39.1.2 Eligible RPs and conditions for Quarterly Return monthly payment (QRMP) under 1^st Proviso to Section 39(1)

Question-1 [ICSI-P-J22-2A(ii)-5]

Nizam Traders, registered in New Delhi, is engaged in supply of taxable goods. Its turnover in the preceding FY 2020-2021 was Rs.230 lakh and was furnishing its GST return on monthly basis. In the beginning of April month in the current FY 2021-2022, it sought advice from its tax consultant, Vaibhav Consultants, whether it can furnish its GST on quarterly basis from now onwards. Vaibhav Consultants advised Nizam Traders that it cannot furnish its return on quarterly basis as the GST law does not provide for quarterly return any circumstances. Discuss the technical veracity of the advice given by Vaibhav Consultants.

Answer

No, the advice given by Vaibhav Consultants is not valid in law. With effect from 01.01.2021, a quarterly return has been introduced under GST law where the payment of tax is to be made on monthly basis. The scheme is known as Quarterly Return Monthly Payment (QRMP) Scheme.

The scheme has been introduce as a trade facilitation measure and in order to further case the process of doing business. It is an optional return filing scheme, introduced for small taxpayers having aggregate annual turnover (PAN based) of upto Rs. 5 crore in the current and preceding financial year to furnish their Form GSTR-1 and Form GSTR-3B on a quarterly basis while paying their tax on a monthly basis through a simple challan. Thus the tax payers need to file only four GSTR-3B returns in a year. Similarly, they would be required to file only four GSTR-1 returns since Invoice Furnishing Facility (IFF) is provided under this scheme. Opting of QRMP Scheme is GSTIN wise. Distinct person can avail QRMP Scheme option for one or more GSTINs for a PAN can opt for the QRMP Scheme and remaining GSTINs may not opt for the said scheme.

Since, the aggregate turnover of Nizam Traders does not exceed Rs. 5 crores in the preceding financial year, it is eligible for furnishing the return on quarterly basis till the time its turnover in the current financial year does not exceed Rs. 5 crores. In case its aggregate turnover crosses Rs. 5 crore during a quarter in the current financial year, it shall no longer be eligible for furnishing of return on quarterly basis from the first month of the succeeding quarter and needs to opt for furnishing of return on a monthly basis.

Question-1A [ICSI-P-J21-1(c)(i)-2] [ICSI-P-J21-3(a)-4]

Discuss briefly the salient features of Quarterly Return Monthly Payment (QRMP) scheme under GST.

Answer

Quarterly Return Monthly Payment (QRMP) Scheme

To help the small tax payers whose aggregate annual turnover is up to Rs. 5 crore in the preceding financial year 2019-20. CBIC has launched Quarterly Return Monthly Payment (QRMP) scheme under GST. This scheme allows the taxpayers to file form GSTR-3B on a quarterly basis and pay tax every month. This is an optional scheme. Registered person opting for the scheme would be required to furnish the details of outward supply in FORM GSTR-1 quarterly as per Rule 59 of the GST Rules. At the same time, the tax payer has been given a facility to upload their tax invoices on monthly basis on Invoice Furnishing Facility available on GSTN Portal.

Question-1B [ICAI-F-N22-6(a)-4]

Mr. Mahendra, a registered person, came to know about QRMP (Quarterly Return-Monthly Payment) scheme but was unable to make a decision whether to opt for the same or not. Describe the eligibility criteria and benefits of QRMP Scheme to help Mr. Mahendra make a decision regarding the same.

Answer

Eligibility criteria for QRMP scheme Registered persons,

• other than supplier of online information and database access or retrieval services (OIDAR) located in non-taxable territory and providing such services to a non-taxable online recipient and whose aggregate annual turnover (PAN based) is up to Rs.5 crore in the preceding financial year.

• who have opted to furnish quarterly returns under QRMP scheme

• who have furnished the last return due on the date of exercising such option are eligible to opt for QRMP scheme.

Benefits of QRMP scheme

• It is a trade facilitation measure and eases the process of doing business.

