchases, which forms your Input Tax Credit (ITC). Report the eligible ITC from your purchases and imports. If there are any ineligible credits, such as those you need to reverse, make sure to declare them as well. You can use the remaining eligible ITC to offset your tax liability. To ensure accuracy and avoid claiming ineligible credits, it is a good idea to cross-check this information with your GSTR-2B before finalizing your return.
Step 5: Declare Your Tax Payable
Based on the details you provide for sales and purchases, the GST portal will automatically calculate your tax liability. You will be able to see the amount of CGST, SGST/UTGST, IGST, and Cess that you owe. If you have delayed filing, the system will also add any applicable interest or late fees. To settle your tax liability, first utilize your ITC balance, and for the remaining amount, you can make the payment using your cash ledger.
Step 6: Make Payment (If Needed)
If your Input Tax Credit (ITC) does not fully cover your total tax liability, you will need to pay the remaining amount manually. To do this, click on the ‘Create Challan’ option on the GST portal. Then, select your preferred payment method you can choose from Net Banking, NEFT/RTGS, or Over the Counter payment at authorized banks. Once the payment is made, the amount will be updated and reflected in your cash ledger, which can then be used to settle your outstanding tax dues.
Step 7: Review Everything
Before you submit, it’s always good to double-check. You have to select ‘Preview GSTR-3B’ to download a draft version of your return for review before final submission. Go through the numbers to make sure everything is correct.
Step 8: Submit the Return
Once you are sure, go ahead and click ‘Submit’.
After submission, the form gets frozen, and no changes are allowed after this point.
Step 9: File with DSC or EVC
To officially file your return, you need to authenticate the submission using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). If you choose the EVC option, a One-Time Password (OTP) will be sent to your registered email and mobile number. Enter this OTP on the portal to complete the filing process and officially submit your return.
Step 10: Save the Acknowledgement
This is the final step, once you successfully file your return, the GST portal will generate an Acknowledgement Reference Number (ARN) as proof of submission. It is important to download and save this confirmation for your records, as it may be required during future audits or in response to any GST notices.
Even if you had no business activity in a particular month, you will still be required to file a Nil GSTR-3B. Make sure to file your return on time to avoid late fees and interest. Most importantly, make sure to match your Input Tax Credit (ITC) with the details in your GSTR-2B, as claiming more ITC than eligibility can result in scrutiny or notices from the tax department.
Filing GSTR-3B accurately and within the due date is essential for maintaining GST compliance and avoiding penalties. However, frequent updates in rules and strict deadlines can make the process challenging. Here, Online Legal India comes in. Our expert team helps you file your GST returns accurately, on time, and without any hassle. We can give you support for timely & error-free filing, ITC reconciliation support, and expert assistance at every step. Visit online legal India today.
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