Quarterly Return Filing and Monthly Payment of Taxes (QRMP) Scheme under GST
The Central Board of Indirect Taxes & Customs (CBIC) introduced 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.
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.
It is clarified that the aggregate annual turnover for the preceding financial year shall be calculated in the common portal taking into account the details furnished in the returns by the taxpayer for the tax periods in the preceding financial year.
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
A registered person who intends to file his GSTR-3B quarterly should indicate the same on 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 Z 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:
For example: If the person is opting for quarterly GSTR-3B filing on 1st December 2020, he will need to furnish his GSTR-3B return for October 2020, which would have been the last return due on the date of exercising the quarterly filing option.
The taxpayer has to follow the above procedure to opt for the quarterly GSTR-3B. However, the GSTN case of registered persons falling in the categories specified in the table below, who have furnished their GSTR-3B return for October 2020 by 30th November 2020, it shall be deemed that they have opted for monthly or quarterly filing as detailed below-
S No. |
Class of Registered Persons |
Deemed Option |
1 |
Registered individuals with an aggregate turnover of up to Rs.1.5 crore, who have furnished Form GSTR-1 quarterly in the current financial year |
Quarterly GSTR-3B |
2 |
Registered persons with an aggregate turnover of up to Rs.1.5 crore, who have furnished Form GSTR-1 monthly in the current financial year |
Monthly GSTR-3B |
3 |
Registered persons having an aggregate turnover exceeding Rs.1.5 crore and up to Rs.5 crore in the preceding financial year |
Quarterly GSTR-3B |
The taxpayers referred to in the S. No. 2 in the above table can change the default option and opt for quarterly GSTR-3B filing between 5th December 2020 and 31st January 2021.
The taxpayers who opted for the QRMP scheme can use the Invoice Furnishing Facility (IFF) which allows quarterly GSTR-1 filers to upload their invoices every month. One should keep the following points in mind before utilising the IFF:
5. 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 35% of the tax paid in cash.
S No |
Type of Taxpayer |
Tax to be paid |
1 |
Who furnished GSTR-3B quarterly for the last quarter |
35% of tax paid in cash in the preceding quarter |
2 |
Who furnished GSTR-3B monthly during the last quarter |
100% of tax paid in cash in the last month of the immediately preceding quarter |
Example for understanding FSM:
Scenario 1: If GSTR-3B for January 2021 to March 2021 was filed on a quarterly basis
Tax paid in cash during Jan’21 - Mar’21 quarter |
|
Tax required to be paid in each of Apr’21 and May’21 |
||
CGST |
1,00,000 |
|
CGST |
35,000 |
SGST |
1,00,000 |
|
SGST |
35,000 |
IGST |
10,000 |
|
IGST |
3,500 |
Cess |
2,000 |
|
Cess |
700 |
Scenario 2: If GSTR-3 was filed on a monthly basis during the quarter of January 2021 to March 2021
Tax paid in cash during Mar’21 |
|
Tax required to be paid in each of Apr’21 and May’21 |
||
CGST |
30,000 |
|
CGST |
30,000 |
SGST |
30,000 |
|
SGST |
30,000 |
IGST |
15,000 |
|
IGST |
15,000 |
Cess |
2,000 |
|
Cess |
2,000 |
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.
There are certain instances where no amount may be required to be deposited, such as –
It is to be noted that a registered person will not be eligible for the said procedures unless he has furnished the return for the complete tax period preceding such month. A complete tax period is a tax period where the said person is registered from the first until the last day of the tax period.
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 |
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 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 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 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 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).
The late fee should be paid as follows if the quarterly GSTR-3B is not filed within 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.
Whether to opt into QRMP or to continue with monthly returns must be decided for each of the GSTINs of a business (PAN), which can be tedious and time consuming. The segregation of the documents as B2B and non-B2B must also be done where the taxpayer opting into the scheme uses the Invoice Furnishing Facility (IFF). It would help in moving the B2B documents to IFF and rest directly to the quarterly GSTR-1 return. Moreover, the reconciliation between IFF, sales register and GSTR-1 becomes more essential. Further, the taxpayer under QRMP scheme must choose between two methods for tax payment every month, i.e. Fixed Sum Method and Self-assessment Method.1