indirect taxes

CA INTERMEDIATE - Paper 4B - goods and services tax: a capsule for quick recap
The subject-wise capsules published in the Students’ Journal every month are one among the many initiatives of Board
of Studies which aim at providing quality academic inputs to students of Chartered Accountancy Course. The Capsule is
an educational aid that assists students in quick revision of select topics of a subject. This Capsule covers the topics “GST
in India-an introduction”, “Supply under GST” and “Levy and collection of CGST and IGST” of Paper 4B Indirect Taxes
of Intermediate Course (Old as well as New).
The Capsule is based on the GST law as amended by the significant notifications/ circulars issued till October 31, 2020
and is thus, relevant for students appearing in May, 2021 examination. This Capsule should not be taken as a substitute
for the detailed study of these topics. Students are advised to refer to the October, 2020 Edition of the Study Material for
comprehensive study and revision.

GST IN INDIA-AN INTRODUCTION

TAX Goods and
Services Tax

Major direct and

indirect taxes
Indirect taxes

DIRECT TAX INDIRECT TAX Customs Duty

• The person paying the • The person paying the tax to the
tax to the Government Government collects the same
directly bears the from the ultimate consumer. Direct taxes Income tax
incidence of the tax. Thus, incidence of the tax is
• Progressive in nature shifted to another person.
- High rate of taxes • Regressive in nature - All the Taxes Subsumed in Gst
for people having consumers equally bear the Central Taxes State Taxes
higher ability to pay. burden, irrespective of their
ability to pay.  Central Excise Duty and  State surcharges and
Additional Excise Duties cesses in so far as they
 Service Tax relate to supply of goods
 Excise Duty under and services
Burden of tax Burden of tax Medicinal and Toilet  Entertainment Tax
borne by the shifted to the other Preparation Act (except those levied by
person himself. person.  CVD and Special CVD local bodies)
 Central Sales Tax  Tax on lottery, betting and
 Central surcharges and gambling
Cesses in so far as they  Entry Tax (All Forms) and
relate to supply of goods Purchase Tax
and services  VAT/ Sales tax
 Luxury Tax
 Taxes on advertisements

GST
DIRECT TAX INDIRECT TAX

Multiple State Taxes Single Tax - GST

Central Taxes
Multiple State Tax Single Tax Administration
Tax Administrations
Administrations Uniform law
CEx/ST Act & Rules Multiple Acts and Rules
Computerised uniform
Procedures Multiple Procedures procedures

Pre-GST Indirect Tax structure in India

Entry Tax
and Octroi GST
Customs Excise
Duty Duty Entertainment Tax

Electricity Duty

Central Luxury Tax

Levies SGST/
VAT CGST IGST
UTGST
Central Service State
Sales Tax Tax Levies
GST Structure in India

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 indirect taxes
Genesis Of GST In India

In the year 2000, the then

Prime Minister introduced The Constitution
the concept of GST and set up (122nd Amendment)
a committee to design a GST Bill was introduced in Aug
model for the country. 2006 the Lok Sabha. 2016

2000 Announcement by Union 2014 The Constitution

Finance Minister, during the (101st Amendment)
budget of 2006-07 that GST Act was enacted.
would be introduced from
April 1, 2010.

GST Council recommends

GST Council
re co m m e n d s April CGST, SGST, IGST,
UTGST and Compensation
Sept
all the rules. 2017 Cess Bill. 2016

May CGST, IGST, UTGST March First GST Council

2017 and Compensation
Cess Acts passed.
2017 Meeting

SGST Act passed by

All States except
J & K passed
July 1, J&K; CGST and IGST
Ordinances promulgated
their SGST Act 2017 to extend GST to J&K.
Journey
continues
June 30, GST launched July 8,
2017 2017

