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, generally through Form GST PMT-06 for the first two months of the quarter, but the paperwork? That is reduced significantly. 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.

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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 at an aggregate annual turnover of up to ₹5 crore in the preceding financial year and the current financial year, where applicable. You must also have filed your latest due GSTR-3B return to opt for the scheme.

However, if your aggregate turnover exceeds ₹5 crore during the current financial year, you have to switch back to monthly GST return filing from the first month of the quarter following the quarter in which you crossed the limit.

Also, this threshold applies at the PAN level, not at the individual GSTIN level. If there are multiple GST registrations under your PAN, the combined aggregate turnover should not exceed the ₹5 crore limit. However, eligible GSTINs under the same PAN can independently opt for quarterly or monthly filing.

You can opt in or opt out of the QRMP scheme through GST Portal > Services > Returns > Opt-in for Quarterly Return option, within the prescribed window for the relevant quarter. Once selected, your filing frequency continues for subsequent quarters unless you change it or become ineligible.

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 GSTR-1 and GSTR-3B 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, both GSTR-1 (outward supplies) and GSTR-3B (summary return) are filed quarterly. However, businesses generally need to pay taxes for the first two months of the quarter through Form GST PMT-06 by the 25th of the following month.

You can make these payments using either the Fixed Sum Method, which provides a system-generated challan based on previous tax payments, or the Self-Assessment Method, where you calculate the actual tax liability after considering eligible ITC. Under the Fixed Sum Method, the challan is generally calculated at 35% of the cash tax paid in the preceding quarter if the previous return was quarterly, or 100% of the cash tax paid in the last month of the preceding quarter if the previous return was monthly.

You also have the option to use the Invoice Furnishing Facility (IFF) to report B2B invoices, debit notes and credit notes for the first two months of a quarter. This optional facility allows eligible invoice details to appear in your customers’ GST records without waiting for your quarterly GSTR-1. IFF can be used for eligible supplies up to ₹50 lakh per month and must be furnished by the 13th of the following month. Details already furnished through IFF need not be reported again in quarterly GSTR-1.

You now have the benefit of fewer return 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 for each quarter:

Note: The GSTR-3B deadline is the 22nd or 24th depending on the taxpayer’s State or Union Territory. These are the normal statutory due dates and may be extended through government notifications.

Additionally, QRMP taxpayers should remember these monthly deadlines for the first two months of each quarter:

• IFF (optional): 13th of the following month.
• Form GST PMT-06: 25th of the following month for applicable monthly tax payments.

These deadlines are important to prevent penalties, late fees or interest, as applicable, but they allow you more time than monthly return filings. The system will make sure that you are compliant without the monthly stress of filing GSTR-1 and GSTR-3B.

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

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.

Complete Monthly Tax Payments: For the first two months of the quarter, calculate and pay applicable GST through Form GST PMT-06 by the 25th of the following month. You can use the Fixed Sum Method or Self-Assessment Method. You may also furnish eligible B2B invoice details through the optional IFF by the 13th of the following month.

Complete GSTR-1 and GSTR-3B: In GSTR-1, you have to report your outward supplies for the quarter, excluding details already furnished through IFF. In GSTR-3B, you should report a summary of your tax liabilities and eligible ITC for the entire quarter.

Submit Your Returns: After all the details have been completed, submit and file your returns through the applicable filing facility and discharge the remaining tax liability through the GST Portal, considering the amounts already deposited during the first two months.

File on Time: Remember the deadlines for filing your returns. It is important to file on time to avoid penalties, late fees or interest, as applicable.

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. The software helps you prepare GST returns, reconcile purchase data and review tax liabilities before filing. Use the GST Portal to generate and pay applicable PMT-06 challans.

Reconcile Regularly: Compare your GSTR-2B with supplier invoices to identify ITC mismatches and verify eligible input tax credit before filing GSTR-3B.

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 eligible small business owners. It simplifies GST compliance by lessening the number of return filings you have to do while maintaining monthly tax payments, 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 GST return filing software and stay ahead of the GST filing deadlines without hampering your budget. Sign up now and start your 7-day free trial at zero cost.

About the author

Mehul Jagwani

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Mehul is a seasoned content writer with a passion for simplifying complex accounting and GST topics. With a keen interest in entrepreneurship and business management, he specializes in creating informative and engaging content for themunim.com.  His goal is to help businesses understand and implement accounting and GST software solutions effectively. When he's not crafting content, Mehul enjoys exploring new places and spending time with his Golden Retriever.