Under Delhi VAT, all the registered dealers are required to file QUARTERLY returns with an obligation to pay tax on MONTHLY basis. Generally small and medium businessmen deposit their monthly tax on assumption basis and send their documents to their consultants on quarterly basis. As most of the DVAT returns are not filed by the dealers but these are filed by their consultants or tax practitioners. These tax practitioners call for documents from their clients on quarterly basis and they upload the relevant data in form of Form 2A/2B on government’s website, there is perfect matching of sales and purchases in this system and demand for any mismatch in sales and purchase is automatically raised by the department. Interest and penalty on any deficiency or shortfall in the monthly tax payments are also generated be the department and are being paid by the dealers.  So this whole exercise of sending data and uploading information is done on quarterly basis, in this way government gets their dues on monthly basis, businessmen are not under pressure to send their documents every month to their consultants, and consultants have enough time to prepare returns of their clients.

But under the GST regime every registered person (except composition registered person) is required to submit monthly returns and that too in three stages. First he has to upload online details of outward supplies, then apart from verifying details of inward supplies he is required to upload the details of inward supplies received from an unregistered person, and finally he has to verify and deposit tax dues to him. This whole process will not only keep the consultants busy throughout the year but also businessmen will be under constant pressure to compile and send all the documents every month to their consultants, also now businessmen will be busy verifying his purchases and inward supplies, calling his suppliers, asking them to make corrections on monthly basis.

Let’s assume a situation of a consultant who has about 150 clients (which is very fair number even for a small or mid-sized consulting firm) who are registered under GST in India. Now from 1st to 5th of every month he and his staff will co-ordinate his clients to send the relevant documents to his office, In next 5 days he will have prepare and upload details of outward supplies of about 150 clients i.e. approximately 30 clients in a day (forget about holidays). Next 5 days he will be downloading details of mismatch regarding inward & outward supplies, communicating the same to his clients, making corrections and also uploading details of inward supplies received from composition dealers, unregistered dealers and Supplies under Reverse Charge mechanism. Then he will calculate the tax liability and inform the client, client will then either pay the tax online or will transfer the funds to consultants account and then the tax has to be submitted till 17th so that it is available in electronic cash ledger of the registered person. In case you deposit the tax on 17th and it is available in electronic cash ledger by 20th, so in one single day you will have to upload the return GSTR-3 for all 150 clients. Then pray to the almighty GOD that all the suppliers who have shown your inward supplies in their GSTR-1, files their GST returns in time to avoid another mismatch report in form MIS-1 and MIS-2 and keeps you busy till the month end. To make life of businessmen and consultants more miserable, this whole process is never ending and will be repeated every month.

I don’t know what’s the harm in making all the returns under GST as Quarterly returns.

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49 responses to “What’s harm in making GST return as QUARTERLY returns?”

  1. P.I. Jose says:

    I fully appreciate and agree with the suggestion of CA. Mr. Mithun Khatry about Quarterly GST Returns. In fact in Maharashtra, the erstwhile MVAT returns used to be quarterly together with payment of tax. There was no monthly payment of tax. Even if businessmen have to pay tax on monthly basis, but only quarterly returns, your suggestion will be appreciated. As you rightly pointed out, the consultants and tax practitioners are not able to deal with the work pressure as of now, and the businessmen are equally distressed with compiling tonnes of information and three filings in a month. They are also worried about the ITC getting rejected on account of wrong filings by the suppliers due to ignorance of rules and procedures, but not intentional. The amount thus lost will be a total loss to the organization. The issue needs serious rethinking on the part of government.

  2. ashok baghla says:

    i,m also agree with u sir,
    quartely return is only solution for survival of tax practioners in all ways i.e. physicaly,socialy,professionaly.

  3. Amit Modi Advocate says:

    Yes i am also agree with the view of author we have to give memorandum to Hon’ F M for this issue as well practical difficulties faces form GST Portal.

  4. Sanjay Arora Avocate says:

    yes..!! totally agree
    C.A/Advocates is human ..it is not possible to file three return in a months. moreover .. websites to much busy..

  5. Malay says:

    Time limit badhani chahie return bharne k lie Gujarat vat me 45 days milte the return bharne k lie

  6. Malay says:

    Time limit badhani chahie Gujarat. Vat me monthly retruns k kiye 45 days diye jate the

  7. dilip says:

    and server crashes/not responding as the load on it goes up every time a return is to be filed under the gst, who is to be blamed – naturally the govt may not agree but it should review the situation & make appropriate laws which suit our country.
    At least now to give relief for 3 months they should think of filing of returns quarterly basis.

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