GST Return Filing System (version 3.0) From 01-01-2021

GST Return Filing System (version 3.0) From 01-01-2021

Intention to Overhaul GST return filing system, But is it correct solution in reality???

(NOTIFICATION 82 TO 85 to notify/amend rule 60/61/62/61A. Also Circular No. 143/13/2020 is issued)

This article is presented in a manner it is dedicated to every professional who are involved in compliance work

Category 1 – Return Filing System For Turnover Below 5 Crore

Part A – For uploading Sales invoices –

If turnover below 1.5 crore

• M1 ( 1st month of Qtr) – may upload in IFF ( Only B2B) before 13th
•  M1 ( 2nd month of Qtr) – may upload in IFF ( Only B2B) before 13th
•  M3 ( 3RD month of Qtr ) – FILE GSTR-1 before 13th ( as usual) B2B, B2C, Other B2B invoices, B2CL, Other Dr. & Cr. Notes

If turnover above 1.5 crores but less than 5 crore

FILE MONTHLY GSTR 1 before 11th

( as usual)

B2B, B2C, Other B2B invoices, B2CL, Other Dr. & Cr. Notes

Related Topic:
Invoice Furnishing Facility (IFF) Under GST

What is IFF?

Upload B2B invoices, using INVOICE FURNISHING FACILITY.
Of course, no need to report invoices again in GSTR-1 if already reported in IFF. The invoices in IFF to be furnished from the 1st day of next month till the 13th day of next month. (1-13th) ( So it’s almost like GSTR 1). IFF is An Improvised Solution to upload monthly b2b invoice in case of Quarterly dealers so that Counterparty can claim ITC Monthly.

READ NOTIFICATION EXTRACT – 
Quarterly dealer may furnish the details of outward supply for the first and second months of a quarter, up to a cumulative value of fifty lakh rupees in each of the months,- using invoice furnishing facility (hereafter in this notification referred to as the ―IFF) electronically on the common portal, duly authenticated in the manner prescribed under rule 26, from the 1st day of the month succeeding such month till the 13th day of the said month.

For example-

For JANUARY- Upload invoices in IFF (B2B) till 13th February

For FEBRUARY – Upload invoices in IFF (B2B) Till 13th March

For MARCH – Upload invoices (B2B + B2CS + B2CL) in GSTR1 till 13th April

Related Topic:
GST Return Filing System (version 3.0) From 01-01-2021

PART B – For payment of Tax –

QRMP scheme from 01-01-2020 (We call it an alternative method of 3B for 5 cr below. Mind well you can still file GSTR 3B. This seems optional)

QRMP ( full form) – Quarterly Return monthly payment (for so-called Ease )

Related Topic:
15 suggestions on GST RETURNS, PROCEDURES, LAW & POLICIES – December 2019

1. How it works? For any Quarter

M1 ( first month) – pay challan – GST PMT-06 by 25th day of succeeding month
M2 (second month) – pay challan – GST PMT-06 by 25th day of succeeding month
M3 ( third month) – File GSTR 3B ( as usual) – 22nd or 24th day

2. How to ascertain?

– 2 methods to ascertain tax liability in QRMP FOR M1 & M2 months.

Method 1 – Self-assessment

it is Like self-assessed 3B, but don't file 3B. Just Pay challan (in PMT 6) after considering Outward liability and inward ITC from 2B..(Yes you have to calculate manually your self-assessment tax monthly)

That’s means,  जैसा चल रहा था ऐसा ही चलने दो.

Method 2 – Fixed sum method

Pre-filled challan in PMT 6. It’s for lazy people, pay an amount as equal to 35% of total Amt paid in last Quarter…( Read again… “35% of Last quarter Net tax”) in M1 & M2

3. How PMT-6 will work?

The amount deposited through PMT-06 for 1st and 2nd month will remain in the cash ledger and will be adjusted on filing GSTR 3B at the end of the Quarter.

Any claim of refund of such amount lying in balance in the electronic cash ledger, if any, out of the amount so deposited shall be permitted only after the return in FORM GSTR-3B for the said quarter has been filed.

Lets see how actually this system will work after 01-01-2021. People might continue with GSTR 3B

Related Topic:
10 common mistakes while filing GST returns

Author’s Comments

You will file GSTR 1 if TO above 1.5 cr / IFF monthly ( i.e b2b invoice upload facility for 1.5 cr below TO ) . And a simplified (read messed up) challan system replacing GSTR 3B . So both these works are monthly compliance only. There is nothing that Compliance reduced or anything eased up. These CHALLAN ( instead of 3B) and UPLOAIDNG OUTWARD supplies are compliance for M1 AND M2. For 3rd Month, You have to file GSTR 3B as usual and also upload GSTR 1 AS USUAL. (Of course those invoice which are already upload in IFF, not require uploading). It’s like from outer pack, you are under quarterly, but from inside you have to do everything monthly. (Not commenting on Interest and late fees and how it will work) GSTR 3B was much stable and proper. It was easy and fast system of return filling. .Better they should just stop simplification…We don’t more simplified GST.. In the name of simplification, everything is messed up for MSME.

Related Topic:

How to File GSTR-1

Read & Download the full Copy in pdf: