1. What should you prepare before filing?
Do not begin by simply copying the previous month's numbers. Prepare the period's sales, purchases, reverse-charge workings, ITC reconciliation, tax payments and previous-period adjustments first.
| Working | What to check | Primary data source |
|---|---|---|
| Outward supplies | Taxable, zero-rated, exempt/nil-rated, non-GST, RCM/Section 9(5), amendments and notes | Sales register + GSTR-1/1A |
| ITC | Eligible ITC, reversals, blocked/ineligible credit and reclaim | Purchase register + GSTR-2B + applicable records |
| RCM | Taxable value and tax liability; eligible credit after applicable conditions | Expense/RCM register + invoices + GSTR-2B where applicable |
| Interest/late fee | Delayed tax and previous-period liabilities | Return history + payment records |
| Payment | Credit ledger, cash ledger and utilisation/payment | GST Portal ledgers |
2. Table 3.1 — Details of outward supplies and inward supplies liable to reverse charge
| Row | Particulars | Total Taxable Value | IGST | CGST | SGST/UTGST | Cess |
|---|---|---|---|---|---|---|
| (a) | Outward taxable supplies other than zero-rated, nil-rated and exempted | |||||
| (b) | Outward taxable supplies to registered persons attracting reverse charge | |||||
| (c) | Other outward supplies (nil rated, exempted) | |||||
| (d) | Inward supplies liable to reverse charge | |||||
| (e) | Non-GST outward supplies |
3.1(a) — Ordinary taxable outward supplies
Consider: taxable domestic outward supplies other than the supplies separately covered by the other rows. Reconcile taxable value and tax with the sales register and filed GSTR-1/1A, including amendments and credit/debit notes affecting the period.
3.1(b) — Outward supplies attracting reverse charge
This row concerns specified outward supplies where the recipient is liable to pay tax under reverse charge. Identify the transaction from the applicable GST provision/notification and ensure it is not accidentally treated as ordinary forward-charge turnover.
3.1(c) — Nil-rated and exempt outward supplies
Use the outward-supply records to identify supplies that are nil-rated or exempt for the relevant tax period. Do not mix these with non-GST supplies merely because no GST is charged.
3.1(d) — Inward supplies liable to reverse charge
Identify inward supplies on which the recipient is liable to pay GST under reverse charge. Work from the RCM register, expense ledger, invoices and other applicable records. The GST Portal currently auto-populates this row from specified GSTR-2B data; review the amount against your own RCM workings.
3.1(e) — Non-GST outward supplies
Report outward supplies that are outside the GST levy/non-GST as applicable to the return's classification. Do not automatically put every exempt supply here.
3. Table 3.1.1 — Supplies notified under Section 9(5)
This table is for specified supplies through electronic commerce operators where tax is payable by the ECO under Section 9(5), with separate reporting for the ECO and the registered person making the specified supplies.
| Row | Description | Taxable Value | IGST | CGST | SGST/UTGST | Cess |
|---|---|---|---|---|---|---|
| (i) | Taxable supplies on which ECO pays tax under Section 9(5) | |||||
| (ii) | Taxable supplies made by registered person through ECO on which ECO is required to pay tax under Section 9(5) |
The GST Portal guidance states that ECOs report applicable supplies in 3.1.1(i), while registered persons making specified supplies through ECOs report them in 3.1.1(ii). The ECO's liability in row (i) is paid in cash and the supplies are not included again in 3.1(a).
4. Table 3.2 — Inter-State supplies to specified recipients
| Category | Place of supply / State or UT | Taxable Value | IGST |
|---|---|---|---|
| Unregistered persons | |||
| Composition taxable persons | |||
| UIN holders |
This table captures relevant inter-State outward supplies to unregistered persons, composition taxable persons and UIN holders. The portal currently auto-drafts specified values from GSTR-1/1A. Review the state-wise figures against the sales register and filed statement.
5. Table 4 — Eligible ITC
Table 4 is where the recipient reports eligible ITC, reversals and other ITC details. Do not simply take the total of the purchase register. First determine eligibility under the GST law, then account for restrictions/reversals.
| Row | Particulars | IGST | CGST | SGST/UTGST | Cess |
|---|---|---|---|---|---|
| 4(A)(1) | Import of goods | ||||
| 4(A)(2) | Import of services | ||||
| 4(A)(3) | Inward supplies liable to reverse charge (other than above) | ||||
| 4(A)(4) | Inward supplies from ISD | ||||
| 4(A)(5) | All other ITC | ||||
| 4(B)(1) | As per rules | ||||
| 4(B)(2) | Others | ||||
| 4(C) | Net ITC available (A minus B) | ||||
| 4(D)(1) | ITC reclaimed which was reversed under 4(B)(2) in an earlier period | ||||
| 4(D)(2) | Ineligible ITC under Section 16(4) and ITC restricted due to place-of-supply rules |
4(A)(1) — Import of goods
Use eligible ITC supported by import documentation, principally the Bill of Entry and applicable records. Cross-check with the system-generated data where available.
4(A)(2) — Import of services
Identify eligible import-of-service transactions and the applicable reverse-charge tax/payment position before taking credit. Keep agreements, invoices and payment/tax records as appropriate.
4(A)(3) — Inward supplies liable to reverse charge
Reconcile RCM liability with eligible ITC. The portal currently auto-populates this row from specified GSTR-2B data on a net basis.
4(A)(4) — Inward supplies from ISD
Use valid ISD documents/records for credit distributed to the registration. Reconcile the amount with the ISD data available to the recipient.
