Try Zappy Compliance demo

A free demo can be given for Zappy Compliance, a new way of Compliance Calendar that will help you maintain Statutory Registers, Minutes Books and other Repositories online at ease in a safe and secure way. Request one if you would like to try.

In this edition, we will be seeing about Quarterly Return, Monthly Payment of Taxes (QRMP) Scheme at GST. We will have our usual Legal terms and News Bites related to notifications by MCA, SEBI, RBI, IT and GST following the article.

 CS Saranya Deivasigamani,

CEO

QRMP Scheme

Quarterly Return, Monthly Payment of Taxes (QRMP) Scheme is a scheme to simplify compliance for small taxpayers. Under this scheme, taxpayers having an aggregate turnover at PAN level up to Rs. 5 crore can opt for quarterly GSTR-1 and GSTR-3B filing. Payment can be made in the first two months by a simple challan in FORM GST PMT-06. For the ease of taxpayers, system has assigned quarterly frequency to small taxpayers automatically.

Eligibility

For the purpose of determining the eligibility for QRMP, the turnover was determined on the basis of the values declared by taxpayers in Table-3.1 of GSTR-3B (except inward supplies attracting reverse charge) for the Financial Year 2019-20. If a component of the turnover, like exempted or non-GST turnover, was not declared by a taxpayer in GSTR-3B or was declared in next financial year, then the turnover computed by the system for such taxpayers could be less than Rs. 5 crore. Such taxpayers may have been assigned to QRMP on the basis of values declared by them in GSTR-3B. Such taxpayers are advised to opt-out of scheme for quarter Apr-Jun’21 by 30 th April 2021.

For the quarter of April to June 2021, taxpayers may change their filing frequency from quarterly to monthly from 1st February, 2021 to 30 th April, 2021. It may be noted that profile selection is not a recurring requirement every quarter. Once a frequency has been opted for, it is applicable for all future periods unless changed further.

IFF

Invoice Furnishing Facility (IFF) is an optional facility made available as per Rule-59(2) of the CGST Rules, 2017. This is provided for those quarterly taxpayers who want to pass on input tax credit (ITC) to their recipients (buyers/customers) in first two months of a quarter. Since IFF is an optional facility, it poses no additional compliance burden. It is a facility for those quarterly filers who intend to pass ITC to their recipients in first two months of the quarter. Since IFF is an optional facility, IFF for a month will expire after the due date of 13th of next month, and cannot be filed after this date.

Invoice Furnishing Facility (IFF) shall be availed by those taxpayers who want to pass on input tax credit (ITC) to their recipients (buyers/customers) in first two months of a quarter. Those taxpayers who do not have to pass credit to their recipients need not file IFF in the first two months of the quarter. They may declare their outward supplies in the quarterly FORM GSTR-1. It may be noted that since IFF is an optional facility, IFF for a month will expire after the due date of 13th of next month, and cannot be filed after this date.

Payment of Liability

In first two months of the quarter, payment of liability can be made by either of the following two methods:

1. Fixed Sum Method: Portal will generate a pre-filled challan in Form GST PMT-06. The system generated pre-filled challan in this case is commonly also known as 35% challan.
2. Self-Assessment Method: The actual tax due is to be paid through challan, in Form GST PMT-06, by considering the tax liability on inward and outward supplies and the input tax credit available for the period as per law.

The due date for making payment by challan is 25th of the next month.

Fixed Sum Method

In fixed sum method, the taxpayer is required to pay a system generated challan in the first two months of a quarter. The system generated pre-filled challan in this case is commonly also known as 35% challan. If fixed sum method is opted for by the taxpayer & there is no ITC to be passed in that month, then except for paying system generated challan, no other compliance requirement is there in the first two months of the quarter.

Supplies made to unregistered persons (also called B2C supplies) are not required to be declared in IFF. These may be declared in FORM GSTR-1 for the quarter.

