Section 39 provides for furnishing of Return of Inward & Outward Supplies, ITC, Tax Payable etc by Regular Dealer, Composition Dealer, ISD, NRTP, TDS deductor etc.

Mode of Payment of Tax after adjusting ITC

Regular Dealer = RP, other than ISD or a NRTP or a person paying tax u/s 10 or 51 or 52

Initially, return in Form GSTR-3 was notified as the return u/S 39(1) which was to be filed by 20th day of the month succeeding the relevant calendar month or part thereof.

However, GSTR-3 never became practically applicable as the filing thereof has been deferred by the GST Council since the introduction of GST law. Therefore, in lieu of return in Form GSTR-3, return in Form GSTR-3B has been notified.

[1][Section 39(1)

Monthly Return

RP, other than ISD or a NRTP or a Composition Dealer paying tax u/s 10 [Composition] or 51 or 52 [TDS]

shall, for every month or part thereof,

furnish a return of

inward and outward supplies,

ITC availed, tax payable, tax paid and such other particulars,

in such form and manner, and within such time, as may be prescribed:

1^st Proviso - Quarterly Return for some RPs

Govt may notify RPs who shall furnish a return for every quarter or part thereof,

subject to such conditions and restrictions as may be specified therein.]

Contents of Return

Return u/s 39(1) shall incudes

inward and outward supplies,

ITC availed, tax payable, tax paid and such other particulars.

Regular Dealer may furnish monthly or quarterly return. However before 01.01.2021, there was no option to file quarterly GSTR-3B.

GSTR-3B is a simple return containing summary of outward supplies, inward supplies liable to reverse charge, eligible ITC, payment of tax etc.

Thus, GSTR-3B does not require invoice-wise data of outward supplies.

Under 1^st proviso to section 39(1), CG has issued Notification No. 84/2020-Central Tax dt. 10-11-2020 to notify RPs who may opt for Quarterly Return.

As per above notifications, Quarterly Return may be opted subject to following conditions

He is RP, other than a person referred to in section 14 of the IGST Act, 2017

his aggregate turnover is up to Rs.5 cr in the preceding FY;

he has opted to furnish quarterly GSTR-3B u/r 61A(1)

he pays the tax due every month in accordance with the proviso to section 39(7);

he furnishes return for the preceding month, as due on the date of exercising such option, has been furnished

For complete provision related to quarterly return, please refer above notification.

QRMP Scheme is an optional return filing scheme, introduced for small taxpayers having aggregate annual turnover (PAN based) of upto ₹ 5 crore in the preceding financial year to furnish their Form GSTR-1 and Form GSTR-3B on a quarterly basis while paying their tax on a monthly basis through a simple challan.

Opting of QRMP scheme is GSTIN wise.

Distinct persons can avail QRMP scheme option for one or more GSTINs. It implies that some GSTINs for a PAN can opt for the QRMP scheme and remaining GSTINs may not opt for the said scheme

Question & Answer

Rule 61(1)

RP other than a person referred to in section 14 of the IGST Act, 2017 or an ISD or a NRTP or a person paying tax u/s 10 or 51 or 52

shall furnish a return in GSTR-3B

Due Dates of GSTR-3B wef 01-01-2021

(i) for Monthly GSTR-3B = On or before 20^th day after the end of tax period [Month]:

(ii) For Quarterly GSTR-3B =

Return u/s 39(1) shall be furnished in GSTR-3B

Due Dates of GSTR-3B

• Due Dates of Monthly GSTR-3B = 20^th of next month
• Due Dates of Quarterly GSTR-3B = 22^nd or 24^th of month succeeding quarter

[2][Rule 61A(1)

Time Limit for opting for QRMP scheme

RP intending to furnish quarterly return,

shall indicate his preference for furnishing quarterly return

from 1st day of 2^nd month of the preceding quarter till the last day of 1^st month of the quarter for which the option is being exercised

2^nd Proviso - All previous GSTR-3B must have been furnished before opting for quarterly GSTR-3B

RP shall not be eligible to opt for quarterly return in case the last return due on the date of exercising such option has not been furnished.

