Quarterly Return and Monthly Payment (QRMP) Scheme
A new scheme for the small tax payers was introduced by the Central Board of Indirect Taxes and Customs (CBIC) department by Circular No. 143/13/2020 dated 10th November, 2020. The new scheme was named as QRMP i.e Quarterly Return and Monthly Payments. Let us understand the scheme completely.
Table of Contents
2.Who can opt for the scheme ?
3.What is the effective date of this scheme ?
4.When can a person opt for this scheme?
5.What about monthly sales invoices ?
6.How can the Registered Persons pay tax under QRMP?
7.What is the rate of interest in case of late payment or Not payment / payment of tax ?
8.There is any in case if Excess payment of Tax ?
9.What is the due date for Quarterly Return?
10.There is any late fee for the return and delayed payment of tax?
1.What is QRMP ?
- In this scheme the taxpayers are required to file the returns on quarterly basis instead of monthly basis. But the taxpayers should pay the tax on monthly basis if their ITC from the purchases and the cash balance in Electronic cash ledger are insufficient to meet the output tax liability.
2.Who can opt for the scheme ?
- An Registered Person who is required to file Form GSTR 3B with Aggregate Annual Turnover(AAT) of up to Rs 5 Cr. in the previous financial year is eligible.
- If aggregate annual turnover (AAT) crosses Rs 5 Cr. during a quarter, Registered Person will become in-eligible for the Scheme from next quarter.
- Any person obtaining a new registration or opting out of Composition Scheme can also opt for this Scheme.
- The option to avail this Scheme can be availed GSTIN wise. Therefore, few GSTINs for that PAN can opt for the Scheme and remaining GSTINs can remain out of the Scheme.
3.What is the effective date of this scheme ?
- This scheme has bee applicable from 01.01.2021
4.When can a person opt for this scheme?
- This opting facility can be available throughout the year, Registered Person can opt in any quarter.
- Similarly, the facility for opting out of the Scheme for a quarter will be available from first day of second month of preceding quarter to the last day of the first month of the quarter.
- Option for QRMP Scheme, once exercised, will continue till Registered Person revises the option or his AAT exceeds Rs 5 Cr.
- Registered Persons assigned by GST System can choose to remain out of the scheme by exercising their option from 5thDec., 2020 till 31st Jan., 2021 for the FY 2020-21(Period already completed).
- The for the FY 2021-22 , the registered persons can opt for this scheme From 1st Feb 2021 till 30th April 2021.
5.What about monthly sales invoices ?
- The Registered Persons who are opting for the scheme can upload their sales invoices on monthly basis optionally by 13th of Next month , so that the outward supplies to registered persons is reflected in their GSTR 2A and GSTR 2B.
- This optional monthly invoice uploading facility was named as Invoice Furnishing Facility (IFF).
- Registered Persons need to pay tax due in each of first two months in the quarter, by selecting “Monthly payment for quarterly taxpayer” as reason for generating Challan in FORM GST PMT-06.
- There are two methods for payment of tax under QRMP, the said person can use any of the following two options provided below for monthly payment of tax during the first two months:
- Fixed Sum Method and
- Self Assessment method
a) Fixed Sum Method
- In this method , the facility is being available for the registered persons for payment of tax 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 immediately preceding quarter where the return was furnished monthly.
Example :
b)Self-Assessment Method:
- The said persons, in any case, can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit available, in 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.
- The said registered person is free to avail either of the two tax payment method above in any of the two months of the quarter.
- The due date for the payment of tax by 25th of next month and if the deposited amount is insufficient to set off the quarterly output tax the interest will be levied , which will be discussed in detailed bellow.
- It is clarified that in case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due for the first month of the quarter or where there is nil tax liability, the registered person may not deposit any amount for the said month.
- Similarly, for the second month of the quarter, in case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the cumulative tax due for the first and the second month of the quarter or where there is nil tax liability, the registered person may not deposit any amount.
7.What is the rate of interest in case of late payment or Not payment / less payment of tax ?
