Today, an Announcement was made in the Press Conference after the 22nd Meeting of GST Council that, for small businesses, the return filing as well the tax payment will be Quarterly.
It was clearly stated that, the said Announcement will operationalize from the quarter beginning from October, 2017.
Later on, in the same Press Conference, it was stated that, the GSTR-3B will have to be filed Monthly by all business (including small businesses) till December, 2017.
However, it was not clarified as to whether the small businesses will have to pay the Tax (on a monthly basis) before uploading their monthly GSTR-3B?
Notably, as per the current practice, the tax payment has to be made first before uploading GSTR-3B. So, if for a moment, it is assumed that, the Monthly GSTR-3B will be uploaded only after making Monthly Tax Payments, then the entire purpose of giving effect to the new scheme of filing Quarterly Returns along with Quarterly Tax Payments (for Small Businesses) will get lost as the Small Tax Payers would already have paid their Monthly Taxes at the time of filing their Monthly GSTR-3B.
Therefore, now it is imperative on the part of Government/ GST Council to issue an appropriate clarification regarding this Confusion as to “Whether the Small Businesses will have to pay Monthly Taxes before filing their Monthly GSTR-3B till December, 2017?”
Further we hope that GST Website will keep pace with Amendments made by GST Council, which is till now not the case as we have seen in case of delayed filing of GSTR-3B, where Penalty been levied despite waiver of the same by Government.
Mayur R. Gadhia