Transition from QRMP to Monthly Filing: Mandatory Backend Migration for Turnover-Based Opt-Out

Facts

The Status: The Petitioner, a registered person under CGST, was originally eligible for and opted into the Quarterly Return Monthly Payment (QRMP) scheme as their turnover was below ₹5 crores.
The Change: In December 2025, the Petitioner’s aggregate turnover crossed the ₹5 crore threshold. Under the law, this necessitated an opt-out from the QRMP scheme to the regular monthly filing mode (GSTR-1 and GSTR-3B) starting from the January–March 2026 quarter.
The Technical Failure: The Petitioner attempted to opt out via the GST common portal, but the system did not accept the request. Despite multiple representations to the GST Grievance Redressal Forum, the request remained pending.
Department’s Stand: The Revenue argued that as per Circular instructions, the opt-out must be exercised by January 31, 2026. They suggested that backend migration was possible only if the Petitioner filed returns with late fees and interest, followed by a refund claim for those charges.

Decision

Final Verdict: In favour of the Assessee.
Ratio Decidendi:
- Substance Over Technicality: The Court held that when a taxpayer becomes ineligible for a scheme due to statutory turnover limits, the technical glitches of the portal should not prevent them from complying with the law (i.e., filing monthly returns).
- Mandatory Migration: Given that the Petitioner proactively tried to opt out and approached the Grievance Redressal Forum, the GSTN and authorities were directed to effect necessary backend changes to migrate the account to monthly filing.
- Equitable Relief: The Court allowed the migration effective from March 2026. While the Petitioner was directed to pay applicable interest and late fees to enable the filing, the Court granted explicit liberty to apply for a refund of these amounts, to be considered on merits.

Key Takeaways

Proactive Grievance Filing: This ruling emphasizes the importance of documenting portal errors. If the GST portal does not allow a change in return filing frequency (QRMP to Monthly), immediately file a ticket with the GST Grievance Redressal Portal. This “paper trail” is essential for obtaining relief from High Courts.
Turnover Monitoring: For clients near the ₹5 crore threshold, turnover must be monitored monthly. Once exceeded, the transition to monthly filing is a statutory requirement, and portal limitations cannot be used by the Department to force a taxpayer into incorrect quarterly filing.
Backend Correction: High Courts are increasingly directing “backend migrations” where the GSTN’s automated logic fails to accommodate statutory changes. If a client is “stuck” in QRMP, a writ petition is a viable path to force a system update.
Refund of Late Fees: While the system may require the payment of late fees to “unlock” the return filing, this case law provides a precedent to claim a refund of those fees if the delay was caused by portal non-responsiveness rather than taxpayer negligence.

HIGH COURT OF CALCUTTA

Celebration Blenders & Distilleres (P.) Ltd.

Assistant Commissioner of CGST & CX^*

Kausik Chanda, J.

WPA No. 6667 of 2026

APRIL 10, 2026

Mainak Bose, Sr. Adv., Akshat Agarwal and Ms. Doyel Dey, Advs. for the Petitioner. Vipul Kundalia, Sr. Adv., Tapan Bhanja and Anindya Kanan, Advs. for the Respondent.

ORDER

1. The petitioner seeks directions against the respondent authorities under the Central Goods and Services Tax Act, 2017, to undertake backend technical corrections on the GST Common Portal, thereby enabling the petitioner to opt out of the Quarterly Return Monthly Payment (QRMP) Scheme and to file returns in Forms GSTR-1 and GSTR-3B on a monthly basis from January 2026.

2. It appears that the petitioner, being a registered person with an aggregate turnover of less than ?5 crores, had, pursuant to the Notification dated 10 November 2020 issued by the Central Board of Indirect Taxes and Customs (CBIC), opted to furnish returns on a quarterly basis along with monthly payment of tax.

3. Mr. Mainak Bose, learned senior advocate appearing for the petitioner, submits that the scheme mandates that a registered person must opt out of the said scheme upon its aggregate turnover exceeding ?5 crores. The procedure for opting out is also prescribed in the Circular issued by the CBIC dated 10 November 2020.

4. He further submits that the petitioner crossed the prescribed threshold limit in December 2025 and, in terms of the said Circular, was required to opt out with effect from the quarter commencing January 2026.

5. It is further submitted that the petitioner attempted to opt out through the GST Common Portal; however, the portal did not accept the application and failed to process the petitioner’s request. Subsequent representations made before the GST Grievance Redressal Forum remained unaddressed. A further request dated 4 March 2026 for change of return filing mode also remained pending with the GST authorities.

6. Mr. Vipul Kundalia, learned senior advocate appearing for the GST authorities, refers to paragraph 4.4 of the Circular dated 10 November 2020 and submits that the application to opt out was required to be made on or before 31 January 2026, whereas the petitioner’s application was filed beyond the prescribed period.

7. He further submits, on the basis of instructions dated 6 April 2026 received from Respondent No. 3 (GSTN authorities), that the petitioner may be migrated from the QRMP Scheme to monthly filing by effecting the necessary backend changes on the Common Portal. However, with regard to the payment of interest and late fees for delayed filing, the authorities maintain that the petitioner must first file the returns along with applicable late fees and interest, and thereafter seek a refund from the concerned Commissionerate, which shall be processed in accordance with law upon submission of an appropriate application.

8. This Court is of the view that, in the facts and circumstances of the case, the petitioner ought to be permitted to opt out of the QRMP Scheme and to file regular monthly returns in Forms GSTR-1 and GSTR-3B.

9. In view of the above, the GSTN and the GST authorities are directed to carry out the necessary backend changes on the GST Common Portal to enable the petitioner to opt out of the QRMP Scheme and to migrate the petitioner to monthly filing of Forms GSTR-1 and GSTR-3B with effect from March 2026. The petitioner shall file the requisite returns along with applicable late fees and interest. The GSTN and the GST authorities shall complete the aforesaid exercise within a period of fourteen (14) days from the date of this order.

10. The petitioner shall be at liberty to make an application for refund of such amount, which shall be considered by the concerned Commissionerate in accordance with law.

11. Accordingly, WPA 6667 of 2026 stands disposed of.

12. Urgent photostat certified copy of this order, if applied for, be supplied to the learned advocates for the parties on usual undertakings.