• It will significantly reduce the compliance burden on such taxpayers as now the taxpayers need to file GSTR-3B returns and Form GSTR-1 - on quarterly basis only 4 times a year.

39.2.1 Return of TDS in GSTR-7 by deductor and its Time limit = 10^th of next month

Question-1 [ICSI-E-J21-O-93-1]

A return under GST in form _______ is required to be filed by a Tax Deductor by ___________ .

(A) GSTR-4; 18th of the month succeeding quarter (B) GSTR-5; 20th of the next month (C) GSTR-6; 13th of the next month (D) GSTR-7, 10th of the next month

39.3 Return & payment of tax in GSTR-5 by non-resident Taxable Person [NRTP] and its time limit

Question-1 [ICSI-E-D20-O-95-1]

A return under GST in form ------------- is required to be filed by a Non-resident taxable person by -------------.

(A) GSTR-4; 18th of the next month (B) GSTR-5; 20th of the next month (C) GSTR-6; 13th of the next month (D) GSTR-7; 10th of the next month

Question-1A [ICSI-E-D21-O-93-1]

....................is required to be filed by the non-resident taxable person within ..............

(A) GSTR-4, 18th day of the month succeeding quarter (B) GSTR-5, 20th of the next month (C) GSTR-6, 13th of the next month (D) GSTR-7, 10th of the next month

Question-1B [ICSI-E-J18-O-87-1]

Non-resident taxable person is required to provide details in the return for non-resident foreign taxable person in the Return Form No. :

(A) GSTR-3 (B) GSTR-5 (C) GSTR-8 (D) None of the above

39.5.1 Quarterly statement in CMP-08 for Payment of Tax by Composition Dealer by 18^th of month succeeding such quarter

Question-1 [ICSI-E-J19-O-81-1]

Supplier registered under composition scheme must file return within:

(A) 7 days after end of every month

(B) 20 days after end of every month

(C) 18 days after end of every quarter

(D) 20 days after end of every quarter

Question-1A [ICSI-P-D19-3(b)(iv)-1]

Under section 10, the ‘due date for’ filing return by a registered person is 20 days after the end of each quarter.

39.5.2 Yearly Return in GSTR-4 by 30^th April of next FY

Question-1 [ICSI-E-D20-87-1]

A registered person/tax payer opting under composition levy as per provisions contained under CGST Act, 2017 is required to file an annual return in form number --------- by --------- following the end of financial year.

(A) GSTR-3; 20th April (B) GSTR-4; 30th April 90. (C) GSTR-5; 10th April (D) GSTR-6; 13th April

Question-1A [ICSI-E-D21-80-1]

Furnishing of details of outward supplies and of inward suppliers as per section 37 and 38 of CGST Act, 2017 are not applicable on a person paying tax under composition scheme. However, a person who has opted for composition scheme is still liable to file a return by 30th April, following the end of financial year in Form No. ...................

(A) GSTR 6 (B) GSTR 3 (C) GSTR 5 (D) GSTR 4

Question-1B [ICSI-E-J21-82-1]

Ramji Medicals is a retail trader of medicines covered by composition levy of GST. For the financial year 2020-21, what is the ‘due date’ for filing annual return GSTR-4?

(A) 31.05.2021 (B) 30.04.2021 (C) 30.09.2021 (D) 31.07.2021

39.6 Monthly Return in GSTR-6 by Input Service Distributor (ISD) by 13^th of next month

Question-1 [ICSI-E-D20-O-86-1]

Input Service Distributor (ISD) is required to file monthly return by ---------- of the following month in form ----------------.

(A) 13th; GSTR-6; (B) 18th; GSTR-5; (C) 13th; GSTR-4; (D) 18th; GSTR-3

Question-1A [ICSI-E-J18-O-88-1] [ICMAI-I-D18-1(ii)-2]

Input Service Distributor shall file the return in GSTR-6 for the input service distributed by :

(A) 10th of the next month (B) 18th of the next month (C) 13th of the next month (D) 20th of the next month.

