CBEC Notifies Quarterly GST Return/ Tax Payment by Small Taxpayers

CBEC Notifies Quarterly Filing of GST Return and Tax Payment by Small Taxpayers to Reduce Compliance Burden

CBEC has notified that the Small Taxpayers having Aggregate Turnover of less than Rs. 1.5 crores, who have not opted for Composition Scheme, shall be required to file GST Returns in FORM GSTR-1, 2 & 3 and Payment of Tax on Quarterly basis, starting from the Third Quarter, i.e. October-December, 2017. All such small taxpayers are, however, required to file FORM GSTR-1, 2 & 3 for the months of July, August and September, 2017, under the existing system.

Quarterly Return/ Tax Payment (Small Taxpayers): CBEC Notification 40/2017 Central Tax 13 Oct.

G.S.R. 1254(E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the ‘said Act’), the Central Government, on the recommendations of the Council, hereby notifies the registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees and who did not opt for the composition levy under section 10 of the said Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX of the said Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons shall be such as specified in the said Act.

GST Council Recommends ‘No GST on Advance Payments for Goods received by Small Taxpayers’

GST Council, in its 22nd Meeting on 6 Oct. 2017  has decided and recommended that there should be No GST on Advance Payments received for Supply of Goods by Small Taxpayers having aggregate annual turnover of upto Rs. 1.5 crores.

The requirement to pay GST on advances received is also proving to be burdensome for small dealers and manufacturers. In order to mitigate their inconvenience on this account, it has been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such supplies shall be payable only when the supply of goods is made.

It may be noted that Section 12/ 13 of the CGST/ SGST Acts provides that the liability to pay tax on goods or services shall arise at the earliest of the time of issue of invoice or time of receipt of payment (including advance). Therefore, a taxpayers is required to pay tax in cases where advance is received, i.e. even before supply of goods or services, which is quite difficult to comply with by small businesses.

Related Posts: 

Exemption from GST Payment on Advance for Supply of Goods notified by CBEC


  1. Akhil M Nov 1, 2017
    • Yagya Gaire Nov 6, 2017

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