The GST Council in their 42nd Meet on 5th October 2020 proposed a quarterly return filing system for small taxpayers having aggregate turnover up to Rs 5 crores with effect from 1st January 2021.
Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 143/13/2020- GST on 10th November 2020, outlining guidelines and framework for the proposed quarterly return filing system with a monthly payment of taxes (hereinafter referred to as “QRMP Scheme/ QRMP”).
The article attempts to discuss in detail the proposed QRMP scheme as outlined by the recent Circular and Notifications.
2. Eligibility of the QRMP Scheme
A registered person who is required to furnish a return in FORM GSTR-3B having an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme (Notification No. 84/2020- Central Tax, dated 10th Nov 2020).
This new Scheme will be effective from 1st January 2021. It is clarified by CBIC that the aggregate annual turnover for the preceding financial year shall be calculated in the common portal taking into account the details furnished in the returns by the taxpayer for the tax periods in the preceding financial year.
Further, 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.
3. Option to avail QRMP Scheme
a. Mode and timeline for availing the Option The Facility to avail the QRMP Scheme shall be available throughout the year.
The said facility may be availed on the common portal (www.gst.gov.in). In terms of rule 61A of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as CGST Rules), 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.
In order to exercise this option, the registered person must have furnished the last return, as due on the date of exercising such an option. For example, A registered person intending to avail of the Scheme for the quarter ‘Jan to March’ can exercise his option from 1st of October to 31st of December.
If he is exercising his option on 27th December for the quarter (Jan to March), in such case, he must have furnished the return for the month of December which was due on 22/24th January.
b. Whether to choose option each Quarter
Registered persons are not required to exercise the option every quarter. Where such option has been exercised once, they shall continue to furnish the return as per the selected option for future tax periods, unless they revise the said option
d. Change in default option for Quarter Jan to Mar 2021
The default option as enumerated above has been made available for the convenience of registered persons based on their anticipated behavior. However, such registered persons are free to change the option. The option may be changed from 5th of December, 2020 to 31st of January, 2021.
e. Crossing aggregate turnover crossing Rs 5 crores during the Quarter
Any registered person, whose aggregate turnover crosses 5 crore rupees during a quarter in the current financial year, shall opt for furnishing of return on a monthly basis on the common portal, from the succeeding quarter. In other words, 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.
Monthly Payment of Tax in Form GST PMT - 06 a.
Monthly Payment of Tax
The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by depositing the due amount in FORM GST PMT-06, by the twenty-fifth day of the month succeeding such month. While generating the challan, taxpayers should select “Monthly payment for the quarterly taxpayer” as the reason for generating the challan.
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