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GST Forms

GSTR-3B — Monthly Summary Return

GSTR-3B is where you calculate and pay your GST. Here is how the net tax is computed, how GSTR-2B limits ITC claims, and how the cash ledger works.

Introduction

GSTR-3B is the form where every GST-registered person declares their total tax liability and pays GST. It is the return that closes the tax period. While GSTR-1 is your sales register and GSTR-2B is your ITC statement, GSTR-3B brings both together: output tax minus input tax credit equals net GST payable.

If you do not file GSTR-3B by the 20th of the following month, you pay ₹50 per day in late fees plus 18% per year interest on any unpaid tax. Filing on time is one of the most important GST compliance obligations.

Key concepts

Net tax payable

GSTR-3B calculates net GST as: output tax (CGST + SGST + IGST) minus input tax credit (CGST + SGST + IGST). The result is what you pay or what the government refunds.

Eligible ITC from GSTR-2B

GSTR-2B is the system-generated statement of ITC your suppliers declared. You can only claim ITC that appears in GSTR-2B for the relevant period.

Cash vs ITC payment

If ITC is insufficient to cover the GST owed, you pay the balance in cash from your electronic cash ledger. You cannot pay cash to increase your ITC balance.

Nil return filing

Even when you have no sales, no purchases, and no GST to pay, you must still file a Nil GSTR-3B. Failing to file even a Nil return attracts the same late fee as a regular return.

How GSTR-3B net tax is calculated

Field Source
Total taxable value (inter-state) From your GSTR-1 inter-state sales
IGST collected IGST on inter-state sales from GSTR-1
CGST + SGST collected Intra-state sales from GSTR-1
Eligible ITC (CGST / SGST / IGST) Auto-populated from GSTR-2B
Net GST payable Output tax minus ITC (if ITC < output, pay balance in cash)

Frequently asked questions

How is GSTR-3B different from GSTR-1?
GSTR-1 is where you report individual invoices (your sales register). GSTR-3B is where you pay tax — you enter totals from GSTR-1, check the ITC from GSTR-2B, and pay whatever GST is outstanding. GSTR-1 data auto-populates GSTR-3B in the portal.

Can I file GSTR-3B without filing GSTR-1?
No. GSTR-3B requires GSTR-1 to be filed first. If GSTR-1 is filed late, GSTR-3B for that period cannot be filed until GSTR-1 is filed. Both returns have late fees for missing the deadline.

What is an electronic cash ledger?
The electronic cash ledger is a prepaid GST account on the GST portal. You deposit GST in advance via net banking, NEFT, or RTGS. When you file GSTR-3B, the portal uses this balance to pay your GST liability. ITC cannot be used to pay late fees — only cash ledger can.

What is the late fee for not filing GSTR-3B?
₹50 per day (₹20 per day for NIL returns) up to a maximum of ₹10,000 per return. Interest at 18% per year also applies on any unpaid tax from the due date. Both fees accumulate until the return is filed.

Where do I file GSTR-3B?
GSTR-3B is filed on the GST portal at gst.gov.in. Go to Services → Returns → GSTR-3B, select the tax period, review the auto-populated data, and pay any GST due before submitting.

Sources

Last reviewed by FinWiz24 Research Desk.