As we know QRMP system (i.e. Quarterly return and monthly payment) of filing of GSTR 3B and IFF system for GSTR 1 will start from January 2021.
In the scheme it was mentioned that based on earlier option of filing GST return one would be transferred to either monthly or quarterly filing of GST return which is as under:
|Sl. No.||Class of RPs with AATO of||Default Return Option|
|1||Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on quarterly basis in current FY||Quarterly|
|2||Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on monthly basis in current FY||Monthly|
|3||More than Rs 1.5 Cr. and up to Rs 5 Cr. in preceding FY||Quarterly|
Now GST, from today morning is sending the below message to all taxpayers:
“Dear 27AXXX2456QXX7 as per QRMP scheme you are defaulted to file your GSTR-1 and 3B on monthly basis from Jan-21. To change pls visit services.gst.gov.in”
After reading the above message especially the highlighted part all the taxpayers have panicked and started calling their C.A. or tax professionals and have started asking whether they have defaulted in filing any return or not.
Hence there are two issues in above message:
1. The message has been loosely drafted and the English or construction of sentence is very bad where actually the context of the message is that “your default option to File GSTR 1 and GSTR 3B from Jan-21 is monthly” and for which they have mentioned that “you are defaulted to file your GSTR-1 and 3B on monthly basis“. The word defaulted has created a lot of panic and the taxpayers should not panic as no default has been caused in filing of GST return.
2. According to above table people with GST turnover upto 1.5 crore and who have filed quarterly GSTR 1 should be kept under quarterly filing. However if a person who has registered in October, November or December and has opted for quarterly filing of GSTR 1 but has not filed any GSTR 1 as the same is due in January 2021, by default he is kept under monthly filing of return under the new system.
As per the circular of CBIC on QRMP system, one can exit from above default option between 05.12.2020 to 31.01.02021 for the first quarter and for the later quarter one can always choose and switch based on the requirement.
Do share this post with more and more people so that people don’t panic.