Within GST or outside GST? Concept of GST

Manufacturer Distributor Retailer Consumer
Alcohol for human Power to tax remains (R) (R) (R) (R)
consumption. with the State. Cost: 1,00,000 Cost: 1,00,000 Cost: 1,11,200 Cost:
GST @ 18%= Profit: 11,200 Profit: 24,640 1,60,291.2
18,000 Sale Price: Sale Price: (1,35,840 +
1,11,200 1,35,840 24,451.20)
Five petroleum GST Council to GST @ 18% GST@ 18%
products – crude oil, decide the date from 20,016 24,451.20
diesel, petrol, natural which GST will be
Input Tax Input Tax Input Tax Input Tax
gas and ATF. applicable.
Credit= NIL Credit= 18,000 Credit= 20,016 Credit= NIL
Paid to Paid to Paid to Tax Borne by
Government Government Government the Consumer
Entertainment tax Power to tax remains GST = 18,000 GST = 2,016 GST= 4,435.20 18,000 + 2,016
levied by local bodies. with the local bodies. (Output tax – (Output tax – + 4,435.20 =
Input tax) Input tax) 24,451.20

Value Value Value Value

Tobacco Within the purview Addition= Addition= Addition= Addition= NIL
of GST. Power to levy 1,00,000 11,200 24,640
excise duties, also GST @ 18%= GST @ 18%= GST @ 18%=
retained. 18,000 2,016 4,435.20

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indirect taxes
CGST/ SGST/ UTGST/ IGST

CGST
IGST +
SGST
State 1

IG
ST
Foreign Territory

IGS
T CGST
IGST +
CGST SGST
+
UTGST State 2
Union Territory
without legislature

Benefits Of GST

To boost
investments
and
To create a To boost exports.
unified To generate
‘Make in India’
common national more employment
campaign and India
market. by increased
as a ‘Manufacturing
economic
hub. Reduction
Seamless flow activity.
of tax credit from in multiplicity
manufacturer/ supplier of taxes now
to user/ retailer to leviable on goods and
eliminate cascading Benefits services leading to
of taxes. to Economy simplification.

More efficient Common Simpler

neutralisation of procedures for Harmonisation
Advantages Simplified tax regime

GST
taxes to make registration, duty of laws, procedures
our exports more for Trade Tax with fewer
payment, return exemptions. and rates of tax
competitive filing and refund and Industry Structure across the
internationally. of taxes. country.

Benefit of
Common system
exemption/ Tax Compliance of classification of
compounding scheme
Easy goods and services to
for a large segment of
small scale suppliers ensure certainty
to make their products in tax
cheaper. ‘Doing administration.
Greater use Business’
Compliance
of IT will reduce eased as multiple
Automated burden to come
human interface records to be
procedures for down with one
between tax maintained for
processes like pan-India tax
payer and tax various taxes.
registration, returns, replacing multiple
administration.
tax payments, taxes.
refunds and credit
verification.

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 indirect taxes
SUPPLY UNDER GST

Money of goods and

in the course or
furtherance of services
business
Anything
which is
neither Securities
Goods goods nor for consideration
Supply

services Parameters

Not Supply
of supply

Services

Supply should be

CONCEPT OF SUPPLY- SECTION 7 OF THE CGST ACT

Supply includes for in the course

sale, transfer, consideration or furtherance
barter, exchange, of business
licence, rental,
lease and
disposal.

Definition of Goods and Services Definition of Business

Goods Services (a) any trade, commerce, manufacture, profession, vocation,
adventure, wager or any other similar activity, whether or
not it is for a pecuniary benefit;
means means
(b) any activity or transaction in connection with or incidental
or ancillary to (a) above;
Every kind of movable property Anything other than goods (c) any activity or transaction in the nature of (a) above,
whether or not there is volume, frequency, continuity or
regularity of such transaction;
(d) supply or acquisition of goods including capital assets and
services in connection with commencement or closure of
business;
excludes (e) provision by a club, association, society, or any such body
(for a subscription or any other consideration) of the
facilities or benefits to its members, as the case may be;
(f) admission, for a consideration, of persons to any premises;
and

Money and securities (g) services supplied by a person as the holder of an office
which has been accepted by him in the course or
includes includes furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or
a license to book maker or activities of a licensed book
(i) actionable claim Activities relating to: maker in such club
(ii) growing crops, grass (i) Use of money or
and things attached to/ (ii) Conversion of money by (i) any activity or transaction undertaken by the Central
forming part of the land cash/by any other mode, Government, a State Government or any local authority
which are agreed to be from one form/ currency/ in which they are engaged as public authorities
severed before supply denomination, to another,
or under a contract of for which a separate
supply. consideration is charged.

