GSTR-3B Filing

GSTR-3B is a monthly return that must be filed by every GST-registered business. It contains a consolidated summary of outward supplies, inward supplies, and the Input Tax Credit (ITC) available.

The due date for filing GSTR-3B is the 20th of the following month. For example, if you are filing the return for November, the last date for filing is 20 December.

All businesses registered under GST are required to file GSTR-3B. However, the following categories of taxpayers are exempt from filing this return:

Input Service Distributor (ISD)
Composition dealer
Non-resident taxable person
E-commerce operator required to collect Tax Collected at Source (TCS)

Prerequisite: To file GSTR-3B, you must enable API access for Zoho ERP in the GST portal.

Mark the Previous Return as Filed

Before filing your current GSTR-3B return, you must ensure that the previous GSTR-3B return has been filed. If the previous GSTR-3B return was filed outside the system, you can mark it as filed before proceeding. To mark the return as filed:

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Select the return period for which you want to generate the return under GST Summary for.
Click View Summary next to the GSTR-3B Summary section.
Navigate to the Filing tab and click Mark as Filed.

Note: This requirement does not apply when filing the return for July 2017, as there was no GST return period before it.

Update ITC Reversal

Note: The Eligible ITC table has been updated as per the circular provided by the Central Board of Indirect Taxes and Customs (CBIC).

Now that you have marked your previous return as filed, you can proceed to file the return for the current month. Before pushing the transactions to the GST portal, ensure that you have entered the ITC reversal in the GSTR-3B summary. To update ITC reversal:

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Select the return period for which you want to generate the return under GST Summary for.
Click View Summary next to the GSTR-3B Summary section.
In the Push to GSTN tab, scroll down to the Eligible ITC table.
Click Edit in the row (B) ITC Reversed.
In the Edit ITC Reversed pop-up, enter the reversed ITC in the respective cells.
Click Save.

You will see a confirmation message indicating that the ITC reversal was updated successfully. The reversed ITC will also be reflected in the table.

Reclaim ITC Reversed

If you have reversed ITC in a previous return, you can reclaim the applicable ITC in the current return. Here’s how:

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Select the return period for which you want to generate the return under GST Summary for.
Click View Summary next to the GSTR-3B Summary section.
In the Push to GSTN tab, scroll down to the Eligible ITC table.
Click Edit next to the ITC reclaimed which was reversed under Table 4(B)(2) which was reclaimed in earlier tax period sub-row of the row ITC Other Details.
In the pop-up that appears, enter the ITC reclaimed in the respective cells and click Save.

You will get a notification that the ITC reclaim was successful. The ITC reclaimed will also be updated in the table.

Note: Once you update the details in the Edit ITC Reclaimed pop-up, you must update the same details in the All other ITC sub-row of the ITC Available row. To do this, click Adjust ITC next to the All other ITC sub-row of the ITC Available row and enter the same details in the Adjust All other ITC pop-up.

Note: The data in the sub-row Ineligible ITC under section 16(4) and ITC restricted due to POS provisions of the row (D) Other Details will be auto-populated. Zoho ERP auto-populates this data from the ITC not available section in the GSTR-2B auto-drafted ITC statement.

Push Transactions to GSTN

Before you push your transactions to the GSTN, note that it is mandatory to answer a few filing-related questions on the GST portal. Ensure that you answer these questions before pushing your transactions to the GST portal. Here’s how:

Log in to the GST portal.
Go to Dashboard and select Return Dashboard.
Select the Financial Year, Quarter, and return filing Period, then click Search.
Scroll down to find Monthly Return GSTR-3B.
Click Prepare Online and answer the questions displayed on the screen.
Click Next.
Click Close in the System Generated Summary pop-up.

Once you have answered the questions, you can push your transactions from Zoho ERP. You can perform this action multiple times, depending on updates to your transactions. For example, if you update your transactions weekly on the GST portal, you can push the transactions every week based on your organization’s preferences.

To push your transactions to the GSTN from Zoho ERP:

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Select the return period for which you want to generate the return under GST Summary for.
Click View Summary next to the GSTR-3B Summary section.
In the Push to GSTN tab, click Push to GSTN.
Verify your GST details and confirm the action by clicking Push to GSTN in the confirmation pop-up.
Enter the OTP sent to your GSTN registered mobile number and email address.
Click Verify and Push to push the transactions to the GST portal.

Your transactions will be pushed to the GST portal.