4(A)(5) — All other ITC
This is the major operating bucket for eligible ITC from registered suppliers other than the separately identified categories. The GST Portal currently auto-populates this row on a net basis from specified GSTR-2B data.
4(B)(1) — ITC reversal as per rules
Use this row for reversals required under the applicable GST rules. Maintain a working showing the invoices/amounts and the reason for reversal.
4(B)(2) — Other ITC reversals
Use for other reversals that are required to be reported here. Maintain a clear audit trail showing why the reversal was made and whether it may become eligible for reclaim later.
4(C) — Net ITC available
Conceptually, this is the net amount after the applicable reversals in 4(B). Reconcile it to your ITC working before proceeding to payment/offset.
4(D)(1) — Reclaimed ITC
Report eligible credit reclaimed after an earlier reversal where the conditions for reclaim are satisfied. Keep the original reversal and current reclaim linked in your working papers.
4(D)(2) — Ineligible ITC under specified restrictions
The portal currently auto-populates specified ITC that is unavailable due to Section 16(4) and specified place-of-supply restrictions. Review the auto-populated amount and your own eligibility analysis.
6. Table 5 — Values of exempt, nil-rated and non-GST inward supplies
| Particulars | Inter-State | Intra-State |
|---|---|---|
| From composition taxable persons | ||
| Exempt, nil-rated and non-GST inward supplies |
Use the purchase/expense records to identify relevant inward supplies and classify them correctly. This table is about inward supplies; do not confuse it with the outward-supply reporting in Table 3.1(c) and 3.1(e).
7. Table 5.1 — Interest and late fee
| Particulars | Tax / Interest / Late Fee |
|---|---|
| Interest | |
| Late fee |
Review interest and late fee applicable to the return. For previous-period liabilities, provide the required tax-period breakup where applicable because it can affect system interest computation. The GST Portal provides a RE-COMPUTE INTEREST function where the taxpayer believes the system computation requires recomputation.
8. Table 6.1 — Payment of tax
After finalising liability and eligible credit, the taxpayer discharges the return liability using the prescribed electronic ledgers and payment mechanism.
Do not confuse reporting the liability with discharging the liability. The return declares the summary position; the payment/offset process actually discharges the amounts due.
9. Five reconciliations every accountant should perform
| Reconciliation | Purpose |
|---|---|
| Sales Register ↔ GSTR-1/1A ↔ 3.1 | Confirm outward liability is complete and correctly classified. |
| GSTR-1/1A ↔ 3.2 | Check state-wise specified inter-State supplies. |
| Purchase Register ↔ GSTR-2B | Identify missing, excess, amended and unmatched invoice data. |
| Eligible ITC working ↔ Table 4 | Confirm blocked/reversed/ineligible amounts are excluded or reversed. |
| 3.1 + RCM + ITC ↔ payment/ledger | Confirm the return liability is actually discharged. |
10. What are the risks of wrong GSTR-3B reporting?
| Wrong entry | Possible practical consequence | Control |
|---|---|---|
| Sales understated | Short-payment, interest and demand exposure depending on facts. | Reconcile sales register, GSTR-1/1A and books. |
| Sales overstated | Excess tax payment and correction/reconciliation issues. | Invoice-level review. |
| RCM omitted | Tax short-payment and interest exposure. | Monthly RCM register. |
| Excess ITC claimed | Reversal, interest and other consequences depending on facts and applicable law. | GSTR-2B + books + eligibility review. |
| Required ITC reversal missed | Excess credit remains in return. | Rule-wise reversal working. |
| Wrong IGST/CGST/SGST classification | Tax/return mismatch and correction issues. | Place-of-supply review. |
| 3.1.1 supply duplicated in 3.1(a) | Potential duplicate liability reporting. | Section 9(5) separate check. |
11. What happens to auto-populated values on the GST Portal?
The GST Portal currently keeps auto-populated GSTR-3B values editable. However, the portal highlights certain downward edits to liability tables and upward edits to ITC tables and displays warning messages. The system also allows taxpayers to view the system-computed and edited values.
12. Final filing checklist
- GSTR-1/1A has been reviewed/finalised as applicable.
- Sales register agrees with the return workings.
- RCM register has been checked.
- Purchase Register has been reconciled with GSTR-2B.
- Eligible ITC has been checked for restrictions and reversals.
- 4(A), 4(B), 4(C) and 4(D) have been reviewed.
- Table 3.2 state-wise details have been checked.
- Section 9(5) transactions have been separately checked where applicable.
- Interest and late fee have been reviewed.
- Previous-period liability breakup has been provided where applicable.
- Preview of GSTR-3B has been checked before filing.
- Payment/offset has been verified.
- Filed return and supporting workings have been saved.
13. Use reconciliation before finalising ITC
Use an invoice-level reconciliation process during the month to identify missing invoices, value/tax differences, amendments, credit notes and other exceptions before finalising the ITC position.
→ Open GST ITC Reconciliation Tool
14. GSTR-3B in one view
| Section of return | Main question to ask |
|---|---|
| 3.1 | What outward liability and RCM liability belongs to this period? |
| 3.1.1 | Are there specified Section 9(5) ECO supplies? |
| 3.2 | What relevant inter-State supplies were made to specified recipient categories? |
| 4 | What ITC is genuinely eligible after restrictions/reversals? |
| 5 | What relevant inward exempt/nil-rated/non-GST/composition supplies exist? |
| 5.1 | Is interest/late fee applicable? |
| 6.1 | How will the final liability be discharged? |
Prepared as a practical educational guide. The return structure and portal behaviour described above are based on current GST Portal guidance reviewed for this article.