Ex

RP intending to avail of QRMP scheme for the quarter ‘July to September’ can exercise his option from 1st May to 31 st July.

1^st Proviso to Rule 61A(1)

where such option has been exercised once, RP shall continue to furnish the quarterly return for future tax periods, unless he,

(a) becomes ineligible for furnishing the quarterly return; or

(b) opts for furnishing of return on a monthly basis:

Rule 61A(2)

A RP, whose aggregate turnover exceeds Rs.5 cr during the current FY,

shall opt for furnishing of return on a monthly basis

from the 1^st month of the quarter, succeeding the quarter during which his aggregate turnover exceeds Rs.5 cr.

When aggregate turnover exceeds Rs.5 Cr, RP shall opt for monthly return.

Section 39(8)

RP who is required to furnish a return u/ss (1) or (2)

shall furnish a return for every tax period whether or not any supplies have been made during such tax period.

Section 39(3) read with Rule 66(1)

RP (Deductor) required to deduct tax u/s 51

shall furnish, a return in GSTR-7 and manner as may be prescribed,

for the month in which such deductions have been made

within 10 days after the end of such month.

TDS deductor shall furnish monthly return in GSTR-7

Due date of GSTR-7

10^th day after the end of month

Question & Answer

Rule 66(2)

The details furnished by the deductor u/sr (1) shall be made available electronically to deductees on the common portal after filing of GSTR-7 [3][for claiming of tax deducted in his electronic cash ledger after validation]

Rule 66(3)

Certificate u/s 51(3) shall be made available electronically to the deductee on the common portal in GSTR-7A on the basis of the return furnished u/sr (1)

Section 39(5) read with rule 63

Every registered NRTP

for every calendar month or part thereof,

shall furnish a return in GSTR-5 and also pay the tax, interest, penalty, fees or any other amount payable under the Act or the provisions of this Chapter

within 20 days after the end of a calendar month or

within 7 days after the last day of the validity period of registration specified u/s 27(1)

whichever is earlier

Rule 63

GSTR-5 shall include details of outward supplies and inward supplies.

Question & Answer

[4][Section 39(7)

RPs who is required to furnish a return in

GSTR-3B u/ss (1), other than the person referred to in the proviso thereto, or

GSTR-7 u/ss (3) [TDS deductor] or

GSTR-5 u/ss (5) [NRTP],

shall pay tax due as per such return not later than the last date on which he is required to furnish such return:

[5][1^st Proviso to Section 39(7) read with Rule 61(3) [WEF 01-01-2021]

RP furnishing quarterly GSTR-3B shall pay

(a) tax due taking into account inward and outward supplies, ITC availed, tax payable and such other particulars during a month, or

(b) in lieu of the amount referred to in clause (a), an amount determined in such manner and subject to such conditions and restrictions as may be prescribed.

for each of the first two months of the quarter, by depositing the said amount in GST PMT-06, by 25^th of the month succeeding such month

Under 1^st proviso to section 39(7), CG has issued Notification No. 85/2020-Central Tax dt. 10-11-2020 to notify amount of tax to be deposited on monthly basis.

Summary of above notifications

RP opting for quarterly GSTR-3B, may pay the tax by deposit of an amount in the electronic cash ledger equivalent to, -

(i) 35% of the tax liability paid by debiting the electronic cash ledger in the return for the preceding quarter where the return is furnished quarterly; or

(ii) tax liability paid by debiting the electronic cash ledger in the return for the last month of the immediately preceding quarter where the return is furnished monthly

Provided that no such amount may be required to be deposited-

(a) for the 1^st month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the tax liability for the said month or where there is nil tax liability;

(b) for the second month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the cumulative tax liability for the first and the second month of the quarter or where there is nil tax liability:

3^rd Proviso to Rule 61(3)

While making a deposit in GST PMT-06, RP may –

(a) for 1^st month of the quarter, take into account the balance in the electronic cash ledger.

(b) for 2^nd month of the quarter, take into account the balance in the electronic cash ledger excluding the tax due for the first month.

