An employee uses a calculator in a store. (Photographer: Anthony Kwan/Bloomberg)

GSTN Simplifies GSTR-3B Filing Process

The GST Network today said it has simplified filing of sales return form 3B whereby businesses will now be able to see input tax credit balance on the return forms.

"One area where a few taxpayers were making errors frequently was utilisation of input tax credit and computation of balance payment in cash. By improving the user interface and redesigning the process, filing of GSTR-3B has been made considerably more convenient," GSTN Chief Executive Officer Prakash Kumar said.

In a statement, the GSTN said that all information required has been placed at one place for the taxpayer filing the return.

Changes to GSTR 3B as analysed by PWC
Changes to GSTR 3B as analysed by PWC

Input Tax Credit Balance

The current balance of input tax credit and cash registers are shown on the top of the screen, below which tax head-wise liability, suggested best way to utilise input tax credits, and the balance amount to be paid in cash are shown in a single view.

The suggested input tax credit utilisation can be edited by the taxpayer. Once input tax credit utilisation is changed, the amount required to be paid automatically gets changed, it said.

Besides, changes have been made in the way challan is to be prepared for making payments in cash. Earlier, the challan had to be manually filled with the amount to be paid in cash.

Now the challan gets prepared with cash amount required to be paid after taking into account the balance available in cash ledger and suggested utilisation of input tax credit in the table, with a click of a button.
GSTN Statement

Earlier some taxpayers used to put tax amount under wrong head while filling up challan manually. The possibility of that error will be completely eliminated with the new system as there are no chances of the payment of tax appearing under the wrong head, the statement added.

"This is a welcome step towards making the tax filing process more user friendly. It makes the system less rigid and reduces the chances of inadvertent errors," partner and leader - indirect taxes at PwC, Pratik Jain said.

It also indicates that the government intends to continue with monthly GSTR-3B returns post March 2018 as well, Jain added.