Quarterly Return Filing and Monthly Payment of Taxes (QRMP) Scheme under GST
The Central Board of Indirect Taxes & Customs (CBIC) introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under Goods and Services Tax (GST) to help small taxpayers whose turnover is less than Rs.5 crores. The QRMP scheme allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month.
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. 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.
2. How to exercise Option for QRMP Scheme?
A registered person who intends to file his GSTR-3B quarterly should indicate the same on the GST portal, from the 1st of the second month of the preceding quarter until the last day of the first month of the quarter for which such option is being exercised.
For example: If A wishes to file quarterly returns for the quarter of Jan-Mar 2021, he should opt for quarterly filing on the common GST portal between 1st November 2020 and 31st January 2021.
Once the registered person has opted for quarterly filing, he will have to continue to furnish his return every quarter for all future tax periods, except in the following situations:
- If the taxpayer becomes ineligible for furnishing a quarterly return (for example, if the aggregate turnover crosses Rs.5 crore during a quarter, then from the next quarter he will not be able to file quarterly returns).
- If the taxpayer opts to furnish GSTR-3B on a monthly basis.
- A registered person will not be eligible to opt for furnishing quarterly returns if the last return, which was due on the date of exercising such an option has not been furnished.
3. How to make monthly tax payments under the QRMP scheme?
The taxpayer has to deposit tax using form GST PMT-06 by the 25th of the following month, for the first and second months of the quarter. The taxpayers can pay their monthly tax liability either in the Fixed Sum Method (FSM) or Self-Assessment Method (SAM).
Fixed Sum Method (FSM)
The taxpayer must pay an amount of tax mentioned in a pre-filled challan in the form GST PMT-06 for an amount equal to as shown below:
|
Type of Taxpayer |
Tax to be paid |
|
Who furnished GSTR-3B quarterly for the last quarter |
35% of tax paid in cash in the preceding quarter |
|
Who furnished GSTR-3B monthly during the last quarter |
100% of tax paid in cash in the last month of the immediately preceding quarter |
Self-Assessment Method (SAM)
This is the existing method where a taxpayer can pay the tax liability by considering the tax liability on inward and outward supplies and the input tax credit available. The taxpayer has to manually arrive at the tax liability for the month and has to pay the same in form GST PMT-06. For ascertaining the amount of ITC available for the month the taxpayer can use form GSTR-2B.
4. 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 |
5. Interest under the 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 the 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 the 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 the 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 an 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)
6. Late fee under the QRMP scheme
The late fee should be paid as follows if the quarterly GSTR-3B is not filed within the 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.
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