The applicability of interest is based on the method of payment of tax.
a) For registered person making payment of tax by opting Fixed Sum Method :
- No interest would be payable in case the tax due is paid in the first two months of the quarter by way of depositing auto-calculated fixed sum amount by the due date.
- In other words, if while furnishing return in FORM GSTR-3B, it is found that in any or both of the first two months of the quarter, the tax liability net of available credit on the supplies made /received was higher than the amount paid in challan, then, no interest would be charged provided they deposit system calculated amount for each of the first two months and discharge their entire liability for the quarter in the FORM GSTR-3Bof the quarter by the due date.
- In case such payment of tax by depositing the system calculated amount in FORM GST PMT-06 is not done by due date, interest would be payable at the applicable rate, from the due date of furnishing FORM GST PMT-06till the date of making such payment.
- Further, in case FORM GSTR-3Bfor the quarter is furnished beyond the due date, interest would be payable as per the provisions of Section 50 of the CGST Act for the tax liability net of ITC.
Example 1 :-
A registered person, who has opted for the Scheme, had paid a total amount of Rs. 100/-in cash as tax liability in the previous quarter of October to December. He opts to pay tax under fixed sum method. He therefore pays Rs. 35/-each on 25th February and 25th March for discharging tax liability for the first two months of quarter viz. January and February. In his return for the quarter, it is found that liability, based on the outward and inward supplies, for January was Rs. 40/-and for February it was Rs. 42/-. No interest would be payable for the lesser amount of tax (i.e. Rs. 5 and Rs. 7 respectively) discharged in these two months provided that he discharges his entire liability for the quarter in the FORM GSTR-3B of the quarter by the due date.
Example 2 :-
A registered person, who has opted for the Scheme, had paid a total amount of Rs. 100/-in cash as tax liability in the previous quarter of October to December. He opts to pay tax under fixed sum method. He therefore pays Rs. 35/-each on25th February and 25th March for discharging tax liability for the first two months of quarter viz. January and February. In his return for the quarter, it is found that total liability for the quarter net of available credit was Rs. 125 but he files the return on 30th April. Interest would be payable at applicable rate on Rs. 55 [Rs. 125 –Rs. 70 (deposit made in cash ledger in M1 and M2)] for the period between due date of quarterly GSTR 3B and 30th April.
b)For registered person making payment of tax by opting Self-Assessment Method :
- Interest amount would be payable as per the provision of Section 50 of the CGST Act 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.
- Interest payable, if any, shall be paid through FORM GSTR-3B.
8.There is any Refund in case if Excess payment of Tax ?
- Any claim of refund in respect of the amount deposited for the first two months of a quarter for payment of tax shall be permitted only after the return in FORM GSTR-3B for the said quarter has been furnished.
- Further, this deposit cannot be used by the taxpayer for any other purpose till the filing of return for the quarter.
9.What is the due date for Quarterly Return?
- Such registered persons would be required to furnish FORM GSTR-3B, for each quarter, on or before 22nd or 24th day of the month(based on the state) succeeding such quarter.
- In FORM GSTR-3B, 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. However, any amount left after filing of that quarter’s FORM GSTR-3B may either be claimed as refund or may be used for any other purpose in subsequent quarters.
- In case of cancellation of registration of such person during any of the first two months of the quarter, he is still required to furnish return in FORM GSTR-3B for the relevant tax period.
10.There is any late fee for the return and delayed payment of tax?
- Late fee is applicable for delay in furnishing of return / details of outward supply as per the provision of Section 47 of the CGST Act.
- As per the Scheme, the requirement to furnish the return under the proviso to sub-section (1) of Section 39 of the CGST Act is quarterly.
- Accordingly, late fee would be the applicable for delay in furnishing of the said quarterly return / details of outward supply.
- It is clarified that no late fee is applicable for delay in payment of tax in first two months of the quarter.
Also Read :
 Scheme ? -GST-2021-Tax Addicters ){kind=link}