On Monday the 42nd GST Council has been held under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. In this meeting, the Council has decided to allow the quarterly filing of GSTR-3B returns by the registered taxpayers having aggregate turnover less than Rs.5 crores.
Form GSTR-3B is a simple summary return that all taxpayers file monthly for the payments of tax liabilities. Earlier all taxpayers have to file this return by 20th of the subsequent month and, it was mandatory to file GSTR-3B Nil returns.
The GST Council allowed the quarterly filing of GSTR-3B so that it could reduce the compliance burden, particularly on the small taxpayers having an aggregate annual turnover less than Rs.5 crores. The new Quarterly return filing facility of GSTR-3B will be available from the date 1st January 2021. However, the quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto-generated challan.
The Finance Secretary said in a statement that the GSTR-2B has been provided to help Taxpayers calculate input tax credit, it will give taxpayers a complete idea of the ITC they are entitled to.
The new Return filing system has reduced the compliance burden of small taxpayers by reducing the filing of the number of returns from 24 to 8.
With Warm Regards,