10 July 2024
Under the Quarterly Return Monthly Payment (QRMP) scheme in GST, if you are liable to pay reverse charge tax on inward supplies, here’s how you can make the payment:
1. **Determine Liability for RCM:** - Identify the inward supplies on which reverse charge mechanism (RCM) is applicable. This typically includes specific goods or services notified under GST law where the recipient (you, as the buyer) is liable to pay GST instead of the supplier.
2. **Calculate Tax Liability:** - Calculate the GST liability under reverse charge mechanism. This includes both CGST and SGST/UTGST or IGST, depending on whether the transaction is intra-state or inter-state.
3. **Payment Due Dates:** - Under the QRMP scheme, you have flexibility in filing your GST returns quarterly but are required to pay taxes every month. The due dates for payment of taxes under QRMP are generally the 25th of the month following the quarter.
4. **Generating Challan for Payment:** - Log in to the GST portal and go to the **Services > Payments > Create Challan** section. - Enter the amount under the relevant tax heads (CGST, SGST/UTGST, IGST) for the RCM liability. - Select the payment mode (e.g., net banking, over-the-counter payment, NEFT/RTGS).
5. **Payment Process:** - After generating the challan, proceed with the payment through your chosen payment mode. - Once the payment is successful, you will receive a Challan Identification Number (CIN) as proof of payment.
**Record in GST Returns:** - In your quarterly GST returns (GSTR-3B), report the RCM liabilities under the appropriate sections (e.g., 3.1 (b) for RCM outward supplies and 3.1 (d) for RCM inward supplies). - Ensure that the amounts paid under RCM are correctly reflected in your GSTR-3B while filing for the respective quarter.
### Example Scenario:
Let’s say you have a liability of Rs. 10,000 under RCM for the month of April (part of the January-March quarter) for legal services received. Here’s how you would proceed:
- Calculate CGST and SGST/UTGST or IGST at applicable rates on Rs. 10,000. - Generate a GST challan for Rs. 10,000 (comprising CGST and SGST/UTGST or IGST components). - Make the payment through the GST portal using net banking or any other approved payment mode. - Ensure to record this payment in your GSTR-3B for the respective quarter.
By following these steps, you can effectively manage and comply with the payment of reverse charge tax liabilities under the QRMP scheme in GST. If you have specific goods or services for which RCM applies, always refer to the latest GST notifications and seek advice from a GST practitioner if needed.
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