GSTR-3B : 10 common mistakes every taxpayers should avoid

gstr-3b return

GSTR-3B is the GST return in which output tax liability and input tax credit (ITC) is assessed by the registered person under Goods and Service Tax regime. If after utilization of ITC, output tax liability is more then GST liability has to be paid in cash. However in case input tax credit is more then remaining ITC is carried over to the next month.

The frequency of the GSTR 3B return is monthly. Also, the due date is staged as per the turnover in the different states.

Even, after lots of efforts taken by the department, to simplify the GST return, taxpayers are still facing difficulties. The main reason as discussed with the taxpayer is that they can’t revise the GST return or make any changes, one can rectify mistakes only in the next GSTR-3B return. Problems faced by the Taxpayers are broadly divided into two parts.

1. Technical issues in filling GSTR-3B

Inspite of lots of efforts taken by Infosys for better GST portal, on every due date it gets hang. So, we should try to file the return at least 2 days before due date. For other technical issues like return is not getting submitted, or so following may help-

  1. Clear history and cookies
  2. Use updated version of browser
  3. Mostly use Internet Explorer for better functioning of website.
  4. Last but not least, restart your computer or laptop, this really work many a times.

2. Human errors in filling GSTR-3B

1. GSTR-3B Questions from A to G are answered wrong


There are few questions from A to G which one has to answer to populate respective tables as per the requirement. If any question is answered wrong, the table won’t appear and one has to come back and start over again. Mostly, mistake has been taken with point E, i.e., receipt of nil rated, exempt, non GST supply. As this point does not affect the payment of GST.

2. Mixing inward supply with outward supply

Due to wrong accounting, selection of wrong heads while passing entries in the books, sometimes sales entries are mixed with purchases, or vice-a-versa. But these mistakes are known later while filling GST Annual returns, or finalizing books for tax audit or so. So, these mistakes have to be rectified within time.

3. Nil rated supply shown as non GST supply


As one can observe the liability is not affected due to nil rated, exempted or non GST supply. Many a times due to confusion between the terms, these 2 points are interchanged, or even omitted to be entered. It can be corrected in the next GSTR-3B return.

4. Showing ITC available in wrong heads – ITC on import of goods and other

gstr 3b filing

Few terms are misunderstood many a times by the taxpayer. Many a times, ITC on import of goods and services are interchanged. Even, by mistake, the normal ITC is entered in the ITC distributed from ISD. So, these are the errors, commonly committed by the taxpayers. One should be careful with the terms while entering the amounts.

5. Reversal of ITC in GSTR-3B

gst return 3b

Like availment of ITC, reversal is also confused. Many a times, purchase returns had been shown as reversal under rule 42 or 43 as point 4 (B) (1) in GSTR 3B. If any ITC is being reversed, because of wrong availment or repeated, it can be shown under point 4 (B) (2), or many a times, it has been directly reduced from ITC to be availed.

GST Interest Calculator

6. Wrong set off of output tax liability

As per the Rules, one has to first utilize the IGST credit as a whole towards liability of IGST and then for CGST or SGST. ITC of CGST should be utilized for Liability of CGST. Similarly, ITC of SGST should be utilized for Liability of SGST .Read More- GST Input Tax Credit (ITC) Set-off Rules in GSTR-3B with examples

Mostly confusion arises, when taxpayer has IGST credit, but don’t have IGST liability. In many such cases, IGST is utilised for the payment of CGST only, hence, due to this, one may have more credit of CGST and less of SGST. To overcome such situation, one should divide IGST credit by 2 and distribute the same between CGST and SGST. By following this, CGST and SGST credit will be equal.

One has to surely follow set off rules properly, else there can be many mistakes, which may cause outflow of the money or utilisation of credit in wrong order.

7. IGST sales shown as CGST or SGST or vice a versa

Many a times, place of supply is misunderstood and IGST, CGST or SGST are charged wrongly. This happens, many a times, in case of rental income. Let’s understand this with the following example :

Mr. BabaTax is registered taxpayer in Mumbai, Maharashtra and having any apartment in Pune, Maharashtra. Now this apartment is given on the rent to Mr. Tax Saver on rent, which is registered in Ahmedabad, Gujarat. As, GSTIN of Mr. Tax Saver is having state code of Gujarat, it is considered as inter state supply. And, now Place of supply rules, come in the picture. In this case, place of supply would be place of property, Pune, Maharashtra. Hence, CGST and SGST should be charged by Mr. BabaTax.

These kind of small mistakes are done by the taxpayers, which should be corrected in timely manner with proper consultation.

8. Wrongly taken excess or short credit

Due to clerical error many a times wrong credit has been availed. Such wrong availment should be rectified in the next month on timely basis. If excess credit is availed, it should be reduced from applicable credit for the next month. Or if short credit has been availed same should be availed till GST return of September of the next financial year being filed.

So care should be taken to claim the left out ITC during such period. These mistakes normally come to the notice while comparison is made with books of accounts or filling of annual return.

GST Input Tax Credit Calculator

9. Wrong declaration of Sales and output tax liability

Again, like ITC, clerical error may happen in this case as well. Hence, one should be really careful while entering amounts in the relevant point of the relevant table.

10. Sales return in GSTR 3B

Sales return has been really most trending topic many a times, due to it’s nature and the way of presentation in the return. Let’s understand this with one example.

Read Also: What are the GST Penalties and prosecution?

In the month of June 2020, Mr. Robin registered in Mumbai, Maharashtra had made sales of Rs. 1 Lakh and IGST of Rs. 18,000 has been charged  to Mr. Sharma registered in Jaipur, Rajasthan. Now, in the month of August 2020, there was sales return from the above sales amounting Rs. 50,000 and IGST 9,000. But there was no interstate sales.

As we all know, one can’t show negative figures in outward supply or IGST in 3. (1) (a) of the return, so this sales return can’t be shown in the month of August 20. This has caused much hard work for taxpayers. One has to adjust this sales return in the next month, when IGST sales would happen. Read Also- FAQs on Sales Return under GST

For any questions, you may reach us at Discussion Forum


The author of the above article is CA Ankita Gandhi.

Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon. 
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