GSTR -3B Challan Creation and E-Payment Process
A brief guide on how to create GSTR 3B challan
Form GSTR-3B is a simplified summary return that allows taxpayers to submit and discharge their summary GST liabilities for a given tax period. Every tax period, a regular taxpayer is required to file GSTR-3B returns.
New updates in form GSTR-3B
17th May 2022
Due to technical issues in the GSTN portal, the CBDC department has issued GST notification number 05/2022 extending the due date for filing GSTR 3B until 24th May 2022 (revised).
1st February 2022
1. The deadline for making corrections and adjustments in GSTR-3B, as well as claiming any missed Input Tax Credit or ITC for a given financial year, there is no longer a due for filing the following year’s tax return in September. but rather November 30th of the following year, or submission of the annual return, whichever comes first.
2. Under Section 29 of the GST Act, GST registration can be cancelled if GSTR-3Bs are not filed for continuous tax periods.
27th January 2022
GSTR-3B form functionality is now available on the GSTN website, which is a tax calculator for registered taxpayers.”
10th January 2022
GSTN has added a new interest calculator in GSTR-3B on the official GSTN portal.
21st December 2021
1. From 1st January 2022, taxpayers cannot file GSTR-1 if GSTR-3B was not filed for the previous period.
2. From January 1, 2022, GST officers will have the authority to initiate recovery proceedings against taxpayers who under-report sales in GSTR-3B compared to GSTR-1 without any show-cause notice.
E- Payment Process of GSTR- 3B
All regular taxpayers need to file this return until March 2021. You can file your return on GST Portal.
1. Firstly, ensure that you have filled in all the details.
We have written a blog on the process of GSTR-3B preparation which you can find here – Prepare and submit GSTR-3B.
Once all that is done, click on PROCEED TO PAYMENT from below in the official GST Portal.
The cash available as on date and ITC available (ITC of current tax period) are shown in the table.
Then scroll to the right to see the Credit Ledger Balance.
2. Provide the credit amount to be used from the respective credit heads to repay the existing liabilities and amount in cash.
- The system will auto-fill “Tax to be paid through ITC” fields with the amount based on the law relating to credit usage. However, you can edit this ITC utilization but then the cash you have to pay will also change.
- Tax liabilities you have entered in the returns and their credits will be updated in their respective ledgers and seen in the “Tax payable” under the payment section. The updated balance will be displayed under the payment section.
Some of the common situations you may come across during the payment of GSTR-3B are:
- If the cash balance in Electronic Cash Ledger is less than the amount required to repay your liabilities.
Then the available cash balance is used from the Electronic Cash Ledger and additional cash will be displayed in the Additional cash required. So, we need to create a challan by clicking on the CREATE CHALLAN button.
Therefore you will be able to view the additional cash required to repay your liability.
- If the available cash balance in the Electronic cash ledger is above the required cash to settle the liabilities.
There is no additional cash needed for the repayment and zero amount is displayed under Additional cash required. Next, click MAKE PAYMENT/POST CREDIT TO LEDGER to repay your liabilities.
- If the available cash balance in the Electronic cash ledger is above the required cash to settle the liabilities, but due to the ITC utilization principle, you cannot balance the liabilities.
As a result, additional cash required for paying liability will be seen under Addition cash required. A challan for that additional cash is made when you click on the CREATE CHALLAN at the bottom of the page.
You can view the additional cash required for paying the liability when you scroll to the right.
- Click MAKE PAYMENT/POST CREDIT TO LEDGER settle liabilities or to claim credit in case you have no liabilities.
- If there is any change in the previous page, Click BACK and rectify your errors. Then select MAKE PAYMENT/POST CREDIT TO LEDGER to settle your liabilities, as you cannot make any changes later to Form GSTR-3B.
- When we click on MAKE PAYMENT/POST CREDIT TO LEDGER, the GST Portal will check the available Cash ledger balance.
Next, select PREVIEW DRAFT GSTR-3B to view the summary page of Form GSTR-3B before making any payments.
If you have an insufficient balance, select YES from the pop-up message displayed.
Then Create Challan page is displayed.
- In the Tax Liability Details grid, the Total Challan Amount and Total Challan Amount (In Words) are auto-filled with the total amount of payment to be made and it can not be edited.
- Then select your Payment Modes (E-Payment/ Over the Counter/ NEFT/RTGS.)
- Click on GENERATE CHALLAN
- Finally, Challan is generated.
Net Banking: You will be directed to the Net Banking page of your Bank. The amount to be paid will be shown on your Bank’s website. If you want to change the amount, cancel your transaction and then create a new challan.
When your payment is successful, you will be re-directed to the GST Portal where transaction status is displayed.
Over the counter: Take a printout of the Challan and pay using Cash/ Cheque/ Demand Draft within its validity period. After the bank update, the status of the payment will be seen on the GST Portal.
NEFT/ RTGS: With a printout of the Challan and visit the Bank. The Mandate form is then generated. Then pay it by Cheque or debit facility provided by your Bank.
The transaction will be processed by the Bank and RBI will confirm it within 2 hours. The status of the payment will be updated on the GST Portal.
9. After successful payment, a confirmation message will be displayed. Click on YES.
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