Circular No. 143/13/2020- GST
CBEC-20/01/08/2020 -GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, dated the 10
th
November, 2020
To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All) / The Principal Director Generals / Director Generals
(All)
Madam/Sir,
Subject: Quarterly Return Monthly Payment Scheme - Reg.
As a trade facilitation measure and in order to further ease the process of doing
business, the GST Council in its 42
nd
meeting held on 05.10.2020, had recommended that
registered person having aggregate turnover up to five (5) crore rupees may be allowed to
furnish return on quarterly basis along with monthly payment of tax, with effect from
01.01.2021. Government has issued following notifications to implement the Scheme of
quarterly return filing along with monthly payment of taxes (hereinafter referred to as
“QRMP Scheme/ Scheme”):
SI.
No.
Notification Remarks
1. Notification No. 81/2020 –
Central Tax, dated
10.11.2020.
Notifies amendment carried out in sub-section (1), (2)
and (7) of section 39 of the CGST Act vide Finance
(No.2) Act, 2019.
2. Notification No. 82/2020 –
Central Tax, dated
10.11.2020.
Makes the Thirteenth amendment (2020) to the CGST
Rules 2017.
4. Notification No. 84/2020 –
Central Tax, dated
10.11.2020.
Notifies class of persons under proviso to section
39(1) of the CGST Act.
5. Notification No. 85/2020 –
Central Tax dated
10.11.2020.
Notifies special procedure for making payment of tax
liability in the first two months of a quarter
2. Various issues related to notifications issued to implement the QRMP Scheme have
been examined. In order to explain the Scheme in simple terms and in order to ensure
uniformity in implementation across field formations, the Board, in exercise of its powers
conferred under section 168 (1) of the Central Goods and Services Act, 2017 (hereinafter
referred to as the CGST Act), hereby clarifies various issues in succeeding paragraphs.
Circular No. 143/13/2020- GST
3. Eligibility for the Scheme
In terms of notification No. 84/2020- Central Tax, dated 10.11.2020, a registered
person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate
turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP
Scheme. It is clarified that the aggregate annual turnover for the preceding financial year
shall be calculated in the common portal taking into account the details furnished in the
returns by the taxpayer for the tax periods in the preceding financial year. This new Scheme
will be effective from 01.01.2021. Further, in case the aggregate turnover exceeds 5 crore
rupees during any quarter in the current financial year, the registered person shall not be
eligible for the Scheme from the next quarter.
4. Exercising option for QRMP Scheme
4.1 Facility to avail the Scheme on the common portal would be available throughout the
year. In terms of rule 61A of the Central Goods and Services Tax Rules, 2017 (hereinafter
referred as CGST Rules), a registered person can opt in for any quarter from first day of
second month of preceding quarter to the last day of the first month of the quarter. In order to
exercise this option, the registered person must have furnished the last return, as due on the
date of exercising such option.
For example: A registered person intending to avail of the Scheme for the quarter ‘July to
September’ can exercise his option during 1
st
of May to 31
st
of July.
If he is exercising his option on 27th July for the quarter (July to September), in such case, he
must have furnished the return for the month of June which was due on 22/24th July.
4.2 Registered persons are not required to exercise the option every quarter. Where such
option has been exercised once, they shall continue to furnish the return as per the selected
option for future tax periods, unless they revise the said option.
4.3 For the first quarter of the Scheme i.e. for the quarter January, 2021 to March, 2021,
in order to facilitate the taxpayers, it has been decided that all the registered persons, whose
aggregate turnover for the FY 2019-20 is up to 5 crore rupees and who have furnished the
return in FORM GSTR-3B for the month of October, 2020 by 30
th
November, 2020, shall be
migrated on the common portal as below. Therefore, taxpayers are advised to furnish the
return of October, 2020 in time so as to be eligible for default migration. The taxpayers who
have not filed their return for October, 2020 on or before 30
th
November, 2020 will not be
migrated to the Scheme. They will be able to opt for the Scheme once the FORM GSTR-3B
as due on the date of exercising option has been filed.
