Quarterly Return Monthly Payment (QRMP) Scheme

Introduction.

The GST council has introduced the QRMP scheme in the 42nd GST Council Meeting dated October 5, 2020. As denoted by its name, QRMP Scheme is a scheme to file the return quarterly but making payment on monthly basis w.e.f. January 1, 2021.

 

Meaning.

The Central Board of Indirect Taxes and Customs (CBIC) introduced QRMP scheme under GST for the taxpayers having aggregate turnover up to Rs. 5 crores in the current and previous FY w.e.f. January 1, 2021. Presently, GSTR-3B return is furnished monthly, but under QRMP scheme, to bring ease for small taxpayers, they will be filing Form GSTR-3B return quarterly and pay tax every month either by self-assessment of monthly liability or 35% of net cash liability of previous filed Form GSTR-3B of the quarter, starting from January-March 2021.

For example, a registered taxpayer having annual aggregate turnover up to Rs. 5 crores in preceding FY and has filed return in Form GSTR-3B for the period June 2021 by the last day of the first month of next quarter, i.e. by July 31, 2021.

It is an optional scheme, so accordingly, the taxpayers can opt-in for the scheme or may even not opt it and continue with their monthly filing of GSTR-3B.

 

Eligibility.

As per Notification No. 84/2020- Central Tax, dated November 10, 2020, a registered person who is required to furnish a return FORM GSTR-3B, and who has an aggregate turnover of up to Rs. 5 crores in the preceding FY, is eligible for the QRMP Scheme.

 

Procedure.

1.      Login at www.gst.gov.in using your username and password.

2.     Click on Services > Returns > Opt-in for Quarterly Return. 

      Taxpayers can avail the scheme GSTIN-wise, i.e. some GSTINs for a PAN can opt-in, and others can opt-out.

 

Migration of Existing Taxpayers.

For the period Jan-Mar 2021, all the registered taxpayers having annual aggregate turnover in the FY 2019-20 up to Rs. 5 crores and has not exceeded Rs. 5 crores turnover in the current FY 2020-21 as well and have furnished the return in Form GSTR-3B for October 2020 by November 30, 2020, will be migrated by default to QRMP scheme by GST software.

The existing taxpayers shall be migrated to the QRMP scheme based on the following annual aggregate turnover criteria.

S. No.	Class of taxpayers	Return Option
1.	Taxpayers having turnover up to Rs. 5 crores in the preceding FY and have furnished GSTR-1 quarterly in the CFY.	Quarterly
2.	Taxpayers having turnover up to Rs. 5 crores in the preceding FY and have furnished GSTR-1 monthly in the CFY.	Monthly
3.	Taxpayers having turnover more than Rs. 1.5 crores and up to Rs. 5 crores in the preceding FY	Quarterly

 

Invoice Furnishing Facility (IFF)

The registered persons opting for this QRMP Scheme would be required to furnish the details of an outward supply in return FORM GSTR-1 quarterly. For first and second month of a quarter, the registered person will have to furnish the details of the outward supplies to registered person, between the 1st day of the succeeding month till the 13th day of succeeding month. The outward supplies shall not exceed the Rs. 50 lacs in each month.

It is pertinent to note that after 13th of the month, this facility for furnishing IFF for a previous month shall not be available.

A feature to continuously upload the invoices would be provided for the registered persons to save the invoices in the IFF from the 1st day of the month till  the 13th day of the succeeding month. The facility to furnish details of invoices in IFF has been provided to allow details of such supplies to be duly-reflected in the GSTR-2A and 2B of the recipient.

The afore-said facility is not mandatory and is an optional facility made available to the registered persons under the QRMP Scheme.

 

Payment of Tax.

The registered persons under this QRMP Scheme  shall be required to pay the tax due in each of first two months of the quarter by depositing the due amount FORM PMT-06 respectively by 25th of the succeeding month.

While generating challan, the taxpayers should select "Monthly payment for quarterly taxpayer" as the reason for generating the challan.

There are two options for the monthly payment of tax during the first two months of a quarter.

1.     Fixed Sum Method:

A new facility has been made available on the GSTN portal for generation of pre-filled challan in FORM PMT-06. The aforesaid challan shall be generated for the following amount:

S. No.	Particulars	Tax required to be paid in the first two months of the quarter
1	Taxpayer had filed GSTR-3B of the previous quarter on a quarterly basis.	35% of the tax paid (CGST / SGST/ UTGST/ IGST/ Cess) in the form of cash
2	Taxpayer had filed GSTR-3B of the previous quarter on monthly basis.	Equal to tax paid in cash in the last month of the immediately preceding quarter

 

2.    Self-Assessment Method:

-       The concerned person can pay the due tax by considering tax liability on inward and outward supplies and ITC available in FORM PMT-06.

-       The taxpayer needs to pay interest @ 18% on the net tax liability which is unpaid or is paid beyond the due date for each of the first two months of the quarter, i.e., in case of FORM GST PMT-06 if filed after 25th of the following month.