Rule 61(4)

The amount deposited u/sr (3) above in PMT-06,

shall be debited while filing GSTR-3B for the said quarter, and

any claim of refund of such amount lying in balance in the electronic cash ledger, if any, out of the amount so deposited shall be permitted only after the return in FORM GSTR-3B for the said quarter has been filed

1^st & 2^nd Proviso to Rule 61(3)

Commissioner may, by notification, extend the due date for depositing tax in GST PMT-06, for such class of taxable persons as may be specified therein:

Any extension of time limit notified by the Commissioner of State tax or UT tax shall be deemed to be notified by the Commissioner:

Refer summary of due date extended under 1^st proviso to Rule 61(3)

Rule 61(2)

RP furnishing return u/sr (1) shall, subject section 49,

discharge his liability towards tax, interest, penalty, fees or any other amount payable

by debiting the electronic cash or credit ledger and include the details in the return in GSTR-3B.

Before 01-01-2021, the above provisions were given in Rule 61(3)

Composition Dealer shall furnish a return of turnover in the State/UT, inward supplies, tax payable and tax paid.

[6][2^nd Proviso to Section 39(7) read with Rule 62(1)(i)

RP paying tax u/s 10 shall

pay tax due taking into account turnover in the State/UT, inward supplies, tax payable, and such other particulars during a quarter, and

furnish a statement, every quarter or part thereof, containing the details of payment of self-assessed tax in GST CMP-08,

till the 18th day of the month succeeding such quarter;

CMP-08 was introduced in April 2019 and was made applicable from FY 2019-2020 onwards. It replaces quarterly GSTR-4 earlier filed by composition dealers.

Question & Answer

Rule 62(2)

RP furnishing the [7][statement u/sr (1) shall discharge his liability towards tax or interest] by debiting the electronic cash ledger.

Composition dealer shall pay quarterly self assessed tax in CMP-08 till the 18th day of the month succeeding such quarter by debiting the electronic cash ledger

[8][Section 39(2) read with Rule 62(1)(ii)

RP paying tax u/s 10,

shall, for each financial year or part thereof,

furnish a return in GSTR-4 of

turnover in the State/UT,

inward supplies,

tax payable, tax paid

till 30^th day of April following the end of such financial year.

[9][***]

Annual Return in GSTR-4

Composition dealer shall furnish yearly return in GSTR-4 till 30^th day of April following the end of such FY.

Before FY 2019-20, GSTR-4 was quarterly return

Question & Answer

Rule 62(3)

The return furnished u/sr (1) shall include the-

(a) invoice wise inter-State and intra-State inward supplies received from RP and URP; and

(b) consolidated details of outward supplies made.

Refer Notification No. 21/2019-Central Tax dt. 23-04-2019 for extension of time limit for CMP-08 & GSTR-4.

Rule 62(4)

RP who has opted to pay tax u/s 10  [10][**] from the beginning of a FY

where required,  shall furnish the details of outward and inward supplies and return u/r 59, 60 and 61 relating to the period during which the person was liable to furnish such details and returns

till the due date of furnishing the return for the month of Sep of the succeeding FY or

furnishing of annual return of the preceding FY,

whichever is earlier.

Explanation.– For this sub-rule, person shall not be eligible to avail [11][**] ITC on receipt of invoices or DN from the supplier for the period prior to his opting for the composition scheme [12][**].

Rule 62(5)

RP opting to withdraw from the composition scheme

at his own motion or

where option is withdrawn at the instance of the proper officer

shall, where required,

furnish [13][a statement in GST CMP-08 for the period for which he has paid tax under the composition scheme till the 18th day of the month succeeding the quarter in which the date of withdrawal falls and

furnish a return in GSTR-4 for the said period till the 30^th day of April following the end of the FY during which such withdrawal falls]

[14][Rule 62(6) ****]

