Applicability of new GST monthly returns

All regular taxpayers whose turnover is more than Rs. 5 Crores must file the monthly GST return. Even persons having turnover up to Rs. 5 Crores can opt to file the monthly return, instead of the quarterly return.

Due date of new GST monthly returns

The due date for filing the new GST monthly returns will be 20th of the next month.

Advantage of filing new GST monthly returns versus quarterly returns

Taxpayers filing the GST monthly returns will have the capability to report missing and pending invoices, which a person filing quarterly returns will not be able to. The feature of missing invoices gives recipients the power to report invoices which suppliers have missed uploading. Pending invoices are invoices which have been uploaded by the supplier but for which any of the following three situations exist:

  1. The supply has not been received by the recipient
  2. The recipient is of the view that the invoices requires amendment
  3. The recipient is not able to decide whether to take input tax credit on the invoice for the time being

These are two important capabilities that a business filing quarterly returns will not have. Hence, even businesses having turnover upto Rs. 5 Crores must evaluate their suppliers and ensure that they choose monthly returns in case they would like the facility to report missing or pending invoices.

Profile based return

Since most taxpayers have limited types of supplies and limited types of inputs, the fields shown in the GST return will be based on the profile of the taxpayer. To understand the profile of the taxpayer, a questionnaire will be used. Fields such as exports, supplies to SEZ, etc. will be shown only if the taxpayer makes such supplies.

New return filing process

The entire process of return filing will be simplified for all taxpayers. You can learn more about the new return filing process in our blog ‘New GST return filing process- A quick guide’.

Facility to file ‘Amendment return’

Taxpayers can now file amendment returns to rectify wrong entries made in returns filed. Two amendment returns can be filed for each tax period. However, if the difference in tax liability shown in the amendment return is more than 10%, a higher late fee will be due.

File Nil GST monthly return by SMS

Persons who have no purchases, no output tax liability and no input tax credit in any quarter can file one nil return for the entire quarter. Facility to file the nil return by simply sending an SMS will be made available.

Hence, the new GST monthly returns will be simpler for taxpayers, with all the above facilities being made available. In addition, the new return filing process will also make taxpayers’ lives easier. A key benefit for persons filing monthly returns is the feature of reporting missing and pending invoices. In our next article, we will understand the key features of the new GST quarterly returns.