Introduction of quarterly returns & CGST Amendment Rules

The Central Board of Indirect Taxes and Customs (CBIC) has issued several Notifications on 10^th November, 2020 for the below matters:

1. Introduction of Thirteenth amendment (2020) to the CGST Rules, 2017 for notification of due dates for returns

2. Granting extension of the due date for Form GST ITC 04 and notification of due date for furnishing Form GSTR 1

3. Notify special procedure for making payment of 35% as tax liability in first two month for Quarterly filers

4. Implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 100 Cr from 01st January 2021.

The summary of such notifications along with link to said CGST notifications is as under –

1. Notification of furnishing return for Outward Supplies in Form GSTR 1 

Notf No and Date	Summary of Notification	Effective Date
81/2020 – Central Tax dated 10th Nov, 2020	Notify amendment carried out in sub-section (1), (2) and (7) of section 39 which deals with furnishing of returns for Regular Taxpayer and  Composition Dealers and also Payment of Taxes	10th November 20

2. 82/2020 – Central Tax dated 10th Nov, 20 –Notification of Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020 – Several amendments are proposed to the CGST Rules with respect to furnishing of returns. Below is the summary of said changes –

Rule 59 – Form and manner of furnishing details of outward supplies – With effect from 1^st Jan 2021 – 

Following amendments has been proposed –

1. The return in form GSTR 1 may be filed monthly or quarterly depending on turnover.

2. For quarterly filers the return is to be furnished Quarterly in Form GSTR 1. For the first and second months of the quarter (upto a cumulative value of Rs 50 lakhs in each months) shall use invoice furnishing facility (IFF) from 1^st to 13^th of the said month.

3. Details to be furnished in Form GSTR 1 –

Invoice-wise details	Consolidated Details	Debit and Credit Notes
B2B Inter or Intra State Supplies	Rate wise supplies for Inter State supplies to URD (B2C)	DN/CN if issued during the month for invoices issued
invoice > Rs 2.5 Lakhs for URD (B2C) inter-state supplies	invoice < Rs 2.5 Lakhs for URD (B2C) State wise inter-state supplies

4. Details to be furnished in invoice furnishing facility (IFF) by Quarterly Filers – 

Invoice-wise details	Debit and Credit Notes
B2B Inter or Intra State Supplies	DN/CN if issued during the month for invoices issued

Rule 60 – Form and manner of ascertaining details of Inward supplies – With effect from 1^st Jan 2021 –

1. Following amendments has been proposed: Details to be made available in GSTR 2A – 

Details	Form Details	Furnished by	Part of GSTR 2A
Outward Supplies	GSTR 1 or IFF	Regular Taxpayer	Part A
Invoice-wise details	Form GSTR 5	Non Resident Taxable Person	Part A
Invoice-wise details	Form GSTR 6	Input Service Distributor	Part B
Details of TDS – GST	Form GSTR 7	GST TDS Deductor	Part C
Details of TCS – GST	Form GSTR 8	GST TCS Deductor	Part C
Details of IGST paid on Import of goods or goods brought in DTA from SEZ or SEZ developer on Bill of Entry	—	Tax-Payer	Part D

Details to be made available in GSTR 2B – Form GSTR 2B notified.

Details	Form Details	Furnished by
Outward Supplies	GSTR 1 or IFF	Regular Taxpayer
Invoice-wise details	Form GSTR 6	Input Service Distributor
Details of IGST paid on Import of goods or goods brought in DTA from SEZ or SEZ developer on Bill of Entry	—	Tax-Payer

1. Availability of GSTR 2B on common portal –

2. For first and second month of the Quarter – a day after the due date of the Form IFF; or in FORM GSTR-1, whichever is later

3. For Third month of the Quarter – a day after the due date of furnishing FORM GSTR-1

4. Insertion of Sub Rule 5 in Rule 61 – Due date for monthly Form GSTR 3B – With effect from 1^st Jan 2021 –

Turnover in Previous FY	Time Limit for furnishing GSTR 3B
Aggregate turnover exceeding five crore rupees in the previous FY	20th day of month succeeding such month
Aggregate turnover of up to  five crore rupees in the previous FY (CAT 1 States) For the months of Oct 20 to Mar 21	22nd day of month succeeding such month
Aggregate turnover of up to five crore rupees in the previous FY (CAT 2 States) For the months of Oct 20 to Mar 21	24th day of month succeeding such month

Rule 61 – Due date for furnishing QUARTERLY Form GSTR 3B – With effect from 1^st Jan 2021 –

Turnover in Previous FY	Time Limit for furnishing GSTR 3B
Aggregate turnover of up to  five crore rupees in the previous FY (CAT 1 States) For the months of Oct 20 to Mar 21	22nd day of month succeeding such Quarter
Aggregate turnover of up to five crore rupees in the previous FY (CAT 2 States) For the months of Oct 20 to Mar 21	24th day of month succeeding such Quarter

CAT 1 States – Chhattisgarh, MP, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, AP, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep

