Never miss an another update Subscribe Now

Linkedin facebook twitter
Quarterly Return Monthly Payment Scheme under GST

Quarterly Return Monthly Payment Scheme under GST

The GST Council in its meeting held on October 5, had said that registered person having aggregate turnover up to Rs 5 crore may be allowed to furnish return on quarterly basis along with monthly payment of tax, with effect from January 1, 2021.

With the launch of the QRMP scheme on December 5, taxpayers up to Rs 5 crore turnover have the option to file their GSTR-1 and GSTR-3B returns quarterly beginning January-March period. 



Key Highlights of the QRMP Scheme:

  1. Who is Eligible for the QRMP Scheme?

A registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. Further, in case the aggregate turnover exceeds five crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the scheme from the next quarter.

It is clarified that the aggregate annual turnover for the preceding financial year shall be calculated in the common portal taking into account the details furnished in the returns by the taxpayer for the tax periods in the preceding financial year.

The quarterly GSTR-3B filing option will be available from 1st January 2021 onwards. It is clarified that this scheme is optional and can be availed based on GSTIN.

  1. When can you avail QRMP Scheme?

Option to file GSTR 3B on a quarterly basis can be availed any time during the year from the 1st day of the second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised.

Note: Taxpayer must have furnished the last return, as due on the date of exercising such option

Example: For Oct’21 to Dec’21 quarter, taxpayers can avail this scheme from 1st Aug’21 till 31 st Oct. And if he is availing the same on 27th August returns due on 22nd / 24th should be filed

  1. Validity of scheme

The taxpayer continues to fall under the QRMP scheme once she has opted for the same. The scheme will be valid for all future periods unless the taxpayer becomes ineligible or voluntarily opts out of the scheme.

  1. Details of outward supplies

The taxpayers who opt for QRMP have an option to furnish details of outward supplies in the 1st and 2nd month of the Quarter using Invoice Furnishing Facility (IFF). The outward supplies details should be furnished from 1st to 13th day of the succeeding month and this can be done up to the cumulative limit of Rs. 50 Lacs in each of the months. The details furnished through IFF will not be furnished for the GSTR 1 of the Quarter. Details that can be furnished through IFF is B2B Invoices (Inter & / or Intra State) and Debit Notes and Credit Notes

Note: B2C details will have to be furnished with GSTR 1 for all three months while filing GSTR 1 in the 3rd month

Invoice Furnishing Facility: The invoice Furnishing Facility will be a facility provided by the GSTN for taxpayers to submit the details of their outward supplies to the GST system for Month 1 and 2 of the quarter

  1. Deemed monthly/quarterly filing of GSTR-3B

The taxpayer has to follow the above procedure to opt for the quarterly GSTR-3B. However, the GSTN case of registered persons falling in the categories specified in the table below, who have furnished their GSTR-3B return for October 2020 by 30th November 2020, it shall be deemed that they have opted for monthly or quarterly filing as detailed below- 

S No.

Class of Registered Persons

Deemed Option

1

Registered individuals with an aggregate turnover of up to Rs.1.5 crore, who have furnished Form GSTR-1 quarterly in the current financial year

Quarterly GSTR-3B

2

Registered persons with an aggregate turnover of up to Rs.1.5 crore, who have furnished Form GSTR-1 monthly in the current financial year

Monthly GSTR-3B

3

Registered persons having an aggregate turnover exceeding Rs.1.5 crore and up to Rs.5 crore in the preceding financial year 

Quarterly GSTR-3B

 

The taxpayers referred to in the Sl. No. 2 in the above table can change the default option and opt for quarterly GSTR-3B filing between 5th December2020 and 31st January 2021.

  1. Payment Process of QRMP Scheme

The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by depositing the due amount in PMT-06- the payment challan. While generating the payment challan, taxpayers should select “Monthly payment for the quarterly taxpayer” as a reason for generating the challan.

The said person can use any of the following two options provided below for monthly payment of tax during the first two months –

1. Fixed Sum Method:

a. For Return furnished quarterly in the preceding quarter: A facility is made available for generating a pre-filled challan in PMT-06 for an amount equal to 35\%. of the tax paid in cash in the preceding quarter in case the return was furnished quarterly

b. For Return furnished monthly in the preceding quarter: Equal to the tax paid in cash in the last month of the immediately preceding quarter in case the return was furnished monthly.

Note: 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. A complete tax period means a tax period in which the person is registered from the first day of the tax period till the last day of the tax period.

2. Self-Assessment Method: The said persons, in any case, can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit available, in FORM GST PMT-06. In order to facilitate ascertainment of the ITC available for the month, an auto-drafted input tax credit statement has been made available in FORM GSTR-2B, for every month.

