Filing GSTR-3B Quarterly for Small Taxpayers
Since the implementation of GST in India, it has become mandatory for businesses with a certain threshold turnover to register for GST and file their returns regularly. One of the important returns taxpayers must file is GSTR-3B, a summary of monthly transactions related to the payment of tax liability. While large businesses file this return monthly, small taxpayers can file it quarterly. 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?
In order to opt for quarterly filing of GSTR-3B, a registered person must electronically mark their preference on the GST portal between the 1st of the second month preceding the quarter and the last day of the first month of the quarter, for which the option is being exercised.
It is important to note that once a taxpayer opts for quarterly filing, they must continue to file 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) or if they choose to switch back to the monthly filing on the GST portal.
Furthermore, it is not possible to opt for quarterly filing if the last return due on the date of selection has not been filed. For instance, if a taxpayer decided to opt for quarterly GSTR-3B filing on December 1, 2020, they must have already 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 be ineligible 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-
| Class of Registered Persons | Deemed Option |
| Registered persons with annual revenue of up to Rs.1.5 crore who have filed Form GSTR-1 quarterly in the current financial year | Quarterly return |
| Registered persons with an aggregate turnover of up to Rs.1.5 crore who have filled Form GSTR-1 monthly in the current financial year | Monthly return |
| Registered persons with an aggregate turnover of more than Rs.1.5 crore and up to Rs.5 crore in the previous financial year | Quarter |
What are the due dates to file GSTR-3B?
| GST Registration in States and Union Territories | Due Date |
| Chhattisgarh, Madhya Pradesh, Gujarat, Dadra and Nagar Haveli, Daman and Diu, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh | 22nd of the month succeeding such quarter |
| Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Mizoram, Manipur, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha | 24th of the month succeeding such quarter |
Conclusion
Filing GSTR-3B quarterly can be a convenient option for small taxpayers who find filing monthly returns challenging for various reasons. However, it is crucial to follow the guidelines and procedures set by the government to ensure the accurate and timely filing of returns. As we have discussed in this article, small taxpayers must indicate their preference for quarterly filing on the GST portal, and once opted in, they must continue to file quarterly returns for all future tax periods unless they become ineligible or choose to switch back to monthly filing. By staying up-to-date with the latest regulations and best practices, small taxpayers can make the most of this option and fulfil their GST compliance requirements with ease.
