Quarterly Return Monthly Payment (QRMP) under GST- Question and Answer
QRMP : For helping the small business and making GST compliances more easier, new return scheme has been introduced. This new scheme is called as QRMP (Quarterly Return, Monthly Payment). It is quite evident from the name itself, that taxpayer has to file return quarterly and pay taxes monthly. Lets answer many questions on it, like –
- Who can opt for the QRMP scheme ?
- How to opt for the QRMP scheme ?
- When to opt for the scheme ?
- Is scheme applicable GSTIN wise or PAN wise ?
- When and how tax is to be paid ?
- Due dates of the return ?
- What is IFF ?
- Applicability of late fee?
- Applicability of Interest?
- Advantages and disadvantages of QRMP scheme?
- When and how to opt out of the QRMP scheme?
1. Who can opt for the QRMP scheme ?
Every registered person who is required to file return GSTR 3B, having aggregate annual turnover in the preceding the financial year up to Rs. 5 Crore can opt for the scheme.
Hence, following class of persons cannot opt for the scheme :
- Taxpayer registered under composition scheme
- Input Service Distributor
- Non – Resident taxable person
- Department or Establishment of State/ Central Government (Person filling return under section 51(Tax deducted at source))
- If one crosses turnover of Rs. 5 Crore, during the quarter, then he will be ineligible for the scheme.
2. How to opt the QRMP scheme ?
The option to opt for the scheme is enabled now on the GSTN portal. The step by step guide is explained here-
Step1. Log in the GSTN portal.
Step2. From RETURNS tab, select Opt in for Quarterly Return.
Step3. Then select Quarterly and save it.
3. When to opt for the scheme ?
The facility to avail the scheme, would be available on the GSTN portal, throughout the year. A registered person can opt in for any quarter from first day of second month of preceding quarter to the last day of the first month of the quarter. But, while doing so, the registered person must have filed the returns due on the day of exercising the option. That is to say,
|Quarter||Period to exercise the option|
|1. April to June||1st February to 30th April|
|2. July to September||1St May to 31st July|
|3. October to December||1st August to 31st October|
|4. January to March||1St November to 31st January|
Now, let’s understand this with the example :
The facility to exercise the option for January 20 to March 20 Quarter has been enabled on the GSTN portal now.
If one is opting for the scheme on 25th January, then he must have filed the return for December 20, which was due on 22nd or 24th of January 21.
4. Is scheme applicable GSTIN wise or PAN wise ?
It is clarified that for calculating aggregate annual turnover, the turnover of PAN shall be considered. And while opting for the scheme, taxpayer can opt in as per GSTIN wise. Let’s understand with the example
Example, If BabaTax Ltd, is having PAN based turnover of Rs. 4.67 Crore, then it can opt for the scheme. Now, it’s having 3 GSTIN A, B, C, then GSTIN A can opt for the scheme. It is not compulsory that all GSTIN should opt for the scheme.
5. When and how tax is paid ?
Tax shall be paid monthly. There are 2 options given Fixed Sum Method and Self – Assessment Method. Taxpayer has to pay tax using challan in the Form GST PMT -06. This is not yet available on the portal, but soon it will be made available.
Now, let’s understand both the options :
a) Fixed Sum Method–
A registered taxpayer shall pay amount equal to 35% of tax paid in cash in the preceding quarter, if return was filed quarterly or tax paid in cash in last month, if return was filed monthly. Payment will be made via challan in the Form, PMT 06, which will be pre – generated on the portal.
Let’s understand this with the example :
- In case quarterly return was filed for March 2021, quarter :
|Tax paid in Cash in Quarter (January – March, 2021)||Tax required to be paid in each of the months – April and May, 2021|
|CGST -100||CGST -35|
|SGST – 100||SGST -35|
|IGST – 500||IGST -175|
|Cess – 50||Cess -17.5|
Read Also: GST Return Due Date Calendar
- In case monthly return was filed for March 2021 :
|Tax paid in Cash in March, 2021||Tax required to be paid in each of the months – April and May, 2021|
|CGST -30||CGST -30|
|SGST – 30||SGST -30|
|IGST – 100||IGST -100|
|Cess – 10||Cess -10|
b) Self Assessment Method–
Taxpayer has to ascertain the liability considering, the output and input supplies. For, inward supplies, ie, input tax credit, credit available in Form GSTR 2B, shall be considered. Hence, one has to calculate tax liability like earlier and pay tax in the Form PMT 06.
