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11 Important FAQs of Quarterly Return and Monthly Payment (‘QRMP’) Scheme w.e.f 1st January, 2021

With the coming of 1st day of any new month or the 1st day of the new quarter, GST Council is ready to come out with certain new changes. Whether it is 1st October 2019 (Changes in Section 36(4) , whether it is 1st October 2020 (applicability of E invoicing).

The Government on November 10, 2020 issued various notifications whereby the registered persons having aggregate turnover up to Rs 5 crores shall be allowed to furnish return on quarterly basis along with monthly payment of tax, with effect from January 01, 2021.

In depth analysis of the new return system is reproduced below in a systematic and easy way through Eleven FAQs

 Quarterly Return Monthly Payment (QRPM) Scheme

GST Return

Q 1 : Who will be eligible under Quarterly Return Monthly Payment (QRPM) Scheme?

Answer : The registered person whose aggregate turnover in the preceding financial year is up to Rs 5 crore, and who is required to furnish Form GSTR-3B is eligible for the Quarterly Return Monthly Payment Scheme (QRMP) Scheme.

 Q 2 : What will be the effective date of applicability of QRMP Scheme?

Answer : The QRMP Scheme will be effective from January 01, 2021 and the GSTN system would itself compute the aggregate annual turnover of the taxpayer.

Q 3: How and when to avail for QRMP Scheme?

Answer :The facility to avail the Scheme on the common portal would be available throughout the year. A registered person can opt in for any quarter from first day of second month of preceding quarter to the last day of the first month of the quarter.

For example, registered person intending to avail of the Scheme for the quarter ‘July to September’ can exercise this option during 1st of May to 31st of July. However, registered persons are not required to exercise the option every quarter.

Q 4 : Whether the option to avail the QRMP Scheme is GSTIN wise

Answer : Yes the option to avail the QRMP Scheme is GSTIN wise (some GSTINs for a PAN can opt for the QRMP Scheme and remaining GSTINs may not opt for the Scheme) and once it is exercised it would be valid for future tax periods .

Q 5 : What are the details the registered person will have to furnish quarterly and what is the meaning of Invoice Furnishing Facility (IFF)?

Answer : The registered persons opting for the Scheme would be required to furnish the details of outward supply in Form GSTR-1 on quarterly basis. Invoice furnishing facility (‘IFF’) has been introduced in respect of reporting the invoice for details of supply made to registered persons for the first two months of the quarter. The supplier can upload these invoices on monthly basis. Notably, the taxpayer can upload maximum of Rs 50 Lakhs invoices in each of the two months of quarter

The IFF facility is optional. The details of invoices furnished under this facility in the first two months are not required to be furnished again in Form GSTR-1.

Q 6 : How to get enroll in this scheme, whether the eligible person can migrate directly ?

Answer: To avail the benefit of this scheme, it has been clarified that all the registered persons, whose aggregate turnover for the FY 2019-20 is up to Rs 5 crore and who have furnished the return in Form GSTR-3B for the month of October, 2020 by 30th November, 2020, shall be automatically migrated on the common portal.

Q 7 :Whether the registered person having turnover less than Rs 1.5 crores shall be migrated ?

Answer : The registered taxpayer having turnover less than Rs 1.5 crores and filing monthly GSTR 1. would not be automatically migrated to QRMP scheme.

Q 8 : How to make Monthly Payment of Tax and what is the due date of payment ?

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 and the amount of tax shall be deposited by the 25th day of next month.

 Q 9 : What are the options for monthly payment of tax during the first two months:

 Answer : The options for monthly payment are Fixed Sum Method: A facility would be made available on the portal for generating a pre-filled challan in Form GST PMT-06. The amount equivalent to 35% of the tax liability paid for the last quarter shall be paid if last return is furnished quarterly. If last return is furnished monthly, it may pay the tax liability paid in the return for the last month.

Self-Assessment Method: The persons can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit available, in Form GST PMT-06. In order to facilitate ascertainment of the ITC available for the month, an auto-drafted input tax credit statement has been made available in Form GSTR-2B, for every month.

Q: 10 : What is the due date for the registered person opting for Quarterly Filing of GSTR-3B?

Answer : The registered persons opting for the QRPM Scheme would be required to furnish Form GSTR-3B, for each quarter, on or before 22nd or 24th day of the month succeeding such quarter for Class A States and Class B States respectively.

Q 11 : When and how a registered taxpayer can Opt Out of this Scheme?

Answer : The facility for opting out of the Scheme for a quarter will be available from first day of second month of preceding quarter to the last day of the first month of the quarter. It is also clarified that such registered person, whose aggregate turnover crosses 5 crore rupees during a quarter in current financial year, shall opt for furnishing of return on a monthly basis from the succeeding quarter.

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May 2024