1. Who can opt for the scheme: Following registered person (hereinafter RP) can file quarterly returns and pay tax on monthly basis w.e.f. 01.01.2021 :
- An RP who is required to file Form GSTR 3B with Aggregate annual turnover (AATO) of up to Rs 5 Cr. in the previous financial year is eligible. If AATO crosses Rs 5 Cr. during a qtr., RP will become in-eligible for the Scheme from next quarter.
- Any person obtaining a new registration or opting out of Composition Scheme can also opt for this Scheme.
- The option to avail this Scheme can be availed GSTIN wise. Therefore, few GSTINs for that PAN can opt for the Scheme and remaining GSTINs can remain out of the Scheme.
2. Changes on the GST Portal: For qtr. Jan., 2021 to March, 2021, all RPs whose AATO for the FY 2019-20 is up to Rs 5 Cr. and have furnished the return in Form GSTR-3B for the month of October, 2020 by 30th November 2020, will be migrated by default in the GST system as follows:
|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|
3. When can a person opt for the scheme:
- Facility can be availed throughout the year, in any quarter.
- Option for QRMP Scheme, once exercised, will continue till RP revises the option or his AATO exceeds Rs 5 Cr.
- RPs migrated by default can choose to remain out of the scheme by exercising their option from 5th December, 2020 till 31st Jan., 2021.
The RPs opting for the scheme can avail the facility of Invoice Furnishing Facility (IFF), so that the outward supplies to registered person is reflected in their Form GSTR 2A & 2B.
4. Payment of tax under the scheme:
- RPs need to pay tax due in each of first two months (by 25th of next month) in the Qtr, by selecting “Monthly payment for quarterly taxpayer” as reason for generating Challan.
- RPs can either use Fixed Sum Method (pre-filled challan) or Self-Assessment Method (actual tax due), for monthly payment of tax for first two months, after adjusting ITC.
- No deposit is required for the month, if there is nil tax liability.
- Tax deposited for first 02 months can be used for adjusting liability for the qtr. in Form GSTR-3B and can’t be used for any other purpose till the filing of return for the qtr.
Thus although this system is providing benefit for filing of GSTR 3B quarterly but do remember you have to still pay some amount in cash every month, which means you still have to make full calculations and it will still consume full time.
The only help it will give is save cash flow for a small time as one don’t have to pay full tax in quarterly system.
Also, it is important to mention here that many registered person would be transferred to new system by default if they meet the above criteria.
Hence, if you or any of your client fulfills above criteria and you don’t want to shift into this new system you will have to opt out of this system between 05.01.2021 to 31.01.2021.