All about Quarterly GST Returns Scheme
Government had introduced a new option to small taxpayers at the starting of year 2021. The option was to allow taxpayers to file quarterly GST returns instead of monthly.
Most of the taxpayers still have no clue about it or having confusion about how they need to file returns and pay taxes under the new option.
The most common questions of the taxpayers will be covered under this article along with their answers.
Who is Eligible to opt this scheme?
All the small taxpayers are eligible to opt for this scheme who are registered under GST and having turnover up to ? 5 crore and are required to file GSTR 3B.
What is the Benefit in this scheme?
In this scheme, the taxpayers can file their GSTR 3B and GSTR 1 quarterly return basis but they need to pay the tax on monthly basis only.
When is the due date of filing GSTR 3B and GSTR 1 return under this scheme?
GSTR-1 needs to be filed up to 13th of the next month from the end of the quarter.
GSTR 3B needs to be filed up to 22nd or 24th of the next month from the end of the quarter based on the category of state.
What is the due date for the payment of tax on monthly basis?
The payment of the GST due for a month needs to be made up to the 25th of the succeeding month.
While generating the challan, taxpayers should select “Monthly payment for Quarterly taxpayer” as reason for generating the challan.
How to calculate the GST liability to be paid on monthly basis?
GST liability to be paid on monthly basis can be calculated using either of the below two methods:
- Fixed sum method,
- Self-Assessment method
Under Fixed sum method, the sum payable on the monthly basis can be calculate as either:
- 35% of the GST paid during the previous quarter or,
- 100% of GST paid in the last month of the previous quarter when the GST monthly returns filing.
Under Self-assessment method, GST liability can be calculated on actual outward and inward supply during the month. The input for inward supply can be seen by extracting the monthly GSTR 2B statement available on the GST portal.
Is fixed sum method or self-assessment method can be choose as per taxpayer’s convenience?
Yes, the taxpayer is free to choose fixed sum method or self-assessment method as per his convenience and he is free to change the same every month.
When can this option of filing returns quarterly be exercised?
This option can be exercised during a time period mentioned in the law. The time period is between the first date of second month of previous quarter to the last day of first month of the quarter.
While opting for this scheme, it is to be made sure that the returns of previous period due is already filed.
Should this option need to be opted in every quarter?
No, this option once exercised will continue in all the upcoming quarters unless the taxpayer decides to change the same subsequently.
When can opt out under this scheme be exercised?
Just the same period in which opt in can be exercised which is between the first date of second month of previous quarter to the last day of first month of the quarter.
If taxpayer is having multiple GSTNs, how to use this option, whether it need to be opted for all GSTNs?
If a taxpayer is having multiple GSTNs, then it is not necessary to opt in under this scheme for all the GSTNs. He may opt in under this scheme for some GSTNs and for others he may choose to not opt.
Can a taxpayer claim refund for excess tax payment in the first two months?
Yes, but the claim of refund for the amount deposited for the first two months of a quarter for payment of tax can be done only after the return in GSTR 3B for the quarter has been filed.
Is interest needs to be paid for short payment of taxes in the first two months of the quarter and how the same will be calculated?
Yes, the interest needs to be paid if there is a short payment of taxes in the first two quarter if the same is calculated on the basis of self-assessment method.
No interest is required to be paid if tax is calculated and paid in accordance with fixed sum method on or before the due dates.
Interest to be calculated on shortage at the rate of 18% per annum from the due date to the actual date of the payment.
Interest will also be applicable in case the tax is not paid within the due dates.
We hope that we are able to clear your common queries with the help of this article. If you are having any additional queries or wants to file the GST returns with our help, please contact the ExpertBells at (+91) 7438-99-7438
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