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Quarterly Return Monthly Payment Scheme on GST

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The quarterly return monthly payment scheme (QRMP) is a scheme informed by the Central Board of Indirect Taxes and Customs (CBIC), allowing a registered person to have an aggregate turnover up to Rs. 5 crores to furnish return quarterly and a monthly payment of tax. This scheme will be effective from 01 Jan 2021.

Eligibility criteria for QRMP scheme
A registered person who is required to enhance a return in FORM GSTR-3B and who has a combined turnover of up to Rs. 5 crore rupees in the previous financial year is eligible for the QRMP scheme.

Non-eligibility for QRMP scheme
In case the aggregate turnover transcends to Rs. 5 crore rupees throughout any quarter in the current financial year, the registered person shall not be able to sanction this scheme from the next quarter.

Options applicable for QRMP scheme
A registered person can opt-in for any quarter from the first day of the second month of the previous quarter to the last day of the first month of the quarter. Facility to assist this scheme on the common portal would be available throughout the year. The registered person must enhance the last return due to the date of exercising such an option.

For example, a registered person intending to avail of this scheme for the quarter ‘July to September’ can exercise his option from 01 May to 31 Jul.

Features of QRMP scheme

  1. Who can opt for this scheme
    Following registered person can file quarterly returns and pay tax every month with effect from 01 Jan 2021:

    • A registered person (RP) who is required to file form GSTR 3B with Aggregate annual turnover (AATO) up to Rs 5 crore during a quarter RP will become in-eligible for the scheme from the upcoming quarter.
    • Any person obtaining a new registration or opting out of the Composition Scheme can also opt for this scheme.
    • The option to assist this scheme can be availed GSTIN wise. Therefore, few GSTINs for that PAN can opt for the scheme and the remaining GSTINs would remain out of the scheme.
  1. Changes on GST portal
    For quarter Jan 2021 to March 2021, all RPs whose AATO for the FY 2019-20 is up to Rs. 5 crores and have furnished return in form GSTR-3B for the month of October 2020 by 30 Nov 2020, will be migrated by default in the GST system as follows:

    • The registered persons possess an aggregate turnover of up to Rs. 1.5 crore, who have furnished form GSTR-1 every quarter in the current financial year.
    • The registered persons possess an aggregate turnover of up to Rs. 1.5 crore, who have furnished form GSTR-1 every month in the current financial year.
    • The registered persons possess an aggregate turnover of more than Rs. 1.5 crore and up to Rs. 1.5 crore in the previous financial year.
  1. When can a person opt for this scheme
    • This facility can be availed during the year, in any quarter.
    • Option for QRMP scheme, once exercised, will continue till RP revises the option or if AATO exceeds Rs. 5 crores.
    • RPs shifted by default to remain out of the scheme by exercising their option from 05 Dec 2020 to 31 Jan 2021.
    • RPs for the scheme can assist the Invoice furnishing facility (IFF) so that the registered person’s external supplies are considered in their form GSTR-2A & 2B.
  1. Payment of tax
    • Under the QRMP scheme, the registered person would be required to pay the tax due in each of the first two months (by the 25th of next month) in the quarter.
    • The form ‘PMT 06’ is required for this purpose by selecting ‘Monthly payment for the quarterly taxpayer’ as a reason for generating Challan.
    • The registered person can either use the Fixed Sum Method (pre-filled Challan) or the Self-Assessment Method (actual tax due), for monthly tax payment for the first two months, after adjusting ITC.
    • Deposits will not be required for a month if there is a zero tax liability.
    • Tax deposits for the first two months can be used to adjust liability for the quarter in the form GSTR-3B and can’t be used for any other purpose until the quarter’s filing of return.

Points to remember

  • The late fee is appropriate for the delay in furnishing the return of outward supply as per Section 47 of the CGST Act.
  • Although this system provides benefits for filing GSTR-3B quarterly, you still have to pay some amount in cash every month, which means you still have to make full calculations and consume full time.
  • If you or any of your clients fulfill the above criteria and don’t want to shift into this new system, you will have to opt-out of this system between 05 Jan 2021 to 31 Jan 2021.

At AJSH, we assist our clients in dealing with various GST matters (GST registration, filing of GST returns, claiming refund & GST Audits) by providing them adequate support and guidance from our end. If you have any questions or would like to know more about the QRMP scheme, kindly contact us.

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