To simplify taxpayer's process of filing GST compliance, GST council has passed the new GST monthly return regulations in the 28th GST Council meeting. These also made available to the public domain, in order to obtain feedback from businesses, CAs, and industry bodies.
GST council has also announced an immense change in the new GST return which is, only a person or business whose turnover is more than Rs. 5 Crores have to file the simplified monthly return. It's kind of a relief for SMEs whose turnover is below 5 Crores since they don't have to file the simplified monthly return. This move will certainly encourage many small businesses or the ones who wish to establish small but their own business.
Let's take a look at the crucial key features of the new monthly GST returns.
1) The application facet of a new monthly GST return-
Any business, taxpayers whose turnover amount is transcending or up to the amount of Rs. 5 Crore can file the monthly return whereas, they don't require to file a quarterly return.
2) The due date of new GST monthly returns-
You can file the new GST monthly returns of each month, on the 20th of the following month.
3) Why GST monthly return is much precise way than the GST quarterly return-
When any taxpayer files a GST return monthly, he/she has got the great power to report all the pending & missing invoice easily. Whereas, it would be impossible for him/her to report pending/missing invoices if he/she were to file GST return quarterly. The feature of missing invoices gives recipients the facility to report invoices which suppliers/vendors have missed while uploading them.
4) The GST return will be based on your profit-
Many taxpayers have limited resources of income hence the profit they gain is limited. Acknowledging this scenario, GST council made provision that, the GST return amount precisely depends on the profit of taxpayers. To comprehend the profit of taxpayers, they have to fill the questionnaire in which they are requested to enter the details such as exports, supplies, SEZ, etc.
5) Provision of filing Amendment Return-
Now taxpayers can file amendment return in order to rectify the wrong entry made while filing the return. Taxpayers can file two amendment return for each tax period.
6) Facility of filing Nil GST monthly return via SMS-
A person who never had a purchase, or output tax liability, or input tax credit in any fiscal quarter, now can easily file one nil return for that particular quarter by simply sending an SMS.
If you look at these features objectively, the new GST monthly return is just a piece of cake for taxpayers since all of the above crucial facilities easily made available to them.