Case Law Details
Celebration Blenders & Distilleres Private Limited Vs Assistant Commissioner of CGST & CX (Calcutta High Court)
The Calcutta High Court considered a petition seeking directions to the GST authorities and GSTN to undertake backend technical corrections on the GST Common Portal to enable the petitioner to opt out of the Quarterly Return Monthly Payment (QRMP) Scheme and shift to monthly filing of GSTR-1 and GSTR-3B returns from January 2026.
The petitioner, a registered person with aggregate turnover below ₹5 crores, had initially opted for quarterly return filing with monthly tax payment under the QRMP Scheme pursuant to the CBIC Notification dated 10 November 2020. According to the petitioner, its turnover crossed ₹5 crores in December 2025, requiring it to opt out of the QRMP Scheme from the quarter beginning January 2026, as prescribed under the relevant Circular.
The petitioner submitted that attempts to opt out through the GST Common Portal failed because the portal did not process the request. Representations before the GST Grievance Redressal Forum and a further request dated 4 March 2026 for change of return filing mode also remained pending.
The GST authorities argued that, under paragraph 4.4 of the Circular dated 10 November 2020, the application to opt out should have been filed on or before 31 January 2026, whereas the petitioner’s request was filed after the prescribed period. However, based on instructions received from GSTN authorities, it was submitted that backend changes could be carried out to migrate the petitioner from the QRMP Scheme to monthly filing.
The Court held that, in the facts and circumstances of the case, the petitioner should be permitted to opt out of the QRMP Scheme and file monthly returns. The Court directed GSTN and GST authorities to make necessary backend changes on the GST Common Portal to enable migration to monthly filing of Forms GSTR-1 and GSTR-3B with effect from March 2026 within fourteen days.
The Court further directed the petitioner to file returns along with applicable late fees and interest, while granting liberty to seek refund of such amounts before the concerned Commissionerate in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The petitioner seeks directions against the respondent authorities under the Central Goods and Services Tax Act, 2017, to undertake backend technical corrections on the GST Common Portal, thereby enabling the petitioner to opt out of the Quarterly Return Monthly Payment (QRMP) Scheme and to file returns in Forms GSTR-1 and GSTR-3B on a monthly basis from January 2026.
It appears that the petitioner, being a registered person with an aggregate turnover of less than ₹5 crores, had, pursuant to the Notification dated 10 November 2020 issued by the Central Board of Indirect Taxes and Customs (CBIC), opted to furnish returns on a quarterly basis along with monthly payment of tax.
Mr. Mainak Bose, learned senior advocate appearing for the petitioner, submits that the scheme mandates that a registered person must opt out of the said scheme upon its aggregate turnover exceeding ₹5 crores. The procedure for opting out is also prescribed in the Circular issued by the CBIC dated 10 November 2020.
He further submits that the petitioner crossed the prescribed threshold limit in December 2025 and, in terms of the said Circular, was required to opt out with effect from the quarter commencing January 2026.
It is further submitted that the petitioner attempted to opt out through the GST Common Portal; however, the portal did not accept the application and failed to process the petitioner’s request. Subsequent representations made before the GST Grievance Redressal Forum remained unaddressed. A further request dated 4 March 2026 for change of return filing mode also remained pending with the GST authorities.
Mr. Vipul Kundalia, learned senior advocate appearing for the GST authorities, refers to paragraph 4.4 of the Circular dated 10 November 2020 and submits that the application to opt out was required to be made on or before 31 January 2026, whereas the petitioner’s application was filed beyond the prescribed period.
He further submits, on the basis of instructions dated 6 April 2026 received from Respondent No. 3 (GSTN authorities), that the petitioner may be migrated from the QRMP Scheme to monthly filing by effecting the necessary backend changes on the Common Portal. However, with regard to the payment of interest and late fees for delayed filing, the authorities maintain that the petitioner must first file the returns along with applicable late fees and interest, and thereafter seek a refund from the concerned Commissionerate, which shall be processed in accordance with law upon submission of an appropriate application.
This Court is of the view that, in the facts and circumstances of the case, the petitioner ought to be permitted to opt out of the QRMP Scheme and to file regular monthly returns in Forms GSTR-1 and GSTR3B.
In view of the above, the GSTN and the GST authorities are directed to carry out the necessary backend changes on the GST Common Portal to enable the petitioner to opt out of the QRMP Scheme and to migrate the petitioner to monthly filing of Forms GSTR-1 and GSTR-3B with effect from March 2026. The petitioner shall file the requisite returns along with applicable late fees and interest. The GSTN and the GST authorities shall complete the aforesaid exercise within a period of fourteen (14) days from the date of this order.
The petitioner shall be at liberty to make an application for refund of such amount, which shall be considered by the concerned Commissionerate in accordance with law.
Accordingly, WPA 6667 of 2026 stands disposed of.
Urgent photostat certified copy of this order, if applied for, be supplied to the learned advocates for the parties on usual undertakings.
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