Quarterly GST Returns: A Relief for Small Business Owners

The GST obligation may seem like a nightmare, especially to small business owners in India, who, in most cases, have a number of tasks on their hands. From managing operations, serving customers, and ensuring the smooth flow of products or services, amid this chaos and juggling between tasks, adding GST compliance obligations may overwhelm them. It is not only the paperwork, but also the stress of the time limits, the tax calculation and the laws/regulations that are always changing.

To address this challenge, the government introduced quarterly GST return filing to ease the burden on smaller businesses. 

In this blog, we will explore what a quarterly GST return means and why you should be concerned about it.

What is GST Quarterly Return, Exactly? 

Let’s understand with an example. Suppose you are a small entrepreneur in Mumbai, a small cafe or a shop with handmade jewellery. You are dealing with sales, inventory, and customer orders every month. Then there is the additional burden of complying with the GST regulations. Sound familiar? 

The GST quarterly return is a lifeline for small businesses like yours. It falls under the Quarterly Return Monthly Payment (QRMP) scheme, which was launched by the Central Board of Indirect Taxes and Customs (CBIC) to reduce the load on small taxpayers.

Under the QRMP scheme, you can file GSTR-1 (outward supplies) and GSTR-3B (a summary of your tax liability) once in three months instead of monthly. 

You still have to pay taxes on a monthly basis, but the paperwork? That is reduced by a large percentage. This plan is a lifesaver to businesses whose dealings are less complicated, and it leaves you with more time to concentrate on your business growth instead of juggling between tabs to file GST returns. 

However, not all businesses are eligible. In the next section, we will discuss eligibility criteria for filing quarterly GST returns.  

Who Can File a Quarterly GST Return?

Have you ever wondered if you’re eligible for the GST quarterly return? The answer lies in your GST quarterly return turnover limit. The CBIC has fixed the limit to ₹ five crore in cumulative turnover in the preceding financial year. 

However, for any reason, if your turnover exceeds the threshold, you have to switch back to a monthly GST return in the next quarter. 

Also, this threshold applies at the PAN level, not at the company level. If there are multiple GST registrations on your PAN, the combined turnover of all the GST registrations should be less than the ₹5 crore limit.

The Relief of Quarterly Returns

Reduction in the frequency of GST return filing is one of the most important benefits of the quarterly return system. You no longer need to remember the dates of filing each month or rush around to get everything in order at the last minute. The quarterly returns will make it easier to do, and you will be able to plan your business operations and taxes.

Better still? For businesses under the Quarterly GST Return and Monthly Payment (QRMP) Scheme, while GSTR-1 (outward supplies) is filed quarterly, GSTR-3B (summary return) is filed monthly. However, there is nothing to fear about it as it is a simplified version, where businesses need to pay monthly taxes. You now have the benefit of fewer filings and control over your cash flow.

Quarterly GST Return: Due Dates You Can’t Miss

Like any other GST returns, quarterly returns have their deadlines too. The GST quarterly return due date might be less frequent than monthly returns, but it’s still important to be mindful of when these returns need to be filed. The following dates are the most important ones you should remember about the next quarter:

• For Q1 (April – June): The return is due by 22nd July.

• For Q2 (July – September): The return is due by 22nd October.

• For Q3 (October – December): The return is due by 22nd January.

• For Q4 (January – March): The return is due by 22nd April.

These deadlines are important to prevent penalties or late fees, but they allow you more time than monthly filings. The system will make sure that you are compliant without the monthly stress of filing.

A Small Business Owner’s Guide to Quarterly GST Returns With Munim GST Return Filing Software 

Now, let’s take a look at the filing process for your quarterly GST returns:

Get Your Data Ready: Collect all the applicable records, such as sales invoices, purchase invoices, and any other documents that will assist you in filing the return. 

Log in to Munim: With the use of your registered mobile number and OTP, log in to Munim GST Return Filing software.

Complete GSTR-1 and GSTR-3B: In GSTR-1, you have to report all your sales in the quarter. In GSTR-3B, you should report a summary of your tax liabilities for the month.

Submit Your Returns: After all the details have been completed, submit your returns and pay the required tax via the GST Portal. 

File on Time: Remember the deadlines for filing your returns. It is important to file on time to evade penalties. 

Tips to Stay on Top of Your GST Quarterly Returns

Looking to make GST compliance easier? These are some practical tips: 

Embrace Technology: Invest in GST return filing software such as Munim GST Return Filing. The software calculates tax liability automatically, generates challans and reminds you of deadlines. 

Reconcile Regularly: Compare your GSTR-2B with supplier invoices to prevent ITC mismatches.

Keep Yourself Updated: Go through the notifications on the GST portal or subscribe to newsletters on websites such as ClearTax or IndiaFilings to be on top of the latest.

File Early: Do not wait until the last day. File the return well in advance to avoid technical glitches.

Final Thoughts

Although GST compliance may still be tricky, the shift to quarterly returns is a welcome relief to small business owners. It simplifies GST compliance by lessening the number of filings you have to do and enables you to concentrate on expanding your business.

Are you ready to make the most of the quarterly GST return system? You may want to take full advantage of the QRMP scheme, in case you have not done so. It is an easier, less stressful form of maintaining compliance and ensuring that your business operates well. We recommend that you sign up with Munim Return Filing software and stay ahead of the GST filing deadlines without hampering your budget. Sign up now and avail of 60 days of a risk-free trial at zero cost.