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indirect taxes
Definition of Consideration
Supply for consideration in course or
CONSIDERATION furtherance of business [Section 7(1)(a)]

Importation of services for consideration

includes whether or not in course or furtherance
Payment in money or Monetary value of any act of business [Section 7(1)(b)]
otherwise for the supply or forbearance for the supply

Supply
By recipient or any Supply without consideration [Section
other person 7(1)(c) + Schedule I]
Deposit to be
considered as payment Non-supplies [Section 7(2)
excludes
Excluding subsidy + Schedule III]
given by Central/
ONLY State Governments Activities to be treated as supply of goods or supply of
services [Section 7(1A) + Schedule II]
When the supplier
applies such deposit
as consideration for
the said supply Supply without consideration - Deemed
Supply [Section 7(1)(c) read with
Importation of services for consideration Schedule I]
whether or not in course or furtherance of
business [Section 7(1)(b)] Business Assets
Input Tax Credit
availed

Deemed
Supply
Permanently
transferred/disposed
Consideration
Importation of

Supply Importation of services without consideration

services

Related
persons

Deemed Supply
in course or
furtherance
of business Person out of
supplies Person in India
India
services
Supply between related persons or distinct
persons In course or furtherance of business

Related/Distinct Related/Distinct
Person 1 Person 2
Supply of goods or services Related persons
Deemed Supply

in course or furtherance of business Persons including legal person are deemed as related persons if
Employer Employee Such persons are officers/ directors of one another’s
Gifts ≤ R50,000 business.
in a FY
Such persons are legally recognised partners.
No supply
Such persons are employer and employee.

Supply between principal and agent A third person controls/ owns/ holds (directly/
indirectly) ≥ 25% voting stock/ shares of both of them.
Deemed Supply One of them controls (directly/ indirectly) the other.

A third person controls (directly/ indirectly) both of them.

Principal Agent
supplies goods
Such persons together control (directly/ indirectly) a
supplies goods on behalf of third person.
principal and issues invoice to
customer in his own name
Such persons are members of the same family.

Buyer One of them is the sole agent/ sole distributor/ sole

concessionaire of the other.

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 indirect taxes
Activities or transactions to be treated as Supply of goods or Supply of services [Section
7(1A) read with Schedule II]
S. Activity/ Type Supply
No. Transaction of goods/
services
1. Transfer (i) Title in goods Goods
(ii) Title in goods under an agreement that property shall pass at a future date.
Right/ undivided share in goods without transfer of title in them. Services
2. Land and Lease, tenancy, easement, licence to occupy land. Services
Building Lease/ letting out of building including a commercial/ industrial/ residential complex for business/
commerce, wholly/ partly.
3. Treatment or Applied to another person’s goods Services
Process
4. Transfer of Goods forming part of business assets are transferred/ disposed off by/ under directions of person Goods
Business Assets carrying on business so as no longer to form part of those assets.
Goods held/ used for business are put to private use or are made available to any person for use for any Services
purpose other than business, by/ under directions of person carrying on the business.
Goods forming part of assets of any business carried on by a person who ceases to be a taxable person, Goods
shall be deemed to be supplied by him, in the course or furtherance of his business, immediately before
he ceases to be a taxable person.
Exceptions:
• Business transferred as a going concern.
• Business carried on by a personal representative who is deemed to be a taxable person.
5. Renting of immovable property. Services
Construction of complex, building, civil structure, etc.
Temporary transfer or permitting use or enjoyment of any intellectual property right
Development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of IT software.
Agreeing to obligation to refrain from an act, or to tolerate an act or situation, or to do an act.
Transfer of right to use any goods for any purpose.
6. Following composite supplies:- Services
• Works contract services.
• Supply of goods, being food or any other article for human consumption or any drink.
7. Supply of goods by an unincorporated association or body of persons to a member thereof for cash, deferred payment or Goods
other valuable consideration.