Sl.
No.
Class of registered person Default
Option
1 Registered persons having aggregate turnover of up to 1.5 crore
rupees who have furnished FORM GSTR-1 on quarterly basis
in the current financial year
Quarterly
return
2 Registered persons having aggregate turnover of up to 1.5 crore
rupees who have furnished FORM GSTR-1 on monthly basis in
the current financial year
Monthly
Return
3 Registered persons having aggregate turnover more than 1.5
crore rupees and up to 5 crore rupees in the preceding financial
Quarterly
return
Circular No. 143/13/2020- GST
year
Above default option has been provided for the convenience of registered persons based on
their anticipated behaviour. However, such registered persons are free to change the option as
above, if they so desire, from 5
th
of December, 2020 to 31
st
of January, 2021. It is re-iterated
that any taxpayer whose aggregate turnover has exceeded 5 crore rupees in the financial year
2020-21, shall opt out of the Scheme.
4.4 Similarly, the facility for opting out of the Scheme for a quarter will be available from
first day of second month of preceding quarter to the last day of the first month of the quarter.
4.5 All persons who have obtained registration during any quarter or the registered
persons opting out from paying tax under Section 10 of the CGST Act during any quarter
shall be able to opt for the Scheme for the quarter for which the opting facility is available on
the date of exercising option as in para 4.1.
4.6 It is also clarified that such registered person, whose aggregate turnover crosses 5
crore rupees during a quarter in current financial year, shall opt for furnishing of return on a
monthly basis, electronically, on the common portal, from the succeeding quarter. In other
words, in case the aggregate turnover exceeds 5 crore rupees during any quarter in the current
financial year, the registered person shall not be eligible for the Scheme from the next
quarter.
4.7 It is further clarified that the option to avail the QRMP Scheme is GSTIN wise and
therefore, distinct persons as defined in Section 25 of the CGST Act (different GSTINs on
same PAN) have the option to avail the QRMP Scheme for one or more GSTINs. In other
words, some GSTINs for that PAN can opt for the QRMP Scheme and remaining GSTINs
may not opt for the Scheme.
5. Furnishing of details of outward supplies under section 37 of the CGST Act.
5.1 The registered persons opting for the Scheme would be required to furnish the details
of outward supply in FORM GSTR-1 quarterly as per the rule 59 of the CGST Rule.
5.2 For each of the first and second months of a quarter, such a registered person will
have the facility (Invoice Furnishing Facility- IFF) to furnish the details of such outward
supplies to a registered person, as he may consider necessary, between the 1
st
day of the
succeeding month till the 13
th
day of the succeeding month. The said details of outward
supplies shall, however, not exceed the value of fifty lakh rupees in each month. It may be
noted that after 13
th
of the month, this facility for furnishing IFF for previous month would
not be available. As a facilitation measure, continuous upload of invoices would also be
provided for the registered persons wherein they can save the invoices in IFF from the 1
st
day
of the month till 13
th
day of the succeeding month. The facility of furnishing details of
invoices in IFF has been provided so as to allow details of such supplies to be duly reflected
in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.
For example, a registered person who has availed the Scheme wants to declare two
invoices out of the total ten invoices issued in the first month of quarter since the recipient of
supplies covered by those two invoices desires to avail ITC in that month itself. Details of
these two invoices may be furnished using IFF. The details of the remaining 8 invoices shall
be furnished in FORM GSTR-1 of the said quarter. The two invoices furnished in IFF shall
be reflected in FORM GSTR-2B of the concerned recipient of the first month of the quarter
and remaining eight invoices furnished in FORM GSTR-1 shall be reflected in FORM
Circular No. 143/13/2020- GST
GSTR-2B of the concerned recipient of the last month of the quarter. The said facility would
however be available, say for the month of July, from 1
st
August till 13
th
August. Similarly, for
the month of August, the said facility will be available from 1
st
September till 13
th
September.