CAT 2 States – Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, WB, Jharkhand or Odisha, the UT of J&K, Ladakh, Chandigarh or Delhi

Payment of Taxes for taxpayers filing Quarterly GSTR 3B –

Frequency of Filing	Payment of Tax	Due Date
Monthly Filers	Monthly in form GSTR 3B	Date for filing GSTR 3B
Quarterly Filers – First 2 months of the Quarter	GST PMT – 06	25th day of month succeeding such month
Quarterly Filers – third month of the Quarter	Form GSTR 3B	Date for filing GSTR 3B

Rule 61A – Manner of Opting for furnishing QUARTERLY Returns –

Selection of option for frequency of Filing	Option	Due Date of Selection
Option for filing Quarterly Return	Quarterly Selection of option	1st day of Second month of preceding Quarter to Last day of first month of quarter for which option is exercised

1. Quarterly Option once selected shall continue on Quarterly basis for future tax periods unless –

2. becomes ineligible for furnishing the return on a quarterly basis as per the conditions and restrictions notified in this regard; or

3. opts for furnishing of return on a monthly basis, electronically, on the common portal;

A registered person shall not be eligible to opt for furnishing quarterly return in case the last return due on the date of exercising such option has not been furnished

A registered person, whose aggregate turnover exceeds 5 crore rupees during the current FY, shall opt for furnishing of return on a monthly basis, from the first month of the quarter, succeeding the quarter during which his aggregate turnover exceeds 5 crore rupees.

1. Declaration of HSN on GSTR 1 –

Mandatory declaration of specified number of digits of HSN code for goods or services on GSTR 1 as may be specified in the notification issued from time to time under proviso to rule 46 of the said rules.

2. Notification of Due Date for furnishing return for Outward Supplies in Form GSTR 1 

Notf No and Date	Summary of Notification	Due Date	Effective Date
83/2020 – Central Tax dated 10th Nov, 20	Monthly Form GSTR 1	11th day of month succeeding such month	1st January 2021
	Quarterly Form GSTR 1	13th day of month succeeding such month

Notification of class of persons for furnishing returns – Monthly or Quarterly – 84/2020 – Central Tax dated 10^th Nov, 20

Class of Registered Persons	Deemed Option
Registered persons having aggregate turnover of up to Rs 1.5 crore, who have furnished FORM GSTR1 on quarterly basis in the current financial year	Quarterly Return
Registered persons having aggregate turnover of up to Rs 1.5 crore, who have furnished FORM GSTR1 on monthly basis in the current financial year	Monthly Return
Registered persons having aggregate turnover more than 1.5 crore rupees and up to 5 crore rupees in the preceding financial year	Quarterly Return

Notes – i. Taxpayers who have furnished the return for the tax period October, 2020 on or before 30th November, 2020, it shall be deemed that they have opted under sub-rule (1) of rule 61A of the said rules for the monthly or quarterly furnishing of return

A registered person whose aggregate turnover crosses five crore rupees during a quarter in a financial year shall not be eligible for furnishing of return on quarterly basis from the first month of the succeeding quarter

iii. The registered persons may change the default option, during the period from the 5th day of December, 2020 to the 31st day of January, 2021 

5. Notification of special procedure for making payment of 35% as tax liability in first two month for taxpayers option to furnish Quarterly Returns – 85/2020 – Central Tax dated 10^th Nov, 20 – With effect from 1^st Jan 2021 

Frequency	Amount of Deposit	Manner of Computation
Quarterly	35% of the Tax	Liability paid by debiting the electronic cash ledger in the return for the preceding quarter if return is furnished quarterly
Monthly	last month of the  immediately preceding  quarter	Liability paid by debiting the electronic cash ledger in the return for the last month of the immediately preceding quarter if return is furnished monthly

 No Tax to be deposited – 

1. For the first month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the tax liability for the said month or where there is nil tax liability

2. for the second month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the cumulative tax liability for the first and the second month of the quarter or where there is nil tax liability 

Note –  Special procedure shall not be available unless Taxpayer has furnished the return for a complete tax period preceding such month

6. Rescinding Notification No 76/2020- Central Tax dated 15^th October, 2020  – 86/2020 – Central Tax dated 10^th Nov, 20  – The said notification notified the due dates for furnishing GSTR 3B for the tax periods October 2020 to March 2021.

7. Notification extending the due date for furnishing of FORM ITC-04 for the period July- September 2020 till 30th November, 2020 – 87/2020 – Central Tax dated 10^th Nov, 20 The due date for said form was 25^th October 2020.

 8. Notification for implementing e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 100 Cr from 01st January 2021 – 88/2020 – Central Tax dated 10^th Nov, 20 For taxpayers having aggregate turnover exceeding Rs 500 Crores, e-invoicing was implemented from 1^st October, 2020.

*****

You can contact us at: Email: [email protected] Mobile No. +91-9503031788

Disclaimer: The content of this document is for general information purpose only. TaxMarvel shall not accept any liability for any decision taken based on the advice. You should carefully study the situation before taking any decision.