With growing compliance of GST among small taxpayers, it has become necessary to introduce some form of relief to help reduce the burden of filing returns. For that purpose, the Central Board of Indirect Taxes and Customs (CBIC) introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) Scheme from January 01, 2021.
Under this QRMP scheme, a taxpayer with a registered annual turnover of up to ₹5 crore can pay their output liability on a monthly basis, whereas the GST returns need to be filed quarterly. This has helped reduce the overall compliance for the taxpayer and provided much-needed relief. With the QRMP Scheme in place, the number of GST returns filed each year have halved to eight returns each year, i.e. four GSTR-1 and four GSTR-3B returns instead of the erstwhile 16 returns.
Further, the QRMP scheme also facilitates Invoice Furnishing Facility (IFF), wherein the taxpayers can upload their sales invoices on the portal despite the GSTR-1 frequency being set to quarterly. IFF can also help eligible buyers claim Input Tax Credit (ITC) on a regular basis.
Let’s look at the features that are made available by CBIC in its latest update for the QRMP taxpayers:
Auto-generation of Form GSTR-2B
- With the auto-generation facility of Form GSTR-2B, details about the purchases for the registered entity are now available with invoice furnishing facility for the first two months of the quarter and using Form GSTR-1 for the third month.
- Form GSTR-2B is divided into two sections for ITC: ITC Available and ITC Not Available. The “ITC Not Available” section is pulled from the IFFs filed by the supplier and its Form GSTR-1. Further, there is also a mention of the liability that the taxpayer is required to pay.
- Quarterly auto-drafted ITC statements are available for view and download by selecting the last month of the quarter from the dropdown.
- Form GSTR-2B is available in quarterly view by default. However, the taxpayer has the option to switch to monthly data view by selecting the appropriate month from the drop-down.
- The last amendment in Form GSTR-2B is the hyperlink for ‘View Advisory’, wherein it displays the conditions or the last date considered as cut-off for preparing the auto-drafted GSTR-2B. Also, this section contains details about supply, which can be for ‘monthly taxpayer’, ‘Taxpayer in QRMP Scheme’, ‘NRTP’, ‘ISD and Import from Overseas/SEZs’, etc.
Auto-populated input credit in Form GSTR-3B
- The new feature regarding the Statement of GSTR-3B is about auto-populated ITC figures. Form GSTR-3B will now provide details about input tax credit that is available as well as ITC that needs to be reversed. All of this information is passed on from the quarterly generated Form GSTR-2B in Table 4 of GSTR-3B.
- A system-generated Form GSTR-3B is now available for download from the dashboard page. This can be accessed by clicking the ‘System-Computed GSTR-3B’ button.
- Once these records are downloaded, they also can be edited based on the records and updated on the portal.
- When such updates are made by the taxpayer and any changes in ITC are noticed by the system, i.e. either the available ITC is increased by more than 5% or ITC reversed is reduced, the GSTN system will show a warning message; however, it won’t stop one from filing the Form GSTR-3B.
These are some amendments introduced by the CBIC in its latest update. While you’re at it, learn how to file GSTR-3B on Finserv MARKETS.
