GST Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme: All You Need to Know

By Taxscan Team - On November 23, 2020 12:43 pm - 3 mins read
GST Quarterly Return filing & Monthly Payment of Taxes-QRMP- All You Need to Know-Taxscan

The Central Board of Indirect Taxes and Customs (CBIC) had notified the Quarterly Return Monthly Payment 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.

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.

Who can opt for the scheme:

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

  1. 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.
  2. Any person obtaining a new registration or opting out of the Composition Scheme can also opt for this Scheme.
  3. The option to avail of 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:

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 ofDefault Return Option
1Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on quarterly basis in current FYQtrly
2Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on monthly basis in current FYMonthly
3More than Rs 1.5 Cr. and up to Rs 5 Cr. in preceding FYQtrly

When can a person opt for the scheme:

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

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:

  1. RPs need to pay the due in each of the t two months (by 25th of next month) in the Qtr, by selecting “Monthly payment for the truly taxpayer” as a reason for generating Challan.
  2. RPs can either use Fixed Sum Method (pre-filled challan) or Self-Assessment Method (actual tax due), for a monthly payment of tax for the t two months, after adjusting ITC.
  3. No deposit is required for the month if there is a nil tax liability.
  4. Tax deposited for the t 02 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.

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, a te fee would be applicable for delay in furnishing 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.

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