It is re-iterated that said facility is not mandatory and is only an optional facility
made available to the registered persons under the QRMP Scheme.
5.3 The details of invoices furnished using the said facility in the first two months are not
required to be furnished again in FORM GSTR-1. Accordingly, the details of outward
supplies made by such a registered person during a quarter shall consist of details of invoices
furnished using IFF for each of the first two months and the details of invoices furnished in
FORM GSTR-1 for the quarter. At his option, a registered person may choose to furnish the
details of outward supplies made during a quarter in FORM GSTR-1 only, without using the
IFF.
6. Monthly Payment of Tax
6.1 The registered person under the QRMP Scheme would be required to pay the tax due
in each of the first two months of the quarter by depositing the due amount in FORM GST
PMT-06, by the twenty fifth day of the month succeeding such month. While generating the
challan, taxpayers should select “Monthly payment for quarterly taxpayer” as reason for
generating the challan. The said person can use any of the following two options provided
below for monthly payment of tax during the first two months -
(a) Fixed Sum Method: A facility is being made available on the portal for
generating a pre-filled challan in FORM GST PMT -06 for an amount equal to
thirty five per cent. of the tax paid in cash in the preceding quarter where the
return was furnished quarterly; or equal to the tax paid in cash in the last month of
the immediately preceding quarter where the return was furnished monthly.
For easy understanding, the same is explained by way of illustration in table
below:
i. In case the last return filed was on quarterly basis for Quarter Ending March,
2021:
Tax paid in Cash in Quarter (January
- March, 2021)
Tax required to be paid in each of
the months – April and May, 2021
CGST 100
SGST 100
IGST 500
Cess 50
CGST 35
SGST 35
IGST 175
Cess 17.5
ii. In case the last return filed was monthly for tax period March, 2021:
Tax paid in Cash in March, 2021 Tax required to be paid in each of
the months – April and May, 2021
CGST 50
SGST 50
IGST 80
Cess -
CGST 50
SGST 50
IGST 80
Cess -
Circular No. 143/13/2020- GST
Monthly tax payment through this method would not be available to those registered
persons who have not furnished the return for a complete tax period preceding such
month. A complete tax period means a tax period in which the person is registered
from the first day of the tax period till the last day of the tax period.
(b) Self-Assessment Method: The said persons, in any case, can pay the tax due by
considering the tax liability on inward and outward supplies and the input tax credit available,
in FORM GST PMT-06. In order to facilitate ascertainment of the ITC available for the
month, an auto-drafted input tax credit statement has been made available in FORM GSTR-
2B, for every month.
6.2 The said registered person is free to avail either of the two tax payment method above
in any of the two months of the quarter.
6.3 It is clarified that in case the balance in the electronic cash ledger and/or electronic
credit ledger is adequate for the tax due for the first month of the quarter or where there is nil
tax liability, the registered person may not deposit any amount for the said month. Similarly,
for the second month of the quarter, in case the balance in the electronic cash ledger and/or
electronic credit ledger is adequate for the cumulative tax due for the first and the second
month of the quarter or where there is nil tax liability, the registered person may not deposit
any amount.
6.4 Any claim of refund in respect of the amount deposited for the first two months of a
quarter for payment of tax shall be permitted only after the return in FORM GSTR-3B for
the said quarter has been furnished. Further, this deposit cannot be used by the taxpayer for
any other purpose till the filing of return for the quarter.
7. Quarterly filing of FORM GSTR-3B
Such registered persons would be required to furnish FORM GSTR-3B, for each
quarter, on or before 22
nd
or 24
th
day of the month succeeding such quarter. In FORM
GSTR-3B, they shall declare the supplies made during the quarter, ITC availed during the
quarter and all other details required to be furnished therein. The amount deposited by the
registered person in the first two months shall be debited solely for the purposes of offsetting
the liability furnished in that quarter’s FORM GSTR-3B. However, any amount left after
filing of that quarter’s FORM GSTR-3B may either be claimed as refund or may be used for
any other purpose in subsequent quarters. In case of cancellation of registration of such
person during any of the first two months of the quarter, he is still required to furnish return
in FORM GSTR-3B for the relevant tax period.