Non-supplies under GST [Section 7(2)(a) Steps to determine whether an activity

read with Schedule III] undertaken is Supply or not
S. Activities or transactions which shall be treated neither Is the activity a supply including supply of goods/ No
No. as a supply of goods nor a supply of services services such as sale, transfer, barter, exchange,
licence, rental, lease or disposal?
Services by an employee to the employer in the course of
1.
or in relation to his employment. Yes
Services by any court or Tribunal established under any
2.
law for the time being in force. Is it for a No Is it an activity specified No
consideration? under Schedule I?
(a) Functions performed by the Members of Parliament,
Members of State Legislature, Members of Panchayats,
Members of Municipalities and Members of other local Yes
Yes
authorities; Is it in course or No
(b) Duties performed by any person who holds any post in furtherance of business?
pursuance of the provisions of the Constitution in that
3.
capacity; or Yes
Is it in Is it
(c) Duties performed by any person as a Chairperson or
course or No import of No
a Member or a Director in a body established by the
furtherance service?
Central Government or a State Government or local
of business?
authority and who is not deemed as an employee before
the commencement of this clause. Yes
Yes
Services of funeral, burial, crematorium or mortuary
4.
including transportation of the deceased. Is it an activity
specified in Activity
Sale of land and, subject to paragraph 5(b) of Schedule II, Schedule III No Activity is is NOT
5.
sale of building. or section 7(2) Supply Supply
Actionable claims, other than lottery, betting and (b)?
6.
gambling.
Yes

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indirect taxes
Composite and mixed supplies

Composite Supply Mixed Supply

• Consist of two or more supplies • Consist of two or more supplies for a

• Naturally bundled single price
• In conjunction with each other • Not naturally bundled
• One of which is principal supply • Though can be supplied independently,
• Tax liability shall be rate of principal still supplied together
supply • Tax liability shall be the rate applicable to
• Example: Charger supplied alongwith the supply that attracts highest rate of tax
mobile phones. • Example: A gift pack comprising of
choclates, candies, sweets and balloons.

LEVY AND COLLECTION OF CGST/IGST

Particulars CGST IGST

Intra-State supplies of goods or services or Inter-State supplies of goods or

Levied on
both services or both

Collected and paid by Taxable person

Supply outside purview

Alcoholic liquor for human consumption
of GST

Value for levy Transaction value under section 15 of the CGST Act

Rates as notified by Government. IGST rate= CGST rate + SGST rate

Rates
Maximum rate of CGST can be 20%. Maximum rate of IGST can be 40%.

 petroleum crude
Supplies on which tax  high speed diesel
would be levied w.e.f. a  motor spirit (commonly known as petrol)
notified date  natural gas and
 aviation turbine fuel

 Supply of goods or services or both, notified by the Government.

Tax payable under
 Supply of specified categories of goods or services or both by an unregistered
reverse charge
supplier to specified class of registered persons.

Tax payable by the The Government may notify specific categories of services the tax on supplies of
electronic commerce which shall be paid by electronic commerce operator (ECO) as if such services are
operator supplied through it.

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 INDIRECT TAXES
CA INTERMEDIATE - PAPER 4B - INDIRECT TAXES
The subject-wise capsules published in the Students’ Journal every month are one among the many initiatives of Board of
Studies which aim at providing quality academic inputs to students of Chartered Accountancy Course. The Capsule is an
educational aid that assists students in quick revision of select topics of a subject. This Capsule covers the topics “E-invoicing”
and “QRMP Scheme” of Paper 4B Indirect Taxes of Intermediate Course (Old as well as New).
The Capsule is based on the GST law as amended by the significant notifications/circulars issued till 30th April, 2021 and is
thus, relevant for students appearing in November, 2021 examination. This Capsule should not be taken as a substitute for
the detailed study of these topics. Students are advised to refer to the October 2020 Edition of Study Material along with
Statutory Update for November 2021 examination for comprehensive study and revision.

