The GST Council in its 42nd meeting held on October 05, 2020 recommended that the registered persons having aggregate turnover up to Rs 5 crores shall be allowed to furnish return on quarterly basis along with monthly payment of tax, with effect from January 01, 2020. In this regard, the Government on November 10, 2020 issued various Notifications.

Quarterly Return Monthly Payment Scheme

1. Eligibility

Taxpayers having aggregate turnover of up to 5 Crore rupees in the Preceding Financial year.

This new Scheme will be effective from January 01, 2021. The GSTN system would itself compute the aggregate annual turnover of the taxpayer

2. Exercising option

Taxpayers can opt in any quarter first day of second month or preceding quarter to the last day of the first month of the quarter

The scheme is not required opted to be for each quarter separately. Once it is exercised it would be valid for future tax periods

3. Criteria

Taxpayer must have furnished the last return, as due on the date of exercising such option

4. Option once exercised

Taxpayer are not required to exercise the option every quarter, shall furnish return, unless they revise the said option

5. Period

For first quarter of the scheme, January, 2021 to March, 2021, who have filed GSTR-3B for the month of October, 2020 by 30th November, 2020

6. Migration

Taxpayer who have not field their return GSTR-3B for October, 2020, by 30th November, 2020, shall not be migrated on the common portal.

7. Quarterly furnishing of details of outward supply with Invoice Furnishing Facility

The registered persons opting for the Scheme would be required to furnish the details of outward supply in Form GSTR-1 on quarterly basis. Invoice furnishing facility (‘IFF’) has been introduced in respect of reporting the invoice for details of supply made to registered persons for the first two months of the quarter. This facility of IFF is optional

The facility of furnishing details of invoices in IFF has been provided so that such supplies shall be duly reflected in the Form GSTR-2A and Form GSTR-2B of the concerned recipient.

8. Payment of Tax in Quarterly Return Monthly Payment Scheme

Fixed sum method

An amount equal to thirty five percent of the tax paid in cash in the preceding quarter where return was filed quarterly or equal to tax paid in cash in the last month immediately preceding quarter where the return was filed monthly.

A facility would be made available on the portal for generating a pre-filled challan in Form GST PMT-06.