GSTR 3B Filing Process: A step by step guide

Log into the Clear tool using your credentials. Ensure you have your username and password ready to access the platform.

After logging in, you'll land on the Clear Finance Cloud dashboard. This is the central hub for managing your financial data.

From the main menu, go to the GST Dashboard. This section is specifically designed for managing GST-related tasks.

In the GST Dashboard, click on GSTR3B to start the filing process. This option will take you to the GSTR3B filing interface.

Select the return period for which you're filing. For example, choose February 25th as the return period.

Decide whether to ingest data at the PAN level or GSTN level. For this tutorial, select PAN to proceed with data ingestion.

Connect your GSTNs by entering your GST username, password, and captcha. You'll receive an OTP on your registered mobile number. Enter the OTP to complete the connection.

Once the GSTNs are connected, download the data from the GST portal. Wait until the data download is fully completed to ensure accuracy.

Click Skip to move to the next step. This will take you to the data ingestion phase.

You're now ready to begin Step 1 of GSTR3B, which focuses on data ingestion.

Step 1: Use the import file capability to ingest data. Start by clicking on the Purchase register and then selecting import file.

Step 2: Choose the Clear Tax purchase template, which is the default template. Alternatively, you can use your own register or data extracted from your ERP. If you're using a custom register, you'll need to perform custom mapping, which we'll explain later.

Step 3: Download the Clear Tax purchase template. Once downloaded, open the file to review its structure.

Step 4: Understand the template's purpose. It's designed to upload your purchase register, allowing you to include both invoices and credit/debit notes in the same file. This eliminates the need for separate files for different document types.

Step 5: Fill in the mandatory fields in the template, such as the invoice date and number. These fields are essential for accurate data ingestion.

Step 6: If available, enter the supplier's name and GSTN. While the supplier state isn't mandatory, it's recommended to include it for better data accuracy. The system automatically fetches the state from the first two digits of the supplier's GSTN.

Step 7: Enter the taxable value. For example, input a taxable value of 100.

Step 8: Specify the tax rate. For instance, set the Goods and Services Tax (GST) rate at 2.5%.

Step 9: The system will automatically calculate the Central GST (CGST) amount based on the taxable value and CGST rate you've provided.

Step 10: Double-check the rates and amounts to ensure they're accurate.

Step 11: Fill in the tax details. Under the ITC claim type, select one of the following options: Input, Input Service, Capital Good, Ineligible, or None.

Step 12: If tagging an invoice or a line item as ineligible, select Ineligible. For other classifications like Input, Input Service, or Capital Good, choose the respective option.

Step 13: By default, the system treats the input as "Input" if no specific option is selected. Ensure you review this to avoid misclassification.

Step 14: For invoices or line items used exclusively for exempt, non-business taxable, common credit, or ineligible purposes under section 17.5, tag them accordingly. This ensures proper classification and compliance with tax regulations.

Step 15: Enter the details for credit notes. Provide the credit note date and number, and tag it as "C". The system will automatically consider these values as negative, reflecting the credit adjustment.

Step 16: For debit notes, tag them as "D" to differentiate them from other entries. This ensures accurate reporting and classification.

Step 17: For exempt supplies, nil-rated supplies, and non-GST supplies, mark the appropriate columns. This step is crucial for ensuring that these supplies are correctly categorized and reported in compliance with tax laws.

Step 18: Write "Y" in the AF column if the document is a bill of supply. This indicates a "Yes" response to the question, "Is this a bill of supply?" and ensures proper classification.

Step 19: Tag the supply type as either nil-rated, exempt, or non-GST inward supply. For example, if you tag it as a nil-rated supply, it will be included in the GSTR3B reporting based on this input. Proper tagging is essential for accurate tax reporting.

Step 20: If reverse charge applies to an invoice, tag it as "Y". If the invoice is taxable under forward charge, there's no need to tag it. This distinction is important for compliance with reverse charge mechanisms.

Step 21: Tag the document if it involves the import of goods or services. Specify if the goods or services are from an SEZ (Special Economic Zone). This information is critical for accurate GSTR3B reporting and ensures compliance with import-related tax regulations.

Step 22: For the import of services liable to reverse charge, ensure to tag "Y" for reverse charge and select 'import of services'. This step ensures that the tax liability is correctly accounted for.

Step 23: If the input type is goods, fill in the bill of entry details, including the bill of entry port code, number, and date. This is mandatory for proper documentation and compliance with import regulations.