E-INVOICING
Class of persons mandatorily required to Invoice Registration Portal [IRP]
issue e-invoice [Notified Taxpayers]

All registered For

businesses uploading/
website reporting of
invoices

with an aggregate
turnover (based Required to issue by notified
on PAN) greater E-invoice persons
than R50 crore

in any preceding
Invoice Reference Number [IRN]
financial year from
2017-18 onwards
Unique
reference
number

generated
and
returned
by IRP on
successful
registration
of e-invoice

Important terms GST

invoice will
E-invoice schema be valid
only with a
valid IRN
Uniform standard format

applicable for all businesses

across the country Form GST INV-1

containing mandatory specified fields to

be reported in electronic format to IRP

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INDIRECT TAXES
Advantages of e-invoicing No requirement of issuing invoice copies in
triplicate/duplicate
Auto-reporting of invoices into GST return

Auto-generation of e-way bill Where e-invoicing

is applicable No need of issuing
invoice copies in
Substantial reduction in transcription errors triplicate/duplicate

Early payment

Exemption from e-invoicing

Cost reduction

Improved efficiency of business Special Economic Zone units

Reduction of tax evasion Insurer/banking company/financial institution

including NBFC
Elimination of fake invoices
GTA supplying services in relation to
transportation of goods by road in a goods
carriage

Situations in which e-invoices are applicable Supplier of passenger transportation service

Supply of goods and/or services to a Person supplying services by way of admission to

registered person by notified person Applicable exhibition of cinematograph films in multiplex screens
[B2B supplies]

Overall work flow of e-invoice

Exports by notified persons Applicable Taxpayers (suppliers) create
GST invoices on their own
Taxpayers upload the
Accounting/Billing/ERP
e-invoice schema to
systems as per
IRP
e-invoice schema
[Form GST INV-01]
B2C supplies by notified persons Not applicable

Invoices issued by Input Service IRP digitally signs

Not applicable the e-invoice and IRP generates IRN
Distributor
add QR code

Supplies made by notified person,

tax on which is payable under Applicable
reverse charge under section 9(3)
Supplier shares the
IRP returns e- invoice
e-invoice with receiver
to supplier
(along with QR code)
Where specified category of supplies
are received by notified person from
unregistered persons [attracting Not applicable
reverse charge under section 9(4)] or
through import of services

Import of goods (Bills of Entry) Not applicable

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 INDIRECT TAXES
Interaction between the business (supplier) and the Invoice Registration Portal (IRP)

A. Seller-IRP Flow of Activities

Seller Invoice Registration Portal (IRP)

B2B APIs /Direct Interaction on IRP

2 3
Note: Uploads the JSON of e-invoice to the IRP JSON pushed to IRP 4
Seller to have • Generates IRN
JSON prep utility • Does de-duplication
from Excel, Word, 1 IRP to have facility to- check with GST system
• Accept JSON through APIs • Signs JSON with digital
ERP Accounting
Prepares e-invoice as per schema • Accept JSON-direct upload signature of IRP
software, mobile
app, etc. having mandatory (GSTIN, Invoice No., • Adds QR code to JSON
Date, Value, etc.) and optional fields
5
Receives the digitally signed Returns digitally signed
JSON of e-invoice that JSON to seller with the 6a
contains the QR code QR code included in it
• Sends authenticated payload
to GST system
• Sends to e-way bill system
Seller’s GSTR -1 gets updated with
liability entered in the invoice

Interaction between the IRP and the GST/E-Way Bill Systems and the buyer

B. IRP-GST System Flow of Activities

Invoice Registration Portal (IRP) GST System Buyer

GST Invoice Registry

B2B APIs/Direct Interaction on IRP

1
2 3
4
JSON pushed to IRP Buyer can use the QR
• Generates IRN
code to verify the invoice
• Does de-duplication check with
GST System
IRP to have facility to- • Signs JSON with digital
• Accept JSON through APIs signature of IRP
• Accept-JSON direct upload 4a
• Adds QR code to JSON
• Invoice information stored in
GST invoice registry Buyer can view the ITC related
• De-duplication checked to the invoice in his GSTR-2A
5
Returns digitally
signed JSON to 6a 6b
seller with the QR code • Sends authenticated • GST System now has a
included in it unique invoice with a unique 6c
payload to GST system
• Sends to e-way bill number E-Way bill system will
system • GSTR-1 of seller updated create the e-way bill
• GSTR-2A of buyer updated

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INDIRECT TAXES
Generation of e-way bill/populating relevant Cancellation of reported invoice
parts of GST return through e-invoicing data
by reporting
IRP sends e-invoice Cancellation allowed by IRN on
data along with IRN of reported seller IRP within
invoice specified time.

