08 February 2021
As under QRMPS scheme, monthly payment of tax is also done on the basis of fixed sum method under which 35% of tax paid in cash in preceding quarter is allowed where the return filled quarterly or equal to tax paid in cash in last month of immediately preceding quarter is allowed where is return is filled monthly. but there is some doubt regarding payment which are as follows: 1. Whether the payment can be made in cash only or can be paid using electronic credit ledger? 2. How payment amount of tax is calculated if there is no cash payment of tax in preceding quarter or in last month of immediately preceding quarter? 3. If payment is made only in cash then how the balance of unutilised itc in electronic credit ledger is utilised? 4. if there is sufficient balance in electronic cash ledger, then we required to deposit fresh amount for making 35% payment?
10 July 2024
The queries pertain to the Quarterly Return Monthly Payment of Taxes (QRMPS) scheme under GST. Let's address each query one by one:
1. **Mode of Payment:** - Payment under the QRMPS scheme can be made using both cash and electronic credit ledger (ITC). It is not restricted to cash payments only. You can utilize the balance available in your electronic credit ledger (ITC) to make the payment.
2. **Calculation of Payment Amount:** - If there was no cash payment of tax in the preceding quarter or in the last month of the immediately preceding quarter, the payment amount under the QRMPS scheme is based on the tax liability for the current period. Specifically: - For quarterly filers: The payment would be based on 35% of the tax liability for the current quarter. - For monthly filers: The payment would be based on the tax liability for the current month.
3. **Utilization of Unutilized ITC:** - If payment is made using cash (as per the scheme's requirements), any unutilized Input Tax Credit (ITC) in the electronic credit ledger can still be utilized for other GST liabilities, such as for payment of tax on outward supplies, etc. The balance in the electronic credit ledger is not affected by the cash payment made under the QRMPS scheme.
4. **Use of Electronic Cash Ledger Balance:** - If there is a sufficient balance in the electronic cash ledger (cash balance), you can utilize this balance for making the required 35% payment under the QRMPS scheme. There is no need to deposit fresh amounts separately if your electronic cash ledger already has adequate funds.
### Conclusion:
- **Payment Mode:** Can be made using electronic credit ledger (ITC) or cash. - **Calculation:** Based on current period tax liability if no cash payment was made in the preceding quarter or last month. - **ITC Utilization:** Unutilized ITC can still be used for other GST liabilities. - **Cash Ledger Balance:** Utilize existing balance in electronic cash ledger if sufficient for the 35% payment.
These guidelines should help clarify the process and options available under the QRMPS scheme for payment of GST liabilities. For specific cases or further assistance, consulting with a GST practitioner or tax advisor is recommended to ensure compliance with GST regulations.
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