CBIC Notifies Rules for Monthly & Quarterly Filing of Form GSTR 1

Form GSTR 1 signifies a Monthly GST Return that is filed by a “Regular Dealer” regarding all the “Outward Supplies” made by him or her in a specific month or quarter. 

Recently, CBIC or Central Board of Indirect Taxes and Customs, by way of a Notification No 84/ 2020, dated 10.11.2020 had notified that the registered taxpayers who are having an aggregate annual business turnover of up to Rs 5 crores in the previous financial year and who have chosen to furnish GST return for every quarter, under sub rule (1) of rule 61 A of the CGST Rules 2017 as the class of persons, are subject to several restrictions and conditions.

In this blog, we will discuss the notification issued by CBIC regarding the Monthly and Quarterly Filing of Form GSTR 1.

Concept of Filing Form GSTR-1

Form GSTR 1 is a monthly GST return filed regarding all the outward supplies made in a particular month or quarter. Principally, it is a return that showcases all the dealings and transaction regarding sales made ina business.

Effective Date for the Notification Issued

The effective date for filing GST returns in GSTR 1 after the issuance of notification no 84/2020^[1] is January 2021. Further, the taxpayer needs to pay the tax due for every month based on the proviso of subsection (7) of section 39 of the CGST Act.

Provision of Sub Section 7 of Section 39

The provisions covered under the proviso of subsection 7 of section 39 are as follows:

1. The return for the previous month, as due on the date of exercising such an option, has been duly furnished;
2. Further, where such an option has been exercised once, then they shall continue to submit the return as per the chosen option for future tax periods as well unless they revise the same;

Who are all Eligible to File Form GSTR 1 as per Latest Notification?

All the registered taxpayers who are having an aggregate annual business turnover of Rs 5 crores or more in the previous financial year and who have chosen to furnish GST return for every quarter, under sub-rule (1) of rule 61 A of the CGST Rules 2017 as the class of persons, are eligible to furnish Form GSTR 1 as per the latest notification issued by CBIC on 10.11.2020.

Who are all not Eligible to File Form GSTR 1 as per Latest Notification?

Any person who is specified under section 14 of the Integrated Goods and Services Tax Act 2017 is not eligible to furnish Form GSTR 1 as per the latest notification issued by CBIC.

Also, it shall be relevant to mention that if in case the annual business turnover of the registered person exceeds the threshold of Rs 5 crores rupees in any quarter in a financial year, then he/ she shall not remain eligible for furnishing return GSTR 1 on a quarterly basis, starting from the first month of the coming quarter.

Summarised Table Regarding the Filing of Form GSTR 1

The provisions concerning the Monthly and Quarterly Filing of Form GSTR 1 can be summarised as:

S No.	Classes of the Registered Person	Deemed Option
1.	Registered persons who are having an aggregate annual business turnover of up to Rs 1.5 crore, and who have furnished Form GSTR 1 on a quarterly basis in the present financial year	Quarterly Return
2.	Registered persons who are having an aggregate annual business turnover of up to Rs 1.5 crore, and who have furnished Form GSTR 1 on a monthly basis in the present financial year	Monthly Return
3.	Registered persons who are having an aggregate annual business turnover of more than Rs 1.5 crore and up to Rs 5 crore in the previous financial year.	Quarterly Return

Points to Consider Regarding the Filing of Form GSTR 1

The points to consider regarding the Filing of Form GSTR 1 are as follows:

Deemed to Choose Option Given under Sub-rule 1 of Rule 61A

All the registered persons who are falling in either of the class mentioned in column (2) of the Table stated above and who have submitted the return for the tax period Oct 2020 on or before 30.11.2020, they shall be deemed that they have chosen the option under sub-rule (1) of rule 61A of the CGST Rules 2017 for the monthly or quarterly filing of return as specified under column (3) of the said Table.

Change the Default Option Electronically

All the registered persons specified under column (2) of the table mentioned above, may choose to electronically change the default option available on the common GST portal, during the period starting from the 05.12.2020 to the 31.01.2021.

Conclusion

In a nutshell, Form GSTR 1 is a monthly GST return filed regarding all the outward supplies made in a particular month or quarter.It is a return that showcases all the dealings and transaction regarding sales made in a business.

Further, CBIC, by way of a Notification No 84/ 2020, dated 10.11.2020 had notified a change for the registered persons who are having an aggregate annual business turnover of up to Rs 5 crores in the previous financial year.

However, it shall be relevant to state that a person who is specified under section 14 of the IGST Act 2017 is not eligible to furnish Form GSTR 1. Moreover, the said notification will come into effect from January 2021.

In case of any other doubt and dilemma, reach out to Swarit Advisors, we have a team of experts who will not only provide you guidance but will assist you in the process of GST Registration and GST Return Filing as well.

Also, Read: Extension of Due Dates for Filing GST Annual Return by CBIC

Official Notification

notfctn-84-central-tax-english-2020