GST System E-way bill system

Amendment of reported invoice

Auto-populate Auto-populate data Parameters e.g. Possible only on

data into GSTR-1 into GSTR-2A of ‘Transporter ID’ and GST portal
of supplier respective receiver ‘Vehicle Number’,
etc. reported in Amendment of e-invoice
e-invoice schema already uploaded on IRP
facilitate the
Not possible
generation of
through the IRP
e-way bill

QRMP Scheme

Overview of QRMP Scheme QRMP scheme is GSTIN wise

Optional
return filing Opting of QRMP
Scheme is GSTIN wise Distinct persons can avail
scheme QRMP scheme option for
one or more GSTINs.

Quarterly
Return

Monthly payment of tax

Monthly
payment Tax due in each of the first 2 months
of the quarter

To be paid by depositing in pre filled

• Taxpayers having aggregate turnover of up to Rs. Form GST PMT-06
Eligibility
5 crore in the preceding financial year
Payment to be made by 25th of the
succeeding month
• Taxpayer must have furnished the last return, as
Criteria
due on the date of exercising such option

Options for making monthly payment of tax

• Taxpayers can opt in for any quarter from 1st day
Exercising of 2nd month of preceding quarter to the last day
option of the first month of the quarter for which the Fixed sum
option is being exercised method

Options for making

• Taxpayers are not required to exercise their monthly payment of tax
Validity of option every quarter. Where such option has been
option once exercised once, they shall continue to furnish the Self assessment
exercised return as per the selected option for future tax method
periods, unless they revise the said option.

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 INDIRECT TAXES
Fixed Sum Method Furnishing details of outward supply under
QRMP
35% of the tax
paid in cash in
the return for the Filing of GSTR-1 Quarterly basis
preceding quarter
Pay tax due in where the return
each of the first was furnished
two months of quarterly
the quarter
Optional facility to upload
invoice details using IFF** between 1st day of
Fixed sum upto Rs. 50 lakh in each succeeding month till 13th
method month (for 1st and 2nd day of the succeeding month
Tax liability paid in month of the quarter)
cash in the return
Deposit in for the last month
PMT-06 by of the immediately
25th day of preceding quarter
the month where the return Invoices pertaining to last
succeeding was furnished to be uploaded in GSTR-1 only
month of a quarter
such month monthly

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. Invoice uploaded to be reflected in Form GSTR-
using IFF** 2A and GSTR-2B of recipient

Self Assessment Method

Self assessment Details of invoice furnished not required to be

method using IFF in first 2 months furnished again in GSTR-1

Taxpayers can pay tax by

considering tax liability in Form
GST PMT-06 instead furnish the details of
on inward and outward a registered person may
supplies and ITC available outward supplies made during
choose not to use IFF
a quarter in Form GSTR-1 only

Invoice Furnishing Facility (IFF)

**IFF [Invoice Form GSTR-2A

Furnishing facility]
Form GSTR-2A

For taxpayers filing Invoices to be furnished System generated read only statement
quarterly return from 1st day to 13th day
of the succeeding month
Of inward supplies

For a recipient
for 1st month of for 2nd month up to a cumulative
the quarter of the quarter value of Rs. 50 lakh in
each of the months Updated on a real time basis

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22
INDIRECT TAXES
Form GSTR-2B Due date for filing GSTR-3B return
Form GSTR-2B
Taxpayer
opting for
An auto-drafted read only statement QRMP scheme

Contains the details of ITC

Made available to the registered person (recipient)

Quarterly
for every month GSTR-3B

A static statement and is available only once a

month on or before 22nd on or before 24th
of the month of the month
succeeding the succeeding the
Manner of availment of statement in Form quarter for which quarter for which
GSTR-2B for every month to the registered return is furnished return is furnished
person
Due dates for taxpayers opting for QRMP
Statement in Form Scheme
GSTR-2B

