GSTR 3B filing _ A step by step guide

Open your GST software.

Access the GSTR3B section.

Select your GSTN from the dropdown menu.

Choose the return period. For this example, we'll select December 24th.

Normally, you'd activate OTP by updating your credentials. However, we'll skip this step for now.

Verify your entire GSTR3B form to ensure the gross liability is correct and no modifications are needed.

If everything is accurate, proceed to file. Click on Proceed to next step.

Activation of OTP is mandatory, but we'll skip this step in this demonstration.

Navigate to the tax calculation page. Once you've activated the OTP, proceed directly to this page to begin your tax calculations.

Click on View & change tax calculation. This action allows you to verify how your tax liability has been calculated within the entire GSTR 3B system.

Choose a calculation logic. We provide three different calculation mechanisms tailored to your specific needs. Select the one that best suits how you want to verify your tax calculations.

Understand the calculation logics. We offer the Clear Tax GST calculation, which is highly recommended for its comprehensive approach. Here's what it includes:

- Total Tax Liability: This shows the various liabilities calculated, which collectively determine the total tax to be paid.

- Tax Payable: This includes taxes payable other than those under reverse charge, displayed here as 1,69,06,150.

-Other Payables: This section includes tax payable for suppliers under section 95, reverse charge tax payable, interest payable, and late fee payable.

- Total Tax to be Paid: This is calculated by adding all payable amounts from the previous steps (A + B + C + D + E).

- Total Amount: Here, you'll find the combined values from section A1A, showing the total tax amount due.

Review the ITC claimed and credit ledger balance.

First, verify your ITC Available data. Currently, it displays as zero because there is no available data.

Check your Electronic Credit Ledger. You should see a balance of 6,15,326, indicating the amount available for credit.

Calculate your Total Tax to be Paid through ITC. This total is the sum of values from section 2 (ITC Available) and section 3 (Electronic Credit Ledger).

Refer to Table 6.1 in GSTR 3B for the payment of tax details. This section will outline the total tax to be paid and how much of that will be covered by ITC, which includes contributions from both section 2 and section 3.

Review the bifurcation of your taxes, including Integrated Tax, CGST, SGST, and Cess. Notice how CGST and SGST are equally divided.

Scroll down to the section where taxes need to be paid in cash. This includes suppliers under section 95, reverse charge taxes, interest, and late fees.

Identify the total tax amount that needs to be paid in cash by adding the values from the relevant sections.

Calculate the total tax to be paid in cash by combining the amounts from sections 5, 6, 7, 8, and 9.

Check the cash ledger balance, which shows a tax amount of 74 rupees. Include any additional components like penalty amount, interest, and other fees to see the total utilizable cash balance.

Determine the additional cash required by observing the total tax that needs to be paid in cash, here it is 10,80,750.

Understand the Clear Tax Calculation's flexibility. It evaluates your data first and, if feasible, attempts to evenly distribute your tax amount between IGST, CGST, and SGST to minimize your financial liability.

Compare this approach with the government calculation, which follows a predetermined and rigid logic.

Consider the potential benefits. Depending on your specific data, Clear Tax Calculation might result in a lower financial liability compared to the government calculation, thus potentially saving you money on taxes.

Remember, the choice between using Clear Tax Calculation or government calculation depends entirely on your preference. However, if flexibility and the potential for reduced tax liability are important to you, Clear Tax Calculation could be the more advantageous option.

To verify how the liability has been calculated, we discuss both the cleartax calculation and the government calculation. These calculations are mostly similar.

We also incorporate user input, which is a new addition to the process.

If you need to edit the values and perform the calculation based on your understanding, use the user input option.

Verify the tax calculation by selecting the preferred calculation mechanism that suits your specific needs.

Ensure your data is correct and the entire calculation is accurate.

Upload your data to the portal by clicking Upload to GSTN. An OTP (One Time Password) is required for this step.

Note:- You can upload your calculations as many times as needed until you're confident. This will only update the calculations on the GST portal and will not file the GSTR-3 so feel free to make changes as required

Once you've successfully uploaded your data without any errors, click on refresh ledger balance.

Log in to the GSTN portal for final verification of your data, challan creation, and payment. It is important to complete these steps directly on the government portal.

Note: Challan creation for GSTR-3B is not supported by the GSTN department through third-party software. Therefore, our software cannot generate the challan — you need to complete this step manually on the GST portal.

Click on Post credit to ledger and file GSTR-3B.

Go to GSTN portal for the final filing processes.