Reconciliation of IIF and GSTR-1

Taxpayers will be provided with a draft GSTR-3B, which will contain the details of the liability to be paid by taxpayers in the quarterly GSTR-3B. This will be prepared on the basis of the supplies declared in FORM GSTR-1 for the quarter. It will also contain data from the optional IFF, if any is filed in either of the first two months of the quarter. The said system computed values will also be auto-populated in quarterly GSTR-3B.

Claiming ITC

In first two months of the quarter, no declaration pertaining to ITC is required to be made. The available ITC for the entire quarter will be made available by the system in quarterly FORM GSTR-2B.

This quarterly facility will be in addition to the FORM GSTR-2B being made available on monthly basis, which can still be used for doing self-assessment.

Due Dates

The due dates are critical for claiming ITC or changing the frequency of the return which shall be planned accordingly.

Filing frequency either monthly or quarterly can be selected as per timelines mentioned in below table.

Legal Terms

Cestui Que Trust

n. an old-fashioned expression for the beneficiary of a trust.

MCA Updates

• Commencement notification dated 05 March 2021.
• Companies (Incorporation) Third Amendment Rules, 2021.
• Companies (Management and Administration) Amendment Rules, 2021.
• Companies (Specification and definitions details) 2nd Amendment Rules 2021.
• Companies (Incorporation) 2nd Amendment Rules 2021.
• Companies (Specification of Definition details) Amendment Rules 2021.

SEBI Updates

• Review of norms regarding investment in debt instruments with special features, and the valuation of perpetual bonds.
• Rollout of Legal Entity Template.
• Amendments to provisions in SEBI Circular dated September 16, 2016 on Unique Client Code (UCC) and mandatory requirement of Permanent Account Number (PAN).
• Circular on Guidelines for votes cast by Mutual Funds.
• Circular on Mutual Funds.
• Code of Conduct & Institutional mechanism for prevention of Fraud or Market Abuse.
• Master Circular on Surveillance of Securities Market.
• Extension of facility for conducting meeting(s) of unitholders of REITs and InvITs through Video Conferencing (VC) or through other audio-visual means (OAVM).
• Pre-Expiry Margin on commodities under Alternate Risk Management Framework.

RBI Updates

• Extension of Cheque Truncation System (CTS) across all bank branches in the country.
• Data Format for Furnishing of Credit Information to Credit Information Companies and other Regulatory Measures.
• Investment by Foreign Portfolio Investors (FPI) in Defaulted Bonds – Relaxations.
• Master Direction on Digital Payment Security Controls.

IT Updates

• Amendment of Rule 114E of the Income tax Rules, 1962.
• ​Income-tax (3rd Amendment) Rules, 2021.
• Notification No. 14/2021 [F. No. 187/7/2021 (ITA-I)] / SO 1160(E).
• Income-tax (2nd Amendment) Rules, 2021.
• Notification No. 12 /2021 [F. No. 203/13/2019/ITA-II] / SO 1069(E).
• Income-tax (1st Amendment) Rules, 2021.
• Notification No. 10/2021 [F. No. 370142/35/2020-TPL] / S.O. 966(E).
• ​Amendment of notification no. 85 of 2020 for extension of date in Direct Tax Vivad se Vishwas Act, 2020.
• Notification No. 8/2021 [F.No.300196/35/2019-ITA-I] / SO 813(E).
• Notification No. 7/2021 [F. No. 370149/154/2019-TPL] / SO 742(E).
• ​Faceless Assessment (1st Amendment) Scheme, 2021.

GST Updates

• GSTN Webinar on e-invoicing for taxpayers.
• Module wise new functionalities deployed on the GST Portal for taxpayers.
• Advisory on Annual Return (GSTR-9).
• Advisory on Reconciliation Statement (GSTR-9C ).
• Know more about “QRMP scheme and how to furnish details in IFF” and Answers to Frequently Asked Questions.