The Central Board of Indirect Taxes and Customs (CBIC) notified the Quarterly Return Monthly Payment Scheme.
The Board as a trade facilitation measure and in order to further ease the process of doing business, the GST Council in its 42nd meeting had recommended that registered person having aggregate turnover up to Rs.5 crore may be allowed to furnish return on quarterly basis along with monthly payment of tax, with effect from January 1, 2021.
Government has issued various notifications to implement the Scheme of quarterly return filing along with monthly payment of taxes (QRMP Scheme).
The CBIC while stating the eligibility for QRMP Scheme said that 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.
It is clarified 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.
This new Scheme will be effective from January 1, 2021. Further, in case the aggregate turnover exceeds Rs. 5 crore during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.
The Board said that the facility to avail the Scheme on the common portal would be available throughout the year. In terms of rule 61A of the Central Goods and Services Tax Rules, 2017, a registered person can opt in for any quarter from the first day of second month of 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 option.
For example, a registered person intending to avail of the Scheme for the quarter ‘July to September’ can exercise his option during 1st of May to 31st of July. If he is exercising his option on 27th July for the quarter (July to September), in such case, he must have furnished the return for the month of June which was due on 22/24th July.
The CBIC clarified that 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.
For each of the first and second months of a quarter, such a registered person will have the facility (Invoice Furnishing Facility- IFF) to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month.
The details of outward supplies shall, however, not exceed the value of fifty lakh rupees in each month. It may be noted that after the 13th of the month, this facility for furnishing IFF for the previous month would not be available.
As a facilitation measure, continuous upload of invoices would also be provided for the registered persons wherein they can save the invoices in IFF from the 1st day of the month till 13th day of the succeeding month.
The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.
It is reiterated that said facility is not mandatory and is only an optional facility made available to the registered persons under the QRMP Scheme.
The 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. As per the Scheme, the requirement to furnish the return under the proviso to sub-section (1) of Section 39 of the CGST Act is quarterly. Accordingly, late fee would be applicable for delay in furnishing of the quarterly return or 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.Subscribe Taxscan AdFree to view the Judgment