6. Due Date for filling quarterly returns and payment of tax ?
Due date for filling GSTR 3B would be 22nd or 24th day of month succeeding such quarter. The due date for filling GSTR 1 would be 13th day of month succeeding such quarter. Also, the tax shall be paid by 25th day of the succeeding month due in each of the first two months.
7. What is Invoice Furnishing Facility (IFF)?
Form GSTR 2B is generated on the basis of GSTR 1 filed by the suppliers. As GSTR-1 is filed quarterly by few taxpayers (because of turnover limit, or QRMP scheme), timely availing the credit won’t be possible for the taxpayer. To get out of this problem, one more facility called Invoice Furnishing Facility (IFF) is made available for such taxpayers.
Taxpayer can upload invoices up to Rs. 50 Lakhs in each month. Hence, taxpayer can upload B2B invoices using this facility. The facility would be made available from the 1st day of succeeding month till 13th day. After 13th day, this facility wouldn’t be available. These invoices will be reflected in the Form GSTR 2A and GSTR 2B of the corresponding recipient. For instances, for the month of February 2021, the facility would be made available from 1st to 13th March 2021.
This facility is optional. The invoices uploaded in IFF, won’t be needed to upload again while filling GSTR 1 for the quarter. This facility would be available only if taxpayer has opted in QRMP scheme.
Check Also: GST Interest Calculator
8. Applicability of late fee ?
Late fee is payable if details of outward supply or return is furnished late. Hence, late fee will be applicable on late filling of quarterly return. Late fee is not applicable if tax is paid late. However, trade notices may be issued for depositing tax late.
9. Applicability of Interest ?
Interest is payable if tax is paid late. Hence, interest will depend on the option of payment chosen by the taxpayer.
a) If tax is paid as per Fixed Sum Method –
No, interest will be levied if taxpayer has paid as per auto generated challans, for the first 2 months and liability is paid in Form GSTR 3B of the quarter by the due date.
b) If tax is paid as per Self Assessment Method –
If tax is not deposited within due date, interest would be applicable from the due date of filling Form PMT 06, till date of payment.
Calculation of liability
Let’s understand this with the example :
Baba Tax Ltd has opted for the scheme, and is paying tax as per fixed sum method. It has paid tax of Rs.100 in cash for Quarter October to December. Hence, it deposited Rs. 35 for each month of January and February, before due date of 25th February and 25th March respectively. At the time of filling return, it is found that liability for January was Rs. 50 and for February it was Rs. 53. No, interest would be paid for late depositing of tax (Rs. 15 and Rs. 18, respectively) if entire liability is discharged while filling GSTR 3B within the due date.
10. Advantages and disadvantages of the QRMP scheme ?
Like, every coin has 2 sides, this scheme is having pros and cons hands in hands.
The most important feature of the scheme is that, taxpayer has to file the return quarterly, hence less compliance burden for small taxpayers. But, tax has to be deposited monthly, so time would be consumed for calculation of liability. It is just postponement of filling of the return, ie, just formality of OTP or DSC would be postponed.
But, if you are filling GSTR 1 quarterly, and many a times, you get call from customer that invoices are not reflecting in GSTR 2A, of the respective month. Hence, IFF would solve the problem here.
Also, late fees and interest calculation might be saved, if opted in the scheme. But, this should not be the point to consider to choose between the options.
Read Also: GST Notice – Top Reasons, Types & Response
11. When and how to opt out of the QRMP scheme ?
a) Any taxpayer whose aggregate turnover has exceeded 5 crore rupees in the financial year 2020-21, shall opt out of the Scheme. The registered person shall not be eligible for the scheme from the next quarter.
b) The facility to opt out of the scheme will be available from first day of second month of preceding quarter to the last day of the first month of the quarter.
For any questions, you may reach us at Discussion Forum
The author of the above article is CA Ankita Gandhi.
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