November 20, 2020
1. Who can opt for the Scheme
From January 1, 2021 the following registered persons have an option to file their quarterly returns as well as pay their taxes on a monthly basis:
· All those registered persons will be considered eligible who were supposed to file the Form GSTR 3B along with the AATO for an amount up to Rs. 5 Crore in the previous Financial Year. In case the AATO crosses the amount of Rs. 5 Crores in a quarter then the registered persons will not be considered eligible for the said scheme from the next quarter.
· In case a new person comes to seek registration or a person is opting out of the Composition Scheme, then they can also avail the benefits of the said scheme.
· In order to avail the option of the said Scheme they need to have the GSTIN. There are certain GSTINs who have PAN can avail the scheme while the rest of the GSTINs can stay out of it.
2. Changes on the GST Portal
For the first quarter of 2021 i.e. from January to March all the registered persons who have their AATO up to Rs. 5 Crores for the Financial Year 2019-20 along with furnishing the returns as per the Form GSTR 3B by November 30, 2020 for the month of October, will be dealt with as per the following GST System:
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S.No.
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Class of registered persons with AATO of
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Return Option assigned by GST System
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1.
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Up to Rs 1.5 Crores, who have furnished Form GSTR-1 on quarterly basis in current Financial Year
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Quarterly
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2.
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Up to Rs 1.5 Crore, who have furnished Form GSTR-1 on monthly basis in current Financial Year
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Monthly
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3.
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More than Rs 1.5 Crore and up to Rs 5 Crore in preceding Financial Year
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Quarterly
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3. When can a Person opt for the Scheme
· In any of the quarter this facility can be availed by the registered person.
· Until and unless the registered person himself opts out of the Scheme or his AATO exceeds the amount of Rs. 5 Crores, the QRMP Scheme will stay valid.
· The Registered persons also have an option to stay out of the said scheme, the ones which are assigned by the GST System. They have an option to do so between December 5, 2020 to January 31, 2020
4. The facility of Invoice Furnishing Facility (IFF) is available for all those registered persons who are choosing to opt out of the Scheme. This is provided so that the outwards supplies that are made to the registered persons are then reflected in their GSTR 2A as well as 2B forms.
5. Payment of tax under the scheme:
· In order to generate the Challan, the registered persons will have to pay their due taxes in the first two months by the 25th of the next month in the said quarter. They need to select the “Monthly Payment for Quarterly tax payers”.
· As soon as the registered persons have adjusted their ITC, they have an option to choose either the Fixed Sum Method (Pre – Filled Challan) or the Self - Assessment Method (Actual Tax Due) in order to pay their monthly tax in the first two months.
· In case there is no tax liability then there is no need to make a deposit in that month.
· The tax deposits that are made in the first two months can only be used in order to adjust the liability in the quarters in the GSTR - 3B Form. This cannot be used for any other purpose until the returns are filed for the quarter.
6. In order to know about details of the Notification and CBIC Circular click on the following links:
· https://www.cbic.gov.in/htdocs-cbec/gst/central-tax-notfns-2017
· https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_143_11_2020.pdf