Section 39(4) read with rule 65

Every registered ISD shall,

on the basis of details contained in GSTR-6A, and where required, after adding, correcting or deleting the details for every calendar month or part thereof

furnish, a return, electronically, in GSTR-6 containing the details of tax invoices on which credit has been received and those issued u/s 20

within 13 days after the end of such month

Question & Answer

Section 39(9)

[15][Where] any RP after furnishing a return u/ss (1) or (2) or (3) or (4) or (5) [GSTR-3B, 4, 5, 6, 7]

discovers any omission or incorrect particulars therein,

other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities,

he shall rectify such omission or incorrect particulars [16][In such form and manner as may be prescribed] in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, subject to payment of interest under this Act:

Proviso to Section 39(9)

no such rectification of any omission or incorrect particulars shall be allowed after

[17][30^th day of Nov] following [18][the end of the FY to which such details pertain], or

the actual date of furnishing of relevant annual return,

whichever is earlier.

Question & Answer

Section 39(10)

RP shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods [19][or the details of outward supplies u/s 37(1) for the said tax period has not been furnished by him:

Provided that the Government may by notification, subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish the return, even if he has not furnished the returns for one or more previous tax periods or has not furnished the details of outward supplies u/s 37(1) for the said tax period.]

Section 39(8)

RP who is required to furnish a return u/ss (1) or (2)

shall furnish a return for every tax period whether or not any supplies have been made during such tax period.

Section 39(6)

The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein:

Provided that any extension of time limit notified by the Commissioner of State tax or Union territory tax shall be deemed to be notified by the Commissioner.

Refer all notifications issued u/s 39(6) for extension of time limit various returns.

Section 39(1) read with Rule 61(1)

RP, other than a person referred to in section 14 of the IGST Act, 2017 or an ISD or a NRTP or a person paying tax u/s 10 or 51 or 52 or

shall, for every calendar month or part thereof,

furnish, in GSTR-3 and manner as may be prescribed,

a return, of inward and outward supplies, ITC availed, tax payable, tax paid and such other particulars as may be prescribed,

on or before 20^th day of the month succeeding such calendar month or part thereof.

In old provisions, there were no option to furnish quarterly return.

Due Date of Return before 31-12-2020

Monthly Return shall be furnished on or before 20^th after end of Tax Period. Due dates were provided itself in section 39(1).

Return u/s 39(1) shall be furnished in GSTR-3. However, filing of GSTR-3 has been deferred by the GST Council due to technical problems in GST portal.

Rule 61(5)

Where the time limit for furnishing of GSTR-1 or in GSTR-2 has been extended,

return u/s 39(1) shall,

in such manner and subject to such conditions as Commissioner may, by notification, specify,

be furnished in GSTR-3B

Provided that where a return in GSTR-3B is required to be furnished by a person then such person shall not be required to furnish the return in GSTR-3.

If time limit for furnishing of GSTR-1 or in GSTR-2 has been extended, then monthly return must be furnished in GSTR-3B in place of GSTR-3

If GSTR-3B has been furnished u/r 61(5), then GSTR-3 shall not be furnished later on.

Various Notifications issued u/r 61(5)

Time limit for furnishing GSTR-3B specified or extended u/r 61(5)

[20][Rule 61(6) [From 10-11-2020 to 31-12-2020]

RP other than a person referred to in section 14 of the IGST Act, 2017 or an ISD or a NRTP or a person paying tax u/s 10 or 51 or 52

shall furnish a return in GSTR-3B on or before 20^th day of the month succeeding such tax period

1^st and 2^nd Proviso – RPs having AT =< Rs.5 Cr

taxpayers having an aggregate turnover of up to Rs.5 cr in the previous FY shall furnish GSTR-3B for the months of October, 2020 to March, 2021 as follows

.

Rule 61(2) [Upto 31-12-2020]

Part A of the return u/sr (1) shall be electronically generated on the basis of information furnished through GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods.

Rule 61(4) [Upto 31-12-2020]

A RP, claiming refund of any balance in the electronic cash ledger as per section 49(6)

may claim such refund in Part B of the return in GSTR-3 and such return shall be deemed to be an application filed u/s 54.

Question & Answer