Step 24: Enter the GSTN details of the organization where the invoices were received. If you're managing data at a PAN level and have operations across 24 to 27 states, mention each state's GSTN for the relevant documents. This ensures accurate state-wise reporting.

Step 25: Start by fetching the GSTN state code from the first two digits of your GSTN. This step is crucial for accurate GSTR3B reporting and ensures that the state code aligns with the GSTN.

Step 26: Optionally, fill in the voucher number, voucher date, ERP source system, and ERP company code if available in your register. While this information isn't mandatory, it enhances data visibility and traceability.

Step 27: Once you've filled in the optional details, return to the tool to begin data ingestion. This step ensures that all necessary details are in place before proceeding.

Step 28: Ingest the file into the tool. During ingestion, the tool performs several validations, such as checking the validity of the supply GSTN, its 15-digit format, and, if applicable, the bill of entry details for imported goods. These validations ensure data accuracy and compliance.

Step 29: After validation, the tool ingests the data. This step confirms that the data is ready for further processing and reporting.

Step 30: Verify the accuracy of the ingested data for a specific GSTN. This step ensures that the data aligns with the source documents and is free from errors.

Step 31: Confirm that the ingested data is correctly reflected in the Data Overview section. This step provides a summary of the data and ensures that all entries are accounted for.

Step 32: In the Data Overview, click on 'Documents', select 'Purchases', and review the data for a specific month, such as the PR data ingested for February 25th. Check the completeness and accuracy of the data to ensure compliance.

Step 33: In the Document section, review important details like taxable value and tax amount. This step ensures that all financial entries are accurate and ready for reporting.

Step 34: Download the report, available at both line item and document levels. - To access the report, navigate to the Reports section in the tool. - Choose whether you want to download the report at the line item level or the document level based on your analysis needs. - Click the Download button, and the report will be saved to your system in the selected format.

Step 35: Utilize multiple filters in the tool to check specific aspects of your data, such as input of goods, B2B and B2C invoices, or RCM invoices. - Open the Filters section in the tool.

- Select the filters relevant to your analysis, such as Input of Goods, B2B Invoices, B2C Invoices, or RCM Invoices. - Apply the filters to refine your data view and focus on the specific details you need to review.

Step 36: Complete the process of ingesting the PR as previously discussed. - Ensure the PR (Purchase Register) is prepared and formatted correctly. - Follow the steps outlined earlier to upload the PR into the tool. - Verify that the data has been successfully ingested before proceeding.

Step 37: Navigate to G settings and locate the template option. - In the tool's main menu, go to G settings. - Look for the Template option under the settings menu. - Click on Template to access the customization options for your purchase template.

Step 38: To customize your purchase template, select purchase and choose the business for which you want to apply the customization. - In the Template section, click on Purchase. - A list of businesses associated with your account will appear. - Select the specific business for which you want to customize the purchase template. - Proceed to make the necessary adjustments to the template.

Step 39: Ingest the register available in your ERP by selecting it. - Locate the Ingest Register option in the tool. - Browse and select the register file from your ERP system. - Upload the file to the tool for processing.

Step 40: The tool will automatically read the data from the register and suggest necessary column headers based on your file. It will show you the current mappings and allow you to modify them if needed. - Once the register is uploaded, the tool will analyze the file and display the column headers. - Review the suggested mappings to ensure they align with your data. - If any mappings need adjustment, click on the respective column header and make the changes.

Step 41: If you need to map a different header, such as changing 'return filing month' to another term, select the desired option. - Identify the column header you want to change. - Click on the header and choose the appropriate term from the dropdown menu or input the new term manually. - Save the changes to update the mapping.

Step 42: For instance, if your register lists 'invoice date' as 'document date', enter document date in the template to ensure proper mapping. - Locate the column labeled 'Invoice Date' in your register. - In the template, replace 'Invoice Date' with Document Date to match the tool's requirements. - Confirm the change to ensure accurate data alignment.

Step 43: Confirm that document date is the header in your template. This will help align the columns from your file with those in the tool, enabling accurate data fetching.

- Double-check the template to ensure Document Date is correctly set as the header. - Verify that all other headers are also mapped accurately. - Save the template to finalize the changes.

Conclude by choosing one of the two methods for file ingestion: using the Cleartax purchase template or a custom template. - Decide whether to use the Cleartax Purchase Template or create a Custom Template based on your business needs. - If using the Cleartax template, download it and format your data accordingly. - For a custom template, ensure it matches the tool's requirements before uploading. - Upload the file to complete the ingestion process.