Notification No.: 85/2020 – Central Tax
Date of Notification: 10th November 2020
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 39(1) (Proviso) – Return filing for quarterly taxpayers
- Section 39(7) (Proviso) – Monthly tax payment method for quarterly filers
- Section 148 – Special procedure for certain classes of registered persons
- CGST Rules, 2017:
- No direct amendment to a rule, but relates to Rule 61A and QRMP framework
Summary of Notification
Special Payment Procedure for Quarterly Return Filers under QRMP Scheme (w.e.f. 1st Jan 2021):
The Central Government notifies a special payment procedure for quarterly return filers (opted under proviso to Section 39(1)), allowing them to pay monthly tax in the first and/or second month of the quarter without filing monthly returns.
Under the scheme, such taxpayers may pay tax via cash ledger deposit using either:
- 35% of tax liability paid in cash for the preceding quarter, if returns were filed quarterly; OR
- 100% of tax liability paid in cash for the last month of preceding quarter, if returns were filed monthly.
Exemption from Monthly Payment Deposit in Certain Cases:
- First Month: No deposit is required if tax liability is nil or sufficient balance exists in the cash or credit ledger.
- Second Month: No deposit is required if cumulative balance suffices for both first and second months, or if nil liability.
Eligibility Restriction for Special Procedure:
- Taxpayer must have filed return for a complete tax period preceding the relevant month.
- “Complete tax period” means the person was registered from first to last day of that tax period.
Effective Date:
This special payment scheme shall come into force from 1st January 2021.
