Overview of QRMP Scheme under GST

As a part of Ease of Doing Business and to provide relief to small taxpayers, CBIC has introduced the Quarterly Return Monthly Payment (QRMP) Scheme w.e.f 01/01/2021 in its GST council meeting. QRMP Scheme is applicable for those registered persons having Aggregate Annual Turnover up to Rs. 5 Cr in the preceding Financial Year. Such registered persons are allowed to furnish return on quarterly basis along with monthly payment of taxes.

Eligibility

A registered person who is required to furnish a return in FORM GSTR 3B, and who has an Aggregate Annual Turnover of up to Rs. 5 Cr in the preceding financial year, is eligible for the QRMP Scheme.

Or

A dealer who is taking New GSTIN or opting out of Composition Scheme.

Notes:

• In case the Aggregate Annual Turnover exceeds Rs. 5 Cr during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.
• Facility to avail the Scheme on the common portal is available throughout the year. Such registered person shall opt for furnishing of return on a monthly basis, electronically, on the common portal, from the succeeding quarter
• Registered persons are not required to exercise the option every quarter. Where such option has been exercised once, they shall continue to furnish the return as per the selected option for future tax periods, unless they revise the said option.

Furnishing of details of Outward Supplies

 The registered person opting for the Scheme are required to furnish the details of outward supply in FORM GSTR-1 quarterly.

OR

For each of the first and second months of a quarter, such registered person has the option of furnishing facility i.e Invoice Furnishing Facility (IFF) to furnish the details of such outward supplies between the 1st day of the succeeding month till the 13th day of the succeeding month. The details of invoices furnished using the IFF in the first two months are not required to be furnished again in FORM GSTR-1.

The facility of IFF has been provided to such supplies be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient. It is re-iterated that the IFF is not mandatory and is only an optional facility made available to the registered persons under the QRMP Scheme

At his option, a registered person may choose to furnish the details of outward supplies made during a quarter in FORM GSTR-1 only, without using the IFF.

Monthly Payment of Taxes

The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by the 25^th day of the month succeeding such month.

The said person can use any of the following two options during the first two months –

Fixed Sum Method:  GST Portal will generate a pre-filled challan in FORM GST PMT-06 for an amount equal to 35% of the tax paid in cash in the preceding quarter where the return was furnished quarterly; or equal to the tax paid in cash in the last month of the immediately preceding quarter where the return was furnished monthly.

Self-Assessment Method: The taxpayer needs to pay the actual tax liability on his outward supplies after deducting the Input Tax Credit and any balance available in Electronic Cash/Credit Ledger vide FORM GST PMT-06. In order to facilitate ascertainment of the ITC available for the month, an auto-drafted input tax credit statement has been made available in FORM GSTR-2B, for every month.

In case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due for the first month and cumulatively for the second month of the quarter or where there is nil tax liability, the registered person may not deposit any amount.

Quarterly filing of FORM GSTR-3B

Such persons are required to furnish FORM GSTR3B, for each quarter, on or before 22nd or 24th day of the month succeeding such quarter.

They shall declare the supplies made during the quarter, ITC availed during the quarter and all other details required to be furnished therein. The amount deposited by the registered person in the first two months shall be debited solely for the purposes of offsetting the liability furnished in that quarter’s FORM GSTR-3B.

Applicability of Interest

For registered person making payment of tax by opting Fixed Sum Method: No interest is payable if the taxpayer has paid the tax due in the first 2 months of the quarter with in due date. If the payment is not done in due date, Interest will be applicable from the due date to the date of making such payment.

For registered person making payment of tax by opting Self-Assessment Method: Interest amount would be payable for tax or any part thereof (net of ITC) which remains unpaid / paid beyond the due date for the first two months of the quarter.

Late Fees

Late fee is applicable for delay in furnishing of return, subject to a maximum penalty of Rs. 5,000 as defined below:

*No late fee is applicable for delay in payment of tax in the first two months of the quarter in Form PMT-06.