With effect from 01st January, 2021 the new GST returns regime will be rolled out. Pursuant to the central government’s constant jostling with adverse, trying and demanding economic situations, an effort is being made to provide the small taxpayers some breathing space and easing the compliance burden, quarterly GSTR-3B filing is being implemented from 1st January, 2021 the seeds whereof were sown back in the Finance Act, 2019 when section 39 was proposed to be amended. The government vide numerous notifications on 10th November, 2020 brought into effect its intention to provide the much sought leeway, although in curtailed manner as the tax is still to be paid monthly, in GST compliance to the taxpayers by taking slew of measures the gist whereof is as under:

Firstly, Vide notification number 81/2020 CT, it is provided to implement that the provisions of amended section 39 shall come into force w.e.f 10th November, 2020 i.e the new provisions as to filing of GSTR-3B shall become effective.

Secondly, the small taxpayers have been notified vide notification number 84/2020 CT, which inter alia, provides that the registered person whose turnover in the previous financial year was upto Rs. 5 Crores, (other than the person u/s 14 of IGST Act, 2017) and

-who opts to file return under new rule 61A and

– whose return for the month prior to the month of exercising such option u/r 61A, has been filed;

Shall be eligible to file quarterly return GSTR-3B (hereinafter called the Quarterly filer). However, such option, once selected shall remain in force unless revised by taxpayer.

However, 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.

Deemed registered persons u/r 61A-

For the registered person falling in the class specified in column (2) of the Table below, who have furnished the return GSTR-3B 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 as mentioned in column (3) of the said Table:-

Sr. No. Class of Registered persons Deemed option
1 2 3
1 Registered persons having aggregate turnover of up to 1.5 crore rupees, who have furnished FORM GSTR1 on quarterly basis in the current financial year Quarterly return
2 Registered persons having aggregate turnover of up to 1.5 crore rupees, who have furnished FORM GSTR1 on monthly basis in the current financial year Monthly return
3 Registered persons having aggregate turnover more than 1.5 crore rupees and up to 5 crore rupees in the preceding financial year Quarterly return

**Default option can be changed from 5-12-2020 to 31-01-2021.

Vide notification number 82/2020 CT, CGST (Amendment) Rules, 2020 have been made effective w.e.f 1st January, 2021 which have amended rules 59,60,61 and inserted rule 61A which provides for opting for the new return regime.

Vide notification number 83/2020 CT, dates have been amended for filing details of outward supplies in form GSTR-1 by suppressing previous notifications number 75/2020 CT and 74/2020 CT.

Notification number 86/2020 quashes the earlier notification number 76/2020 CT regarding filing of GSTR-3B, to bring into effect the new provisions for filing of GSTR-3B.

A summary of all these notifications is reproduced as below:

Provisions for Normal Taxpayers u/s 39(1)

Class of tax payer GSTR-3B GSTR-1 Filing period Tax etc. payment
Taxpayers having turnover > 5 cr. by 20th of the next month By 11th of the next month Monthly at the time of filing GSTR-3B

 Provisions for Quarterly filers [proviso to section 39(1)]

Class of tax payer GSTR-3B GSTR-1 Filing period Tax etc. payment
Taxpayers having turnover <= 5 cr. by 22nd or 24th of the month next following the quarter ^ *IFF for the first and second month of the quarter upto a cumulative amount Rs. 50 Lakh.(Optional) Quarterly **Monthly
  • Invoice Furnishing Facility- IFF details for first and second months need not be given in GSTR-1 for the quarter by 25th day of the month next to the relevant month in form PMT-06.

**  the tax shall be paid in cash on monthly basis on either of the following methods:

1. For First or Second or both of the months- 35% of the tax paid in the previous quarter if the return was filed quarterly: or

2. Equal to the tax liability of last month immediately preceding the quarter if the return is furnished on monthly basis.

For example, for quarter Jan-March 2021 the tax payable shall be the tax paid in December 2020.

Provided that no such amount may be required to be deposited-

(a) 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 ;

(b) 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.

It is necessary to opt for this option that the return must be duly filled for preceding tax period.

statewise due date for GSTR-3B for Quarterly filers:

Sr. No. Class of registered persons Due Date
1 Registered persons whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep. 22nd day of the month succeeding such quarter.
2 Registered persons whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi. 24th  day of the month succeeding such quarter.

How to Opt for Quarterly filing as per proviso to section 39(1)

The option can be exercised on the common portal, from the 1st day of the second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised.

Such option once exercised remains in force unless the Quarterly filer:

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

(b) opts for furnishing of return on a monthly basis, electronically, on the common portal.

It is necessary to opt for this option that the return must be duly filled for preceding tax period.

Cessation of Quarterly filing option:

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

GSTIN Specific option:

Quarterly filing option is GSTIN specific i.e a company having different GSTINs may opt different options for different GSTINs e.g a company having two GSTIN in Delhi and Gurgaon may opt for Quarterly filing in respect of ,say, Gurgaon GSTIN and may file monthly return in respect of Delhi GSTIN.

Although the above scheme is a welcome step in the direction of ease of compliance but still has not cut much ice with the taxpayers as the main concern viz. tax payment on quarterly basis is still untouched and tax is still to be paid provisionally on monthly basis. Besides, nonpayment of tax collected by the supplier leading to blockage of ITC to the recipient of supplies is still a grim issue has also not attracted the concerns of the government. It is hoped that such issues may be taken care of by the government in the time to come.

Disclaimer:

Above discourse is the product of my study, research , self analysis and understanding of the bare provisions and perusal of other related resources and is being presented for the simplified understanding of the readers and in no way constitute advise or consultancy. As such, the readers are advised to apply their own discretion and go through the law as prevailing at the time of reading the article and take professional advice, if needed, before taking action based on this discourse.

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4 Comments

  1. SUKUMAR says:

    Yes correctly said . I have experienced this . 2 of my clients have vanished and one client for more than 2 years not paying the bills . Whereas I have paid GST or IGST promptly to the govt . The client have also taken the input ..where do I stand now ?????

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