Pay Taxes

The next step is to save and preview your data on the GST portal and proceed with paying your taxes. To do this:

Log in to the GST portal.
Go to Dashboard and select Return Dashboard.
Select the Financial Year and Return Filing Period, then click Search.
Click Prepare Online under the GSTR-3B return. You will now see the values for the respective sections in the GSTR-3B summary.
Click Proceed to Payment if no changes are required in your return.

You will then be redirected to the Payment of Tax page where you can view your cash ledger and ITC ledger to check the available balances. If your liability is greater than the available ITC and Utilisable Cash Balance, you can view balance amount to be paid in cash in the Additional Cash Required column and pay the deficit amount by creating a challan.

To create a challan:

Click Create Challan to pay the deficit tax amount.

The tax liability, along with any late fees, penalties, or interest, will be auto-filled on the challan creation page.

From the Payment Modes dropdown, select the payment mode you want to use to make the tax payment.
Click Generate Challan.

Once you generate the challan, you can choose to make your tax payment either directly from Zoho ERP or through the GST portal. To make tax payments from Zoho ERP, you need to integrate it with either ICICI Bank or HSBC Bank. Once integrated, you can make GST payments via ICICI bank or HSBC bank.

If you want to make the payment through the GST portal, you can do so immediately after generating your challan. To make the payment:

On the Payment of Tax page, select the payment mode you want to use from the Payment Modes dropdown.
Click Make Payment.
Once you’ve made the payment, click Continue.
Click Make Payment/Post Credit to Ledger.
Click Yes in the confirmation pop-up to offset your tax liability.
Click OK in the Offset Successful pop-up.

File the Return

Once you’ve paid your taxes and cleared all your liabilities, you can file your GSTR-3B on the GST Portal. Here’s how:

On the Payment of Tax page of the GSTR-3B return, click Proceed to File.
Check the declaration box on top of the page and select Authorised Signatory to file the return.
You can now file your GSTR-3B return either through Electronic Verification Code (EVC) or Digital Signature Code (DSC).

Once you’ve completed the above steps, you need to mark the return as filed in Zoho ERP. Here’s how:

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Select the return period for which you want to generate the return under GST Summary for.
Click View Summary next to the GSTR-3B Summary section.
Navigate to the Filing tab and click Mark as Filed.

Record the Tax Paid in Zoho ERP

Once you’ve paid your taxes and cleared all liabilities on the GST portal, you must record the GST payment details in Zoho ERP and post a manual journal entry to convert the previous month’s reverse charge liability into ITC for the current month.

Record GST Payment Details in Zoho ERP

After making the payment in the GST portal, you will have to record it in Zoho ERP. Here’s how:

Note: If you’ve made the payment directly from Zoho ERP via ICICI Bank, it will be recorded automatically.

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Select the return period for which you want to generate the return under GST Summary for.
Click View Summary next to the GSTR-3B Summary section.
Navigate to the GST Payment tab and click Record Payment.

(or)

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Navigate to the GST Payments tab.
Click Record Payment.
In the Record GST Payment pop-up:
- Enter the Payment Date.
- Select the Paid Through account.
- Enter the Reference Number for the payment made.
- Enter the Challan Date and CPIN(Common Portal Identification Number) that’s available in the challan you had generated.
- Enter the details of the Tax Liability such as CGST, IGST, SGST and CESS.
- Click Record Payment.

Record a Manual Journal

To record a manual journal entry to convert the previous month’s reverse charge liability into ITC for the current month:

Go to Accountant on the left sidebar.
Click the Journals dropdown in the module bar and select Manual Journals.
Click + New.
Enter all the necessary details.
Select the Reverse Charge Tax Input but Not Due account as the Credit account, and the relevant input tax account such as Input IGST, Input SGST, Input CGST, or Input Cess as the Debit account.
Click Save.

Unfile the Return

Once you file the GSTR-3B return for a specific period, you won’t be able to modify the data in the return. However, if you need to make changes to a filed return, you can mark the return as unfiled in Zoho ERP and make the necessary corrections. Here’s how:

Go to Accounting on the left sidebar.
Click the Filing & Compliances dropdown in the module bar and select Taxes & Filing.
Select the return period for which you want to generate the return under GST Summary for.
Click Mark as Filed next to the GSTR-3B Summary section.
In the pop-up that appears, click Mark as Unfiled.

The return will be unfiled, and its status will be updated to Unfiled. You can then make the necessary corrections. Make sure to file the return again after making the required changes.