Quarterly Return Monthly Payment Scheme - QRMP under GST

QUARTERLY RETURN MONTHLY PAYMENT [QRMP] SCHEME UNDER GST - DETAILED ANALYSIS

The Govt. had introduced a new scheme for registered GST small taxpayers i.e. with an annual turnover of less than Rs.5 Crore in the last financial year to file GSTR-3B return every quarter with a monthly payment of tax option w.e.f. 01st Jan. 2021.

The aggregate turnover will be calculated based on the returns filed during the previous financial year on the GST portal.

Planning to OPT for QRMP Scheme under GST - Ask our Experts the advantages and disadvantages

Also if the aggregate turnover exceeds Rs.5 crore in any quarter, the scheme will not be eligible for the taxpayer from the next quarter.

The scheme can be exercised from the 1st day of the second month of the last quarter till the last date of the 1st month of the current quarter. For example, for the Jan. to March 2021 quarter, the scheme can be exercised from 1st Nov.2020 till 31st Jan.2021.

Also, the taxpayer must have filed the last return on the date of exercising such an option. i.e. if a taxpayer exercises this option on 25th Jan.2021, he should have filed the GSTR-3B of Dec.2020 which was due on 24th Jan.2021.

The option once exercised will continue till the taxpayer changes the option. i.e. he will not have to exercise this option every quarter.

This scheme is GSTIN wise and not PAN wise i.e. a registered person having different GSTIN can opt for this scheme for one GSTIN and continue to remain in the monthly scheme for other GSTIN.

The option can be changed by the registered person initially from 5th Dec.2020 to 31st Jan. 2021.

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Furnishing of Details of Outward Supplies [i.e. GSTR-1]

The registered taxpayer who has opted for this scheme will also have to file the GSTR-1 i.e. details of outward supplies every quarter. However, there will be an option for the registered person to furnish the details of outward supplies made to the registered person (known as Invoice Furnishing Facility) between 1 to 13th of next month.

i.e. The invoices for Jan.2021 can be uploaded between 1st to 13th Feb.2021 so that the same can be available in GSTR-2A and GSTR-2B of the registered person.

Monthly Payment of Tax

The registered person under this scheme will have to pay the due tax every month even though GSTR-3B has to be filled in quarterly.

The tax payment has to be made in FORM GST PMT-06 by the 25th of the next month for the first two months. i.e. For Jan.2021, the tax payment has to be made by the 25th of Feb., and for Feb.2021, the tax payment has to be made by the 25th of March.

There are two prescribed methods for paying the tax dues :

1. Fixed Sum Method :

Under this method, the registered person will have to pay tax @ 35% of the total tax paid in cash during the last quarter (if the return was filed quarterly) or equal to the tax paid in cash for the last month (if the return was filed monthly).

2. Self Assessment Method :

Under this method, the taxpayer can self-assess his liability and pay the due tax after considering his output and input supplies for the month. The auto-drafted facility in Form GSTR-2B will be available on the portal.

The GSTR-3B will have to be furnished for the quarter by the 22nd or 24th of the next month after the end of the quarter i.e. for the Jan. to March,2021 quarter, the GSTR-3B has to be furnished by the 22nd or 24th of April. The tax liability ascertained for the quarter has to be paid and the tax already paid for Jan. and Feb. will be adjusted in this return and the balance will either have to be paid or a refund can be claimed for excess paid if any.

Whether Interest will have to be paid for delay in payment of Tax :

1. When a registered person makes a payment of tax under the Fixed sum method :

In this case, no interest will be charged if the balance tax is paid along with the furnishing of Form GSTR-3B for the quarter even if the liability for the first or second month is more than the actual tax paid.

However, if there is a delay in furnishing of return in GSTR-3B for the quarter, then interest will have to be paid from the due date till the date of payment of tax.

2. When a registered person makes payment of tax under the self-assessment method:

In this case, interest will have to be paid if the net liability is more for the particular month in the same way as per provisions of section 50 of the CGST Act.

The late fee will be applicable for delay in filing Form GSTR-3B for the quarter and there will be no late fee for delay in payment of tax.

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