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New GST Returns: (QRMP) Quarterly Return Monthly Payment Scheme

CS Lalit Rajput 
on 23 November 2020

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Introduction

GST Council in its 42nd meeting held on 05.10.2020, had recommended that registered persons having aggregate turnover up to five (5) crore rupees may be allowed to furnish return on a quarterly basis along with monthly payment of tax, with effect from 01.01.2021.

Eligibility for the QRMP Scheme

In terms of notification No. 84/2020 - Central Tax, dated 10.11.2020, a registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme.

Non Eligibility for the QRMP Scheme

In case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.

New GST Returns: (QRMP) Quarterly Return Monthly Payment Scheme

Exercising option for QRMP Scheme

  • A registered person can opt-in for any quarter from the first day of the second month of the preceding quarter to the last day of the first month of the quarter. Facility to avail the Scheme on the common portal would be available throughout the year.
  • Kindly note that: In order to exercise this option, the registered person must have furnished the last return, as due on the date of exercising such option.
  • Registered persons are not required to exercise the option every quarter.

Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme

Who can opt for the scheme

Following registered person (hereinafter RP) can file quarterly returns and pay tax on a monthly basis w.e.f. 01.01.2021 :

  • An RP who is required to file Form GSTR 3B with AATO of up to Rs 5 Cr. in the previous financial year is eligible. If AATO crosses Rs 5 Cr. during a qtr., RP will become ineligible for the Scheme from the next quarter.
  • Any person obtaining a new registration or opting out of the Composition Scheme can also opt for this Scheme.
  • The option to avail this scheme can be availed GSTIN wise. Therefore, few GSTINs for that PAN can opt for the Scheme and the remaining GSTINs can remain out of the Scheme.

Changes on the GST Portal due to QRMP

For qtr. Jan. 2021 to March 2021, all RPs whose AATO for the FY 2019-20 is up to Rs 5 Cr. and have furnished the return in Form GSTR-3B for the month of October 2020 by 30th 2020, will be migrated by default in the GST system as follows:

Sl. No.

Class of RPs with AATO of

Default Return Option

1

Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on a quarterly basis in current FY

Quarterly

2

Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on monthly basis in current FY

Monthly

3

More than Rs 1.5 Cr. and up to Rs 5 Cr. in preceding FY

Quarterly

When can a person opt for the scheme

  • The facility can be availed throughout the year, in any quarter.
  • Option for QRMP Scheme, once exercised, will continue till RP revises the option or his AATO exceeds Rs 5 Cr.
  • RPs migrated by default can choose to remain out of the scheme by exercising their option from 5th, 2020 till 31st Jan. 2021.
 

Kindly note: The RPs opting for the scheme can avail the facility of Invoice Furnishing Facility (IFF), so that the outward supplies to registered person is reflected in their Form GSTR 2A & 2B.

Payment of tax under the scheme

  • RPs (Registered Persons) need to pay the tax due in each of the first two months (by 25th of next month) in the Qtr, by selecting “Monthly payment for the quarterly taxpayer" as a reason for generating Challan.
  • RPs can 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 required for the month if there is a nil tax liability.
  • Tax deposited for the first 2 months can be used for adjusting liability for the qtr. in Form GSTR-3B and can’t be used for any other purpose till the filing of return for the qtr.
 

Applicability of Late Fee

Late fee is applicable for delay in furnishing of return/details of outward supply as per the provision of Section 47 of the CGST Act. Late fee would be applicable for delay in furnishing of the said quarterly return/details of outward supply. It is clarified that no late fee is applicable for delay in payment of tax in the first two months of the quarter.

Link of the Circulars:

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error, or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event, the author shall be liable for any direct, indirect, special, or incidental damage resulting from or arising out of or in connection with the use of this information.


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