On December 5, 2020, the Central Government in exercise of the powers conferred under sub-section (1) of section 39 read with sub-section (7) of section 39 of the Central Goods and Services Tax Act, 2017 (12 of 2017) has initiated the “Quarterly Return filing & Monthly Payment (QRMP)” scheme for small taxpayers under the GST System whose aggregate annual turnover of up to Rs 5 crore in the preceding financial year. The notifications for the same were issued by Central Board of Indirect Taxes and Customs (CBIC).
- The scheme allows the taxpayers to file GSTR-3B (sales) on a quarterly basis and pay tax every month w.e.f. January 1, 2021.
- Under this, the registered person or a taxpayer will furnish a return for every quarter, under sub-rule (1) of rule 61A of the Central Goods and Services Tax Rules, 2017 and pay the monthly tax under sub-section (7) of section 39 of the same Act.
- After the above changes the act is named as the Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020.
- This scheme is optional and can be availed based on GSTIN (Goods and Services Tax Identification Number).
- It should be noted that the recommendation for the scheme was made by the GST Council in its 42nd meeting held on October 5, 2020.
Eligibility: Taxpayers with Aggregate turnover of up to Rs 5cr and have filed their October GSTR-3B (sales) return by Nov. 30, 2020.
–A registered person who wants to file GSTR-3B quarterly should indicate the same on GST portal, from the 1st of the second month of the preceding quarter until the last day of the first month of the quarter for which such option is being exercised.
- In terms of rule 61A of the Central Goods and Services Tax Rules, 2017, a registered person can opt in for any quarter from the first day of second month of preceding quarter to the last day of the first month of the quarter.
- Quarterly GSTR-1 and GSTR-3B can also be filed through an SMS.
–Taxpayers can make GST payments through challan every month either by Self Assessment Method (SAM) or through Fixed Sum Method (FSM) i.e. 35% of net cash liability of previous filed GSTR-3B of the quarter.
- Invoice Furnishing Facility (IFF): The taxpayers who opted for the QRMP scheme can use the Invoice Furnishing Facility (IFF) which allows quarterly GSTR-1 filers to upload their invoices every month. However, the IFF can be used only when a taxpayer whose turnover is up to Rs.1.5 crore.
–Once the registered person has opted for quarterly filing, he will have to continue to furnish his return every quarter for all future tax periods
–In case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person will not be eligible for the Scheme from the next quarter.
–Late fee under QRMP scheme: The late fee should be paid as follows if the quarterly GSTR-3B is not filed within due date, subject to a maximum late fees of Rs 5,000.
Recent Related News:
i.On September 29, 2020, the President of India, Ram Nath Kovind gave his assent to the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 which will amend 5 Acts viz. the Income-tax Act, 1961, Central Goods and Services Tax Act, 2017, Finance Act, 2019, the Direct Tax Vivad se Vishwas Act, 2020 and the Finance Act, 2020.
ii.In accordance with the latest study by OECD’s Global Forum on transparency and exchange of information for tax purposes, referring to the period from July 2015 to June 2018, India was named among the top-three countries as EOI (Exchange of Information) partners along with France and Germany.
About Central Board of Indirect Taxes and Customs (CBIC):
Chairman– M. Ajit Kumar
Parent Ministry– Ministry of Finance
Headquarter – New Delhi