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Q1. Can Mr. A having a turnover of 1 Cr. from supply of service apply for these Scheme?

A. Yes, these scheme is applicable for all registered person having an aggregate turnover upto 5 Crore. Turnover may consist of Goods/service or both.

Q2. Can Mr. B composition Dealer apply for the Scheme?

A. Since the composition Dealer will turnover less than 5 crore they can avail the said scheme.

Q Is it PAN based Scheme or GSTIN based Scheme?

A. These scheme is GSTIN based Scheme. Therefore the GSTIN with same pan may or may not apply for these scheme depending on their convenience.

Q.3 The threshold of 5 Crore is to be considered from GSTIN perspective or PAN India?

A. The Threshold of 5 cr in preceding year shall be considered on PAN India basis . Therefore the Aggregate turnover on the said PAN No would be considered even though scheme is available on GSTIN basis

Q4. Is it a mandatory or optional scheme?

A. It is an option made available to small taxpayer as a relief from monthly return filing compliance.

Q5. Do I Need to opt for the scheme or will be compulsorily required to apply these scheme if my turnover does not exceeds 5 crore?

A. For the First Tax period under these scheme (i.e. Jan-21 to Mar-21) registered person with turnover less than 5cr will be considered applicant for these scheme unless they are filing monthly GSTR-1 in past tax periods. Further in case one wants to opt they can opt before 31 Jan21.

FAQs on eligibility and applicability Quarterly Return and Monthly Payment Scheme under GST

Q6. Once applied Can I opt out of these scheme during the quarter?

A. No, The scheme remains applicable for the quarter so once opted for these you can opt out from these scheme from next quarter only.

Q7. Once applied Can I opt out of these scheme during the year?

A. Yes, since the scheme is optional taxpayer may opt-out for these scheme during the year even if they do not cross the threshold of 5 Cr.

Q8. Once applied do I need to apply for the same in every quarters?

A. No, These scheme once excercised shall remain in force until specifically opted out by the taxpayer

Q9. What if Your turnover exceeds 5 crore in a second month of the quarter?

A. You would be ineligible to avail these scheme from next quarter and you will be required to file monthly GSTR-1/3B. However as per the notification issued taxpayer will need to opt out and pay on monthly basis that too prior to the Last date of 1st month of succeeding Quarter.

Note: Opt out can be done until last date of 1st Month of succeeding quarter but GSTR-1 and GSTR-3B for the succeeding quarter will be paid on Monthly basis in regular manner


Q10. What if my turnover exceeds 5 crore in the Last quarter of the year?

A. You would be ineligible to apply for these scheme in the Next year as your turnover in the previous year has exceeded the threshold limit.

Analysis of these scheme is available in the link given below:
Click Here



Published by

CA. Heet Shah
(Tax Consultant & Practitioner)
Category GST   Report

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