GST Return is a document that contains details of income/sales and/or expenses which has to be...
As per sources, Businesses with up to 5 crore rupees turnover are now required to file only four GST sales return or GSTR-3B from the month of January instead of 12 GST Return Filing at present. It is set to provide a major relief to around 9 million small businesses.
From January onwards, small taxpayers are required to file only 8 returns that mean four GSTR-3B and four GSTR-1 returns in a year. The quarterly filing of the return with the monthly payment scheme will impact 9.4 million taxpayers, which is about 92% of the total tax base of GST.
As per sources, the scheme brings in the concept of providing Input Tax Credit only on reported invoices. This will ensure that a significant curb is put upon the fake invoice fraud menace.
As per sources, the quarterly filing of return with monthly payment scheme has the optional feature of invoicing filing facility to mitigate business related hardships for small and medium taxpayers.
Under the Invoicing filing facility, the small taxpayers who choose to be quarterly return filers under the scheme would be able to upload and file invoices in the first and the second month of the quarter for which there is demand from the recipients.
It will engage buyers who used to avoid purchase from the small taxpayers in the want of invoice uploading in the system on monthly basis. The taxpayers are not required to upload and file all invoices for the month. They can upload and file invoices that are needed to be filed in the Invoicing Filing Facility according to the recipients demand.
The remaining invoices of first, as well as second months, shall be uploaded in quarterly GSTR-1 return. The filing facility will be available up to a cut off date and credit shall flow to the recipient after cut off date on filing Invoicing Filing Facility.
The GST council in its assembly on the 5th of October stated that registered individual having aggregate turnover of up to 5 crore rupees shall be allowed to furnish returns on a quarterly basis with monthly payment of tax from 1st January, 2021.
With the launch of the scheme on 5th December, taxpayers with a turnover up to 5 crore rupees shall have an option of filing GSTR-1 and GSTR-3B returns quarterly from January-March period.
GSTR-1 is a monthly or a quarterly return that is to be filed by registered dealers. It consists of the outward supplies details i.e., sales.
GSTR-3B is needed to be filed by all normal taxpayers under GST. It comprises of details regarding outward stocks made etc.
Read our article:Consequences of non-filing of GST returns
Read our article:How to Calculate GST Payments and Refunds in India