New Functionalities made available for Taxpayers on GST Portal in June, 2021

User experience is the key and keeping in this in mind, new features have been added to the GST portal constantly and some of the new Functionalities were made available for Taxpayers on GST Portal in June, 2021. They are

  1. Moving the records saved in IFF, to later months of same Quarter, by taxpayers under QRMP Scheme

There can be cases where the QRMP Taxpayers have entered the data in the IFF but not submitted. In such cases the records which are saved and not submitted/filed can be moved from one period to another period as well as moved from various periods of the Quarter to GSTR – 1 while filing the return.

• Taxpayers can now MOVE the records saved in their IFF of first month of a quarter (if the time for filing it has expired) to IFF of second month of the quarter.
• Taxpayers can also MOVE the records saved in IFF of first month & second month of the quarter (if the time for filing it has expired) to their quarterly Form GSTR-1 (of the same quarter). Please note that the records can be moved only within a quarter.
• While preparing IFF/GSTR-1 (of later months of same quarter) online, in case of saved records, taxpayers will get a pop-up prompting them to either MOVE the records by selecting YES or delete them by selecting NO.

2. Auto population of GSTR-3B liability, for taxpayers under QRMP Scheme, from their IFF and GSTR 1

The tax liability in the case of QRMP taxpayer, it will be auto populated from IFF filed during the months to GSTR – 3B. This will ensure that there are not data entry errors and correct liability gets reported.

3. Filing for refund of accumulated ITC by taxpayers making exempt/ nil-rated supplies, by selecting an option of not having an LUT number in the refund application

Exports are Zero rated supplies under GST and the exporters have an option to invoice with payment of taxes or without payment of taxes. In cases where the invoice is issued without payment of taxes, the taxpayer has to file a refund application separately to claim the accumulated input tax credit in the electronic credit ledger.

To claim refund, in the Form RFD – 01, the taxpayer has to enter the Letter of Under Taking Number currently. From this month onwards the taxpayers now an option to select any one of the following

• I have a valid LUT number.
• I don’t have a valid LUT number, since I am making only exempt/ nil rated supplies

The above mentioned are the new features added for the taxpayers on the GST portal to provide better user experience. Since auto population is machine driven, it is recommended to cross check the values auto populated before filing for the accuracy. In case of any differences, the values can be over written and correct values should be entered.

Check list for filing of Returns by QRMP Taxpayers

In order to address the challenges faced by the small taxpayers who constitute to the majority of the taxpayers, the Government has launched, Quarterly Return Monthly Payment of Taxes Scheme has been launched applicable from 1st of Jan 2021. As per the 37th GST Council Minutes there were about 60 Lakhs taxpayers below ₹ 5 crores, which means about half of the taxpayers can take benefit of the scheme.

  1. QRMP scheme is applicable to which taxpayers?

It is applicable to all taxpayers whose aggregate turnover is less than ₹ 5 crores.

2. What is the difference in the new quarterly returns scheme compared to the old scheme?

The major difference is the old scheme and new scheme are

  1. The taxpayer has to declare monthly B2B supplies details in IFF – Invoice Furnishing Facility
  2. The recipient can claim input tax credit during the month of purchases only once IFF is filed and not wait for the Supplier to file his GSTR – 1 on quarterly basis.

3. At what intervals the taxes have to be paid by QRMP taxpayers?

The tax has be paid on monthly basis.

4. On what basis the QRMP tax payer has to pay taxes?

There are two methods for payment of taxes by the QRMP Tax payers

  1. 35% of the cash paid in previous quarter to be paid in the first two months of the quarter and what ever is the exact liability has to be paid in the third month.
  2. Tax liability for the month can be determined and paid after deducting the input tax credit.

5. How do we make the payment of taxes?

Tax payment will be done through two different documents

  1. For the payment of taxes in the first two month using the Form GST PMT-06
  2. In the third month also Form PMT-06 will be used but through Table 6 of Form GSTR-3B.

6. How do we report the B2B Tax invoices?

B2B tax invoices for the first two months of the Quarter have to be filed using the Invoice Furnishing Functionality and in the third month have to file using the GSTR – 1.

7. What are the steps to be taken for filing of GSTR – 1 and making payment of taxes under QRMP scheme for the last month of the quarter?

a) Verify the sale reported in IFF for the first two months with the sale day book and if any differences are observed, include them in the third months GSTR – 1

b) Verify the inward supplies for first two months claimed with the purchase register, if any differences are observed include them in the GSTR-3B for the third month

c) If any excess cash is paid in the first two months, the same should be adjusted with the third months liability

d) In case of any missing invoices in the first two months which were not reported or under reported, the same should be reported in GSTR – 1 of the third month and interest should be paid @ 18% from the date of tax invoice to the date of filing payment of tax

e) In case if excess input tax credit has been claimed in the first two months, then the same should be reversed in the third month and interest should be paid @24% of the excess ITC taken from the date of claim to the filing date of GSTR – 3B

f) In case of excess cash is paid and balance is there even after filing of GSTR – 3B for the third month, the excess cash balance can be claimed as refund.

As the QRMP Taxpayers are filing it for the first time, it is advised to take proper care should be taken while filing the quarterly returns and paying taxes. In case of any mistakes observed after filing of the third months return the same can be adjusted in the next quarter but the interest outflow will be more and will impact the bottom line of the taxpayers.