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Relief to small taxpayers under GST law: Tax can be paid on an estimated basis

Taxpayers entitled to pay quarterly GSTR 3B have to pay GST for the first two months of the quarter.Will bi able to file on an estimated basis.

notification by CBIC 84/2020.the following provision has made by issuing 10-11-2020.

    • notification to Taxpayers up to 5 crores 81/2020. Dated. 10-11-2020. GST. The rules have been changed and quarterly GSTR 3B is allowed to be paid.
    • such taxpayers are allowed to pay tax on an estimated basis for the first two months of the quarters subject to certain conditions.
    • such taxpayers will have to pay 35% of the total amount debited in the previous quarter/monthly return in cash ledger in electronic cash ledger.
    • A taxpayer eligible to pay NIL tax or a taxpayer who has deposited more then the taxable amount to be paid in cash ledger or credit ledger will not be required to pay tax an estimated basis.
    • This provision will be applicable from 01 January 2021.
    • This type of estimated tax filing facility will only be available to taxpayers who have file in all the “full quarterly” forms for the previous period . “Full quarterly” means a full 3 months. 

For example: If taxpayer register on November 01,2020. and the return from 1 st November to 31st December is filed. he will not be considered “eligible” for this benefit. Such a taxpayer  will have to file a return for 1st quarter i.e. January to March to avail these benefits.

Note: The purpose of this amendment is to provide relief to certain small taxpayers but it will be very difficult to pay tax in this manner at the ground level.


by.Tax Help-


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