Filing GSTR-3B Quarterly for Small Taxpayers

CBIC issued a notice which allows small taxpayers with a turnover of up to Rs. 5 crores in the previous financial year to file GSTR-3B quarterly. You can read more about the quarterly filing scheme here.

How to Opt for Quarterly Filing?

To choose quarterly filing for GSTR-3B, a registered person must indicate their preference electronically on the GST portal from the 1st of the second month before the quarter to the last day of the first month of the quarter for which the option is being exercised.

Once opted, the taxpayer must continue filing quarterly returns for all future tax periods unless:

• They become ineligible due to conditions and restrictions set by the government (such as if their turnover exceeds Rs. 5 crore in a quarter).

• They choose to file monthly returns electronically on the GST portal.

A person cannot opt for quarterly filing if their last return due on the date of selecting the option has not been filed. For example, if they chose quarterly GSTR-3B filing on December 1, 2020, they must have filed their GSTR-3B return for October 2020 before making the selection.

How should Taxpayers Pay Taxes if they have chosen Quarterly Filing of Returns?

Registered individuals who have opted to quarterly file their GSTR-3B returns from 1st January 2021 must pay their monthly taxes by depositing an amount in the electronic cash ledger that is equal to

• 35% of the tax liability that was paid in the previous quarter in cases where the GSTR-3B has been filed quarterly.

• The total tax liability paid in the last month of the immediately preceding quarter if the return has been filed monthly. 

The amount must be deposited using form GST PMT-06 by the 25th of the following month for the first and second months of the quarter. There are certain instances where no amount may be required to be deposited, such as –  

The amount of tax must be deposited by the 25th of the following month using GST PMT-06 for the first two months of the quarter. There is no need to deposit any amount under the following situations:

• For the first month of the quarter, if the balance in the electronic credit ledger is sufficient for the tax liability for the said month or if it is nil. 

• For the second month of the quarter, if the balance in the electronic credit ledger is sufficient for the first two months of the quarter or if it is nil. 

A registered person will not be eligible for the above procedures unless he has filed the return for the tax period preceding such month. A complete tax period is one in which the individual is registered from the first to the last day of the tax period.

What deems monthly or quarterly filing of GSTR-3B?

In the case of registered persons who fall into the categories specified in the table below and have filed their GSTR-3B return for October 2020 by the 30th of November 2020, it will be implied that they have opted for monthly or quarterly filing as detailed below-

What are the due dates to file GSTR-3B?