GST Quarterly Return Filing for Small Businessman

Navigating the complexities of Goods and Services Tax (GST) can be challenging, especially for small business owners. One of the key components of GST compliance is the GST quarterly return filing. This article will provide an in-depth look at the GST quarterly return, its due dates, and how small businessmen can effectively go about gst return filing online.

Understanding GST Quarterly Returns

The GST quarterly return is a simplified return filing option available for small taxpayers under the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme. This scheme is designed for businesses with an annual turnover of up to Rs. 5 crores, allowing them to file their GST returns every quarter instead of monthly.

Benefits of GST Quarterly Return Filing

• Reduced Compliance Burden: Filing quarterly instead of monthly minimizes the administrative workload.
• Cost-Effective: It reduces costs associated with frequent filing and accounting.
• Flexibility: Small businessmen can manage their cash flow better by aligning tax payments with their business cycles.

Key Components of GST Quarterly Return Filing

1. Types of Returns: Under the QRMP scheme, small businesses are required to file GSTR-1 and GSTR-3B returns quarterly.
2. GST Payment Due Date for Quarterly Return: Although returns are filed quarterly, GST payments must still be made monthly. The due date for GST payment for the first two months of each quarter is the 25th of the following month, while the return for the third month is filed by the 22nd or 24th, depending on the state.
3. GST Quarterly Return Turnover Limit: The turnover limit for opting into this scheme is Rs. 5 crores in the previous financial year.
4. GST Quarterly Return Limit: This refers to the eligibility criteria that allow small businesses to choose between monthly and quarterly filing based on their turnover.

How to File GST Returns Online

Filing GST returns online has become increasingly user-friendly. Here’s a step-by-step guide on how to file GSTR-1 on GST portal:

1. Log In: Visit the GST portal and log in with your credentials.
2. Navigate to Returns Dashboard: Click on “Services,” then select “Returns” followed by “Returns Dashboard.”
3. Select Financial Year and Period: Choose the relevant financial year and return period from drop-down menus.
4. Prepare Online or Offline: For fewer invoices, select “Prepare Online.” If you have more than 500 invoices, download the offline utility.
5. Fill in Details: Complete all relevant sections detailing your outward supplies.
6. Submit and Acknowledge: After reviewing your entries, submit your return and download the acknowledgment receipt.

Filing GSTR-3B

Similarly, here’s how to File GSTR 3B on GST Portal:

1. Log In: Access your account on the GST portal.
2. Select GSTR-3B: Go to “Services,” then “Returns,” and click on “GSTR-3B.”
3. Enter Details: Fill in details about your outward supplies, inward supplies, and tax liability.
4. Submit Payment Details: Ensure you include any payments made during the quarter.
5. Review and Submit: After verifying all information, submit your GSTR-3B and keep a copy for your records.

Important Dates to Remember

For small businessmen opting for quarterly returns, it’s crucial to be aware of important dates:

• GST Quarterly Return Due Date: The due date for filing GSTR-1 is typically the 13th of the month following each quarter.
• GST Payment Due Date for Quarterly Return: Payments must be made by the 25th of each month for the first two months of a quarter.

The GST Composition Scheme

For small businesses with an annual turnover up to Rs. 1.5 crores (Rs. 50 lakhs for service providers), opting for the GST Composition Scheme can be beneficial. This scheme allows businesses to pay tax at a lower rate without having to comply with complex filing requirements associated with regular taxpayers.

Under this scheme, businesses file a quarterly statement-cum-challan (CMP-08) instead of regular returns, significantly simplifying compliance.

Challenges in Filing GST Returns

Despite its advantages, small business owners may face challenges in filing their GST returns:

• Understanding Compliance Requirements: Many small businessmen may find it difficult to grasp all compliance requirements associated with GST.
• Maintaining Accurate Records: Keeping accurate records is crucial but can be cumbersome without proper accounting systems in place.
• Timely Filing: Missing deadlines can lead to penalties; hence timely filing is essential.

Conclusion

The introduction of the GST quarterly return filing option under the QRMP scheme has made compliance more manageable for small businessmen in India. By understanding key components such as due dates, payment requirements, and utilizing online filing options effectively, small business owners can navigate their tax obligations with ease.

In summary, staying informed about deadlines like the GST quarterly return due date, understanding how to file GSTR forms online, and considering options like the GST Composition Scheme are essential steps towards successful tax compliance for small businesses in today’s economy.