Class of registered persons Due date

for the 1 and 2
st nd
in the 3 month of
rd Registered persons whose principal place of 22nd day of the
month of a quarter the quarter business is in the States of :- month succeeding
Chhattisgarh, Madhya Pradesh, Gujarat, such quarter.
Maharashtra, Karnataka, Goa, Kerala, Tamil
a day after the due date a day after the due date Nadu, Telangana, Andhra Pradesh, Union
of furnishing of details of furnishing of details territories of Daman & Diu & Dadra & Nagar
of outward supplies for of outward supplies for Haveli, Puducherry, Andaman and Nicobar
the said month the said month Islands or Lakshadweep.
Registered persons whose principal place of 24th day of the
business is in the States of :- month succeeding
Himachal Pradesh, Punjab, Uttarakhand, such quarter.
in the IFF by in Form GSTR-1 whichever Haryana, Rajasthan, Uttar Pradesh, Bihar,
a registered by a registered is later
Sikkim, Arunachal Pradesh, Nagaland,
person opting person other than
for QRMP, or opting for QRMP Manipur, Mizoram, Tripura, Meghalaya,
Assam, West Bengal, Jharkhand or Odisha,
the Union territories of Jammu and Kashmir,
Ladakh, Chandigarh or Delhi.
in Form GSTR-1 by
a registered person
opting for QRMP Due date for filing GSTR-3B return

Other
Quarterly filing of form GSTR-3B Taxpayers

Filing of • Quarterly GSTR-3B on or before 22nd or 24th of

GSTR-3B the month succeeding the quarter.
Monthly
GSTR-3B
Offsetting of • Amount deposited in the first 2 months can be
liability debited only for offsetting the liability.

on or before 20th of the

Cancellation • GSTR-3B to be filed even if cancellation of month succeeding the
of registration was done during any of the first two quarter for which return
registration months of the quarter. is furnished

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 INDIRECT TAXES
Benefits of QRMP Scheme Applicability of Interest
For Fixed Sum method taxpayers
Significant reduction of compliance
burden of tax payer
Where auto-
calculated fixed • No interest would be applicable even if
sum amount (as the liability for the said month was found
Only 4 GSTR-3B returns to be filed
Benefits of QRMP Scheme

discussed above) higher

by taxpayer instead of 12 GSTR-3B for first 2 months • If GSTR-3B of the quarter is filed by the
returns in a year of the quarter is due date by discharging the entire liability
paid by due date

Only 4 GSTR-1 returns required

to be filed
Where tax payer
makes monthly
Payment of taxes on monthly basis payment beyond • Interest is payable at the applicable rate
due date

Furnishing of invoice details in IFF

Where Form
GSTR-3B is • Interest payable as per provisions of
furnished beyond section 50 of the CGST Act, 2017 for the
due date tax liability net of ITC
Eligibility of QRMP Scheme

Threshold limit of
aggregate turnover up to Rs. 5 crore For Self-assessment method taxpayers
in the preceding FY

Interest payable as per provisions of section 50 of the CGST Act

Manner of Details furnished in returns for tax periods

computing aggregate for tax or any part thereof (net of ITC) which remains unpaid/
turnover in the preceding FY are taken into account paid beyond the due date

for the first 2 months of the quarter

If aggregate turnover exceeds Rs. 5 crore
Non-eligiblity of during any quarter in the current FY, they
scheme shall not be eligible for scheme from next
quarter

Applicability of late fees

Opting out of the QRMP Scheme
Delay in furnishing of
• Aggregate turnover has exceeded Rs. 5 crore in quarterly return/details of Late fee is applicable
the financial year outward supply
Taxpayers
opting out of
the QRMP
Scheme

• Available from 1st day of 2nd month of

preceding quarter to the last day of the first Delay in payment of tax in
month of the quarter No late fee is applicable
Availability of first two months of quarter
facility of opting
out of QRMP
Scheme for a
quarter

The Chartered Accountant Student August 2021 29

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