Central Board of Indirect Taxes & Customs (CBIC) has issued Notification No. 84/2020 – Central Tax, Notification No. 85/2020 – Central Tax and Notification No. 86/2020 – Central Tax dated 10th November, 2020 in order to provide the conditions and restrictions for those who have opted to furnish a return in GSTR-3B for every quarter if having an having an aggregate turnover of up to five crore rupees in preceding financial year and to state the special procedure to pay the tax who opted to file such return quarterly and also the earlier Notification No.76 –Central Tax dated 15th October issued to prescribe the dues date for filing of GSTR- 3B for the period October, 2020 to March, 2021 stands rescinded.
Key points of the Notifications are:
1. The following conditions and restrictions have been provided for those who are having an aggregate turnover of up to five crore rupees in the preceding financial year and have opted to furnish a return in GSTR-3B for every quarter which are as follows:
a. the return for the preceding month, as due on the date of exercising such option, has been furnished
b. where such option has been exercised once, they shall continue to furnish the return as per the selected option for future tax periods, unless they revise the same
2. A registered person whose aggregate turnover crosses five crore rupees during a quarter in a financial year shall not be eligible for furnishing of GSTR-3B return on quarterly basis from the first month of the succeeding quarter.
3. It has been provided that for the following class of registered persons (as mentioned in the table below), who have furnished the return for the tax period October, 2020 on or before 30th day of November, 2020, it shall be deemed that they have opted for the monthly or quarterly furnishing of GSTR-3B return as mentioned in column (3) of the said Table
| Sl.No
(1) |
Class of registered person
(2) |
Deemed Option (for filing GSTR-3B return)
(3) |
| 1
|
Registered persons having aggregate turnover of up to 1.5 crore rupees, who have furnished FORM GSTR-1 on quarterly basis in the current financial year | Quarterly return
|
| 2 | Registered persons having aggregate turnover of up to 1.5 crore rupees, who have furnished FORM GSTR-1 on monthly basis in the current financial year | Monthly Return |
| 3 | Registered persons having aggregate turnover more than 1.5 crore rupees and up to 5 crore rupees in the preceding financial year | Quarterly Return |
Note : The registered persons referred to in column (2) of the said Table, may change the default option electronically, on the common portal, during the period from the 5th day of December, 2020 to the 31st day of January, 2021.
4. The registered persons who has opted to furnish GSTR-3B return for every quarter or part thereof, as the class of persons who may, in first month or second month or both months of the quarter, follow the special procedure (as effective from 1st day of January, 2021) such that the said persons may pay the tax due by way of making a deposit of an amount in the electronic cash ledger equivalent to the following:
a) 35 per cent. of the tax liability paid by debiting the electronic cash ledger in the return for the preceding quarter where the return is furnished quarterly; or
b) The tax liability paid by debiting the electronic cash ledger in the return for the last month of the immediately preceding quarter where the return is furnished monthly.
5. It has also been further provided that no such amount may be required to be deposited –
i. For the first month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the tax liability for the said month or where there is nil tax liability;
ii. For the second month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the cumulative tax liability for the first and the second month of the quarter or where there is nil tax liability
For further details, please refer the attached document.
Source : Central Board of Indirect Taxes and Customs (CBIC)
