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How to Change GST Return Filing Monthly to Quarterly in India

How to Change GST Return Filing Monthly to Quarterly in India

In India, the Goods and Services Tax (GST) return filing frequency can significantly impact the compliance workload for businesses. If your annual aggregate turnover is up to ₹5 crore, you are eligible to switch from monthly to quarterly GST return filing. This change can simplify the filing process and reduce the administrative burden. This guide provides a straightforward, step-by-step approach to help you make this transition smoothly.

Eligibility Criteria for Filling GST

Before you proceed with changing your GST return filing frequency, ensure that your business meets the eligibility criteria. To be eligible for quarterly filing, your business must have an annual aggregate turnover of up to ₹5 crore in the preceding financial year. If your turnover exceeds this limit, you will need to continue with monthly filings.

Step by Step Guide of Change GST Return Filing Monthly to Quarterly

  1. Log in to the GST Portal
  • Visit the GST portal at https://www.gst.gov.in/.
  • Enter your credentials (username and password) to log in.
  1. Navigate to the Services Menu
  • After logging in, go to the ‘Services’ menu.
  • Select ‘Returns’ and then click on ‘Opt-in for Quarterly Return’.+
  1. Select Financial Year
  • On the ‘Opt-in for Quarterly Return’ page, select the financial year for which you want to change the filing frequency.
  1. Opt for Quarterly Filing
  • A list of options will appear. Choose the option ‘Quarterly’.
  • Confirm your selection by clicking the ‘Save’ or ‘Submit’ button.
  1. Confirmation and Acknowledgment
  • After submission, a confirmation message will appear on the screen.
  • You will also receive an acknowledgment via email and SMS on your registered email ID and phone number.

How many times one can switch from monthly to quarterly for GST returns in a financial year

In a financial year, you can switch the frequency of your GST return filing from monthly to quarterly and vice versa, but it is subject to certain rules and limitations set by the GST authorities.

Switching from Monthly to Quarterly: You can opt for quarterly filing if your annual aggregate turnover in the preceding financial year is up to ₹5 crore. The change is typically allowed at the beginning of a quarter and will apply from the subsequent quarter. For example, if you opt for quarterly filing in February, it will be effective from the next quarter, starting in April.

Switching from Quarterly to Monthly: If your turnover exceeds ₹5 crore during the financial year, you are required to switch back to monthly filing. This switch can also be done voluntarily if you prefer to file returns monthly for better cash flow management or compliance reasons.

Frequency of Changes: The GST regulations do not specify a strict limit on how many times you can switch within a financial year. However, frequent changes might raise scrutiny from GST authorities and complicate your compliance process. Therefore, it’s advisable to carefully plan and stick to a filing frequency that best suits your business needs and compliance capabilities.

Always ensure that any changes in your filing frequency are updated promptly on the GST portal to avoid any penalties or compliance issues.

Important Points to Remember While Filling GST

  • Effective Date: The change will take effect from the beginning of the quarter following the month in which you opt for the quarterly filing.
  • Flexibility: You can switch back to monthly filing if your turnover exceeds the eligibility limit or if you choose to.
  • Return Forms: Quarterly filers will need to file GSTR-1 (for outward supplies) and GSTR-3B (summary return).
Additional Tips
  1. Monitor Notifications: Keep an eye on GST notifications and updates to ensure compliance with any changes in rules or procedures.
  2. Maintain Records: Ensure all your sales and purchase records are up to date to avoid any issues during the transition.
  3. Seek Professional Help: If you’re unsure about the process or eligibility, consider consulting a tax professional or a GST consultant.

By following these simple steps, you can successfully change your GST return filing frequency from monthly to quarterly, ensuring a more streamlined and manageable compliance process. Always stay updated with the latest GST notifications and maintain accurate records to avoid any compliance issues. If you find the process challenging, don’t hesitate to seek assistance from a tax professional or GST consultant. This adjustment can bring considerable ease to your business operations, allowing you to focus more on growth and less on paperwork.