Quarterly Return Monthly Payment under GST

Last Updated On: Nov. 13, 2020, 10:44 p.m.
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QUARTERLY RETURN MONTHLY PAYMENT SCHEME

CBIC vide circular dated 10 November clarifies various issues related to Quarterly Return Payment scheme. Government notifies the scheme “Quarterly Return Monthly Payment” which allows a registered person having an aggregate turnover upto Rs. 5 Crore to furnish return on a monthly basis along with the payment of tax.

This scheme will implemented from 1st January 2021.

 

Who is eligible for this scheme?

A registered person who has an aggregate turnover upto Rs.5 crore in the preceeding financial year and who is required to furnish a return in form GSTR-3B is eligible to the QRMP scheme.

For the claculations of aggregate for the preceeding financial year, common portal will taken into account where the details furnished by the taxpayer for the tax periods in the preceeding financial year.

 

Non-Eligibility:

In case if the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.

 

Change from the default option of filing Return Periodicity:

The default option has been provided for the convenience of registered persons. Such registered persons are free to change the option as above if they so desire. For the first quarter of the scheme, the changes can be done from the 5th of December, 2020 to 31st of January, 2021.

 

Opt-Out from the Scheme on turnover exceeds Rs 5 Crores:

In case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter. Such registered person, whose aggregate turnover crosses 5 crore rupees during a quarter in current financial years, shall opt for furnishing of return on a monthly basis, electronically, on the common portal, from the succeeding quarter.

 

GSTIN Wise Option :

The option to avail of the QRMP Scheme is GSTIN wise and therefore, distinct persons (different GSTINs on same PAN) have the option to avail the QRMP Scheme for one or more GSTINs. In other words, some GSTINs for that PAN can opt for the QRMP Scheme and remaining GSTINs may not opt for the Scheme.

 

Quarterly Filing of GSTR 1 :

The registered persons opting for the Scheme would be required to furnish the details of outward supply in FORM GSTR-1 quarterly as per the rule 59 of the CGST Rule.

 

Invoice Furnishing Facility :

A registered person will have the Invoice Furnishing Facility( IFF) to furnish the details for each of first and second month of  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. This facility for furnishing IFF for previous month would not be available after 13th of the 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.

The said details of outward supplies shall, however, not exceed the value of fifty lakh rupees in each month.

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 two invoices furnished in IFF shall be reflected in FORM GSTR-2B of the concerned recipient of the first month of the quarter and remaining eight invoices furnished in FORM GSTR-1 shall be reflected in FORM GSTR -2B of the concerned recipient of the last month of the quarter.

The said facility would however be available, say for the month of July, from 1st August till 13th August. Similarly, for the month of August, the said facility will be available from 1st September till 13th September.

 The  facility is not mandatory and is only an optional facility made available to the registered persons under the QRMP Scheme.

The details of invoices furnished using the said facility in the first two months are not required to be furnished again in FORM GSTR-1. Accordingly, the details of outward supplies made by such a registered person during a quarter shall consist of details of invoices furnished using IFF for each of the first two months and the details of invoices furnished in FORM GSTR-1 for the quarter.

At his option, a registered person may choose to furnish the details of outward supplies made during a quarter in FORM GSTR-1 only, without using the IFF.

Monthly payment of Tax: The registered person under the QRMP Scheme would be required to pay the tax due on monthly basis in each of the first two months of the quarter.

The Form ‘PMT 06’ is required to be used for the purpose.

The due date of tax payment is the 25th of the succeeding month.

While generating the challan, taxpayers should select “Monthly payment for the quarterly taxpayer” as a reason for generating the challan.

 

Method to calculate Monthly payment of Tax The taxpayer is free to avail either of the following two options provided below for monthly payment of tax during the first two months:-

Fixed Sum Method:  A taxpayer who has furnished a quarterly return in a preceding quarter can opt to pay 35% of the tax paid in cash in the preceding quarter.

Non- availability for Monthly Tax Payment facility:

Monthly tax payment through this method would not be available to those registered persons who have not furnished the return for a complete tax period preceding such month.

A complete tax period means a tax period in which the person is registered from the first day of the tax period till the last day of the tax period.

Self-Assessment Method The registered person can pay the tax due by considering the tax liability on inward and outward supplies and the Input Tax Credit available.

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.

Non- a requirement of Monthly Tax deposit:

In case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due (for the first month or cumulative dues in the second month) or where there is a nil tax liability, the registered person may not deposit any amount for the said months.

Refund Claim:

The claim of refund in respect of the amount deposited for the first two months of a Quarter for payment of tax shall be permitted after the return in FORM GSTR-3B for the said quarter has been furnished. Further, this deposit cannot be used by the taxpayer for any other purpose till the filing of return for the quarter.

Quarterly filing of FORM GSTR-3B The registered persons would be required to furnish FORM GSTR-3B, for each quarter, on or before the 22nd or 24th day of the month succeeding such quarter.

In FORM GSTR-3B, they shall declare the supplies made during the quarter, ITC availed during the Quarter, and all other details required to be furnished therein.

The amount deposited by the registered person in the first two months shall be debited solely to offset the liability furnished in that quarter’s FORM GSTR-3B.

However, any amount left after the filing of that quarter’s FORM GSTR-3B may either be claimed as a refund or may be used for any other purpose in subsequent quarters.

In case of cancellation of registration of such person during any of the first two months of the quarter, he is still required to furnish a return in FORM GSTR-3B for the relevant tax period.

 Applicability of Interest: No interest would be payable in case the tax due is paid in the first two months of the quarter by way of depositing an auto-calculated fixed sum amount by the due date

In case such payment of tax by depositing the system calculated amount in FORM GST PMT-06 is not done by the due date, interest would be payable at the applicable rate, from the due date of furnishing FORM GST PMT-06 till the date of making such payment.

While furnishing quarterly return in FORM GSTR-3B, if it is found that in any or both of the first two months of the quarter, the tax liability net of available credit on the supplies made /received was higher than the amount paid in the challan, then, no interest would be payable provided the person deposit system calculated amount for each of the first two months and discharge entire liability for the quarter in the FORM GSTR-3B of the quarter by the due date.

Further, in case of FORM GSTR-3B for the quarter is furnished beyond the due date, interest would be payable as per the provisions of Section 50 of the CGST Act for the tax liability net of ITC.

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