8. Applicability of Interest
8.1. For registered person making payment of tax by opting Fixed Sum Method
i. No interest would be payable in case the tax due is paid in the first two months of the
quarter by way of depositing auto-calculated fixed sum amount as detailed in para 6.1(a)
above by the due date. In other words, if while furnishing return in FORM GSTR-3B, it is
found that in any or both of the first two months of the quarter, the tax liability net of
available credit on the supplies made /received was higher than the amount paid in challan,
then, no interest would be charged provided they deposit system calculated amount for each
of the first two months and discharge their entire liability for the quarter in the FORM
GSTR-3B of the quarter by the due date.
Circular No. 143/13/2020- GST
ii. In case such payment of tax by depositing the system calculated amount in FORM
GST PMT-06 is not done by due date, interest would be payable at the applicable rate, from
the due date of furnishing FORM GST PMT-06 till the date of making such payment.
iii. Further, in case FORM GSTR-3B for the quarter is furnished beyond the due date,
interest would be payable as per the provisions of Section 50 of the CGST Act for the tax
liability net of ITC.
Illustration 1 –
A registered person, who has opted for the Scheme, had paid a total amount of Rs. 100/- in
cash as tax liability in the previous quarter of October to December. He opts to pay tax under
fixed sum method. He therefore pays Rs. 35/- each on 25
th
February and 25
th
March for
discharging tax liability for the first two months of quarter viz. January and February. In his
return for the quarter, it is found that liability, based on the outward and inward supplies,
for January was Rs. 40/- and for February it was Rs. 42/-. No interest would be payable for
the lesser amount of tax (i.e. Rs. 5 and Rs. 7 respectively) discharged in these two months
provided that he discharges his entire liability for the quarter in the FORM GSTR-3B of the
quarter by the due date.
Illustration 2 –
A registered person, who has opted for the Scheme, had paid a total amount of Rs. 100/- in
cash as tax liability in the previous quarter of October to December. He opts to pay tax under
fixed sum method. He therefore pays Rs. 35/- each on 25
th
February and 25
th
March for
discharging tax liability for the first two months of quarter viz. January and February. In his
return for the quarter, it is found that total liability for the quarter net of available credit was
Rs. 125 but he files the return on 30
th
April. Interest would be payable at applicable rate on
Rs. 55 [Rs. 125 – Rs. 70 (deposit made in cash ledger in M1 and M2)] for the period between
due date of quarterly GSTR 3B and 30
th
April
8.2 For registered person making payment of tax by opting Self-Assessment Method
Interest amount would be payable as per the provision of Section 50 of the CGST Act for tax
or any part thereof (net of ITC) which remains unpaid / paid beyond the due date for the first
two months of the quarter.
8.3 Interest payable, if any, shall be paid through FORM GSTR-3B.
9. Applicability of Late Fee - Late fee is applicable for delay in furnishing of return /
details of outward supply as per the provision of Section 47 of the CGST Act. As per the
Scheme, the requirement to furnish the return under the proviso to sub-section (1) of Section
39 of the CGST Act is quarterly. Accordingly, late fee would be the applicable for delay in
furnishing of the said quarterly return / details of outward supply. It is clarified that no late
fee is applicable for delay in payment of tax in first two months of the quarter.
10. It is requested that suitable trade notices may be issued to publicize the contents of
this Circular. Hindi version will follow.
11. Difficulty, if any, in the implementation of the above instructions may please be
brought to the notice of the Board.
(Yogendra Garg)
Principal Commissioner
y.garg@nic.in