Question-1B [ICSI-E-J21-O-88-1]

The due date for filling of GSTR 6 as per GST Act :

(A) 1st of the following month (B) 11th of the following month (C) 13th of the following month (D) 20th of the following month

39.7.1 Time Limit for rectification of error, mistakes or omission etc

Question-1 [ICAI-I-N19-8b-5]

Discuss the provisions of Section 39(9) of the CGST Act, 2017,relating to rectification of
errors/omissions in GST returns already filed and also state its exceptions. State the time
limit for making such rectification.

Answer

Omission or incorrect particulars discovered in the returns filed under section 39 can be rectified in the return to be filed for the month/quarter during which such omission or incorrect particulars are noticed. Any tax payable as a result of such error or omission will be required to be paid along with interest.

Exception

Section 39(9) of the CGST Act does not permit rectification of error/omission discovered on account of scrutiny, audit, inspection or enforcement activities by tax authorities. The time limit for making such rectification is earlier of the following dates:

(i) Due date for filing return for September month of next financial year or

(ii) Actual date of filing annual return

39.11 Furnishing of GSTR-3B, GSTR-1 or CMP-08 by short messaging service facility

Question-1 [ICSI-P-D21-O-3e-5]

Anil, a registered dealer running its business smoothly but due to pandemic there was no purchase and sale in the month of December 2020, he is willing to file his GST returns by a SMS only. Can he do so? If yes, what are the conditions for doing this?

Answer

Yes, he can file GSTR-1 and GSTR-3B by a single SMS. In terms of Rule 67A of the CGST Rules, 2017, Tax payers can file Nil Return u/s 39 of CGST Act, 2017 in Form GSTR-3B or a Nil details of outward supplies u/s 37 of CGST Act, 2017 in Form GSTR-1, through an SMS, apart from filing it through online mode, on GST portal.

To file Nil returns (GSTR-1 and GSTR-3B) through SMS, the taxpayer must fulfil following conditions:

1. He must be registered as Normal taxpayer/Casual tax payer/ SEZ Unit/ SEZ Developer.

2. He must have a valid Goods and Services Tax Identification Number (GSTIN).

3. Phone number of authorised signatory must be registered on the GST portal.

4. No data should be in saved or submitted stage for Form GSTR-1 on the GST Portal, related to that respective month. Nil return in Form GSTR-3B or NIL details in form GSTR-1 can be filed anytime on or after the 1st of the subsequent month for which the return is to be filed. Taxpayer should  opted for the filing frequency as either monthly or quarterly.

Nil Form GSTR-1 for a tax period must be filed by the taxpayer if:

1. There is no outward supplies (including supplies on which tax is to be charged on reverse charge basis, zero rated supplies and deemed exports) during the month of quarter for which the return is being filed.

2. No amendments are to be made to any of the supplies declared in an earlier return.

3. No credit or Debit notes to be declared / amended.

4. No details of advances received for services to be declared or adjusted.

39.12 Miscellaneous Question

Question-1 [ICSI-P-J18-5(d)-3]

State the Form Number and the due date for its filing under CGST Act, 2017 of the return by :

(i) a composition scheme taxable person

(ii) a registered person deducting tax at source

(iii) an input service distributor.

Question-2 [ICMAI-F-D19-5a-7]

Specify any three types of returns which are at present required to be filed under GST, what the returns are for, their frequency and the due date, (not for composition scheme)

Question-3 [ICAI-I-N19-8c(i)-2]

Explain the consequences, if the taxable person under GST law files the GST return under Section 39(1) of the CGST Act, 2017, but does not make payment of self-assessment tax.

Answer

If the taxable person under GST law files the GST return u/s 39(1) of the CGST Act, 2017, but does not pay the self-assessment tax, the return is not considered as a valid return.

Since the input tax credit can be availed only on the basis of a valid return, the taxable person, in the given case, will not be able to claim any input tax credit. He shall pay interest, penalty, fees or any other amount payable under the CGST Act for filing return without payment of tax.

Question-4 [ICMAI-F-J19-5(a)(i)-6]

What is form GSTR-3B? What are its features? Who is exempt from filing GSTR-3B?