The Quarterly Return filing and Monthly Payment of Taxes (QRMP) Scheme under GST

The Goods and Services Tax (GST) Council in its 42nd meeting which was held on 05th October 2020, had recommended that the registered persons who have an aggregate turnover up to 5 crore rupees shall be allowed towards furnishing return on a quarterly basis together with a monthly payment of tax, with effect from 01st January 2021.

The Eligibility for availing the QRMP Scheme

A registered person who is required to provide a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the previous financial year, is eligible for the QRMP Scheme.

The Non-Eligibility for the QRMP Scheme

If the aggregate turnover is above 5 crore rupees during any quarter in the present financial year, the registered person would not be eligible for the Scheme from the next quarter.

The exercising option for QRMP Scheme

A registered person could opt-in for any quarter from the first day of the second month of the previous quarter to the last day of the first month of the quarter. The facility for availing of the Scheme on the common portal shall be available throughout the year.

However, in order to exercise this option, the registered person should have furnished the last return, as due on the date of exercising such an option.
A registered person is not required to exercise the option every quarter.

Who can opt for the scheme?

Following a registered person could file quarterly returns and pay tax on a monthly basis w.e.f. 01st January 2021:

•    A registered person who is required to file Form GSTR 3B with an aggregate annual turnover of up to Rs 5 Crore in the preceding financial year is eligible. If the aggregate annual turnover exceeds Rs 5 Crore during a quarter, the registered person would become ineligible for the Scheme from the next quarter.

•    Any person acquiring a new registration or opting out of the Composition Scheme could also opt for this Scheme.

•    The option for availing of this scheme could be availed GSTIN wise. Thus, few GSTINs for that PAN could opt for the Scheme and the remaining GSTINs could remain out of the Scheme.

Changes on the GST Portal due to QRMP

For the quarter from January 2021 to March 2021, all Registered Persons whose aggregate annual turnover for the financial year 2019-20 is up to Rs 5 Crore and who have furnished the return in Form GSTR-3B for the month of October 2020 by 30th2020, would be migrated by default in the GST system as follows:

When a person could opt for the scheme?

•    The facility could be availed throughout the year, in any quarter.

•    The option for QRMP Scheme, once exercised, shall continue till the registered person had revised the option or his aggregate annual turnover is above Rs 5 Crore.

•    The registered persons who have migrated by default could choose to remain out of the scheme by exercising their option from 5th, 2020 till 31st January 2021.

•    The registered persons opting for the scheme could avail the facility of the Invoice Furnishing Facility (IFF) so that the outward supplies towards a registered person are shown in their Form GSTR 2A and 2B.

Payment of tax under the scheme

•    The Registered Persons are required to pay the tax due in each of the first two months (by 25thof next month) in the Quarter, through selecting “Monthly payment for the quarterly taxpayer" as a reason for generating Challan.

•    The Registered Persons could either use the Fixed Sum Method (pre-filled challan) or the Self-Assessment Method (actual tax due), for a monthly payment of tax for the first two months, after adjusting ITC.

•    No deposit is needed for the month if there is a nil tax liability.

•    Tax deposited for the first 2 months could be used for adjusting liability for the quarter in Form GSTR-3B and cannot be used for any other purpose till the filing of return for the quarter.

Applicability of Late Fee

The late fee is applicable for delay in furnishing of return/details of outward supply according to the provision of Section 47 of the CGST Act. The late fee shall be applicable for delay in furnishing of the said quarterly return/details of outward supply. It is held that no late fee is applicable for delay in payment of tax in the first 2 months of the quarter

Conclusion 

The Central Board of Indirect Taxes and Customs (CBIC) had introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under the Goods and Services Tax (GST) in order to help the small taxpayers whose turnover is below Rs.5 crores.

Author:

eStartIndia Team