Taxpayer is free to avail either of the two tax payment methods above in any of the two months of the quarter.

Considerations before making payment through PMT 06

It is important to note in case the balance in the electronic cash and/or credit ledger is adequate for the tax due for the first month of the quarter or where there is nil tax liability, the registered person may not deposit any amount for the said month.

Similarly, for the second month of the quarter, in case the balance in the electronic cash and/or credit ledger is adequate for the cumulative tax due for the first and the second month of the quarter or where there is nil tax liability, the registered person may not deposit any amount.

Example: In case, filed last return on Quarterly basis

Tax heads

GST paid in Cash in Quarter (April to June, 2021)

Balance in Electronic Cash/Credit Ledger in July and August 2021

GST payable through PMT 06 for each of months in following Quarter – July and August, 2021

CGST

10

3

=(10 X 35\%) – 3 = 0.5

SGST

10

3

=(10 X 35\%) – 3 = 0.5

IGST

10

3

=(10 X 35\%) – 3 = 0.5

Cess

1

0

=(1 X 35\%) – 0 = 3.5


Example: In case, filed last return on Monthly basis

Tax heads

GST paid in Cash in Month June, 2021

Balance in Electronic Cash/Credit Ledger in July 2021

GST payable through PMT 06 for the month of July 2021

CGST

10

3

10 – 3 = 7

SGST

10

3

10 – 3 = 7

IGST

10

3

10 – 3 = 7

Cess

1

0

1

While filing the return for the said quarter in GSTR-3B, and any claim of refund of such amount lying in balance in the electronic cash ledger, if any, out of the amount so deposited shall be permitted only after the return in FORM GSTR-3B for the said quarter has been filed

7. Due dates for filing quarterly GSTR-3B
The due dates filing quarterly GSTR-3B has been notified as follows:

S No

GST Registration in States and Union Territories

Due Date

1

Chhattisgarh, Madhya Pradesh, Gujarat, Dadra and Nagar Haveli, Daman and Diu, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh

22nd of the month succeeding such quarter

2

Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Mizoram, Manipur, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha

24th of the month succeeding such quarter

8. Interest under QRMP scheme
The interest will be applicable as follows if the taxpayer opts for Fixed Sum Method (FSM):
 

S No

Scenario

Interest to be paid

1

Tax liability mentioned in pre-filled form GST PMT-06 is paid by 25th of the following month

Nil

2

Tax liability mentioned in pre-filled form GST PMT-06 is not paid by 25th of the following month

18\% of the tax liability

(from 26th of the following month till the date of payment)

3

The final tax liability for the first two months is less than or equal to the amount paid through pre-filled form GST PMT-06

Nil

4

The final tax liability for the first two months is higher than the tax amount paid through pre-filled form GST PMT-06, and such excess liability has been paid within quarterly GSTR-3B due date

Nil

5

The final tax liability for the first two months is higher than the tax amount paid through pre-filled form GST PMT-06, and such excess liability has not been paid within quarterly GSTR-3B due date

18\% of the tax liability

(from GSTR-3B due date* till the date of payment)

*22nd or 24th of the month succeeding such quarter based on the state of the taxpayer.
The interest will be applicable as follows if the taxpayer opts for Self Assessment Method (SAM):
The taxpayer has to pay interest @ 18\% on the net tax liability which remains unpaid or paid beyond the due date for the first two months of the quarter.
It is important to note that the taxpayer has to pay interest @18\% if there is any late payment of tax in the third month of a quarter. This is applicable irrespective of Fixed Sum Method (FSM) or Self Assessment Method (SAM).

9. Late fee under QRMP scheme
The late fee should be paid as follows if the quarterly GSTR-3B is not filed within due date, subject to a maximum late fees of Rs 5,000:
 

Name of the Act

Late fee for every

day of delay

Late fee for every

day of delay

(in case of ‘Nil’

tax liability)

CGST Act

Rs.25

Rs.10

SGST Act

Rs.25

Rs.10

IGST Act

Rs.50

Rs.20


However, it is clarified that no late fee is applicable for delay in payment of tax in the first two months of the quarter in form GST PMT-06.

Share this:

LEAVE A REPLY:


Thank you for the comment your comment is subjected for approval
ezoto billing software

Get Free Invoicing Software

Invoice ,GST ,Credit ,Inventory

Download Our Mobile Application

OUR CENTRES

WHY CHOOSE LEGALDOCS

Call

Consultation from Industry Experts.

Payment

Value For Money and hassle free service.

Customer

10 Lakh++ Happy Customers.

Tick

Money Back Guarantee.

Location
Email
Call
up

© 2019 - All Rights with legaldocs