Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme
Introduction : Government under news and update section has notified scheme for quarterly return filing and monthly payment of taxes; it is important to know which are the taxpayers that are eligible to avail the scheme or which are the taxpayers who has option file return on quarterly basis. In this article we will cover all the relevant questions in relation to this scheme. Person will be filling GSTR-3B and GSTR-1 on quarterly basis
Who is eligible assessee and what is the effective date of scheme?
Scheme will be effective from 1st January, 2021; to be eligible under this scheme assessee shall have annual aggregate turnover up to Rs. 5 Crore in previous financial year and who is required to file Form GSTR 3B.
If during current year annual aggregate turnover is exceeding Rs. 5 Crore than assessee will be ineligible to for the scheme from next quarter.
Illustration : Turnover of assessee was Rs. 4 Crore in preceding financial year in current year turnover of assessee in first quarter (April-June) is Rs. 2 Crore in second quarter (July-Sep) is Rs. 2 Crore in month of November turnover of assessee exceeded Rs. 5 Crore.
What is the time period for which assessee will be eligible to opt for above scheme?
In the given case as stated earlier person will be eligible to opt for composition scheme if annual aggregate turnover up to Rs. 5 Crore in previous financial year; he can opt for this scheme in current year up to the turnover of Rs. 5 Crore; in case his turnover exceeds Rs. 5 Crore than in that case assessee will be ineligible to for the scheme from next quarter. Therefore, person will be eligible to opt for composition scheme only up to 3rd quarter; after that he will be required to file return on monthly basis.
Whether any person who has obtain new registration or who has opted out of composition scheme can opt for this scheme of quarterly filling of return?
Yes, any person who has obtained new registration or who has opted out of composition scheme can opt for monthly payment of tax and quarterly filling of return.
What if assessee is registered in more than one states; Whether they can opt for scheme under GSTN of one state and normal scheme for other state/states or vice-versa?
The scheme is applicable GSTN wise and not PAN wise i.e., it may happen that one GSTN is opting for the scheme and another GST is not opting for quarterly return filling and monthly tax payment scheme.
What is the time limit within which person is required to opt for the scheme?
There is no limit to opting such scheme person can avail such facility at anytime throughout the year at any time; further option once exercised, will be continue till registered person revises such option or he becomes ineligible due to turnover exceeding specified limit (i.e., Rs 5 Crore).
How changes on portal will be made and how assessee will be migrated by default?
Assessee who has furnished the return in Form GSTR-3B for the month of October, 2020 by 30thNovember, 2020; and whose annual aggregate turnover in financial year 2019-20 is up to Rs. 5 Crore, then such person will be automatically migrated for above scheme.
- If annual aggregate turnover in financial year 2019-20 up to Rs 1.5 Crore and who has furnished GSTR-1 on quarterly basis than for him default return period will be quarterly basis.
- If such above prescribed person has furnished GSTR-1 on monthly basis than in that case default return option for him will be on monthly basis.
- In case if annual aggregate turnover in financial year 2019-20 more than Rs 1.5 Crore and is up to Rs 5 Crore; in preceding financial year than default return filing period will be on quarterly basis.
Such person who are can be migrated by default to quarterly filing of return and wants to file the return on monthly basis than in that case such person can choose to remain out of the scheme by exercising their option from 5thDecember, 2020 till 31st January, 2021.
How monthly payment of tax is to be done in case person opts for such scheme?
In case if person opts for the scheme than he needs to pay tax on 25th of next month in case of first and second month of the quarter and in challan for payment of tax he will be required to select “Monthly payment for quarterly taxpayer”. Above payment will be used by person for adjusting liability in form GSTR-3B which will be filed quarterly by the taxpayer.