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he Central Board of Indirect Taxes & Customs (CBIC) initiated Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under Goods and Services Tax (GST) to assist small taxpayers. The QRMP scheme will facilitate the filing of quarterly returns and GST on the monthly turnover instead of the monthly Goods and Services Tax (GST) returns.
What is the QRMP?
| Eligibility | Conditions |
|---|---|
| A registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to Rs. 5 crores in the preceding financial year. | Return for the preceding month/quarter (October-December) as on the date of exercising option has been filed with in due date |
How to opt-in and opt-out of the QRMP scheme?
The government has decided on default migration for individuals who have filed their GSTR-3B returns for October 2020 till the 30th of November 2020. All individuals who have an aggregate turnover of up to 5 crores and have filed as mentioned will undergo default migration to the common portal.
Opt In
- Taxpayer can opt into the scheme throughout the year.
- Taxpayer can exercise QRMP Option from 1st Day of 2nd month of Preceding Quarter till last date of 1st month of Quarter.
| Sr. No | Period - Quarter | Timeline to opt out |
|---|---|---|
| 1 | April – June | 1st Feb 2021 to 30th April 2021 |
| 2 | July – Sept | 1st May 2021 to 31st July 2021 |
| 3 | Oct – Dec | 1st August 2021 to 31st Oct 2021 |
| 4 | Jan – March | 1st Nov 2021 to 31st Jan 2022 |
What are the new returns and the new due dates?
| Sr. No | Category | Due Date |
|---|---|---|
| 1 | Regular GSTR-1 Category | 13th day of the month succeeding the quarter. |
| 2 | Invoice filing facility (IFF) | 1st to the 13th day in the first and second month |
| 3 | PMT-06 of M1 (Tax Payment) | 25th day following the first month |
| 4 | PMT-06 of M2(Tax Payment) | 25th day following the second month |
| GSTR-3B | 22nd or the 24th day of the month succeeding the quarter. |
What are the Methods of Payment of Taxes?
| Fixed Sum Method | Self-Assessment Method |
|---|---|
| A pre-filled challan facility in PMT-06 either 35% (if quarterly return had been filed in previous quarter) and 100% of previous month (if monthly return has been filed for the previous quarter). | Manual computation of taxes to be paid in cash. |
| Filing of up-to date tax returns is mandatory for using this fixed sum method. | Tax liability = Liability on outward supplies plus RCM on Inward supplies minus Eligible ITC |
| Not available if return for a complete tax period is not filed. | If cash balance is available in Electronic Cash Ledger and utilizable, then only balance deposit would be sufficient. |
What is the Invoice Furnishing Facility?
- The invoice furnishing facility or the IFF is an optional facility under the QRMP scheme, where the registered individuals need to furnish the details of sales made during the month between the 1st day of the succeeding month till the 13th day of the succeeding month.
- The said details of outward supplies shall, however, not exceed the Rs. 50 Lakhs in each month. It may be noted that after 13th of the month, this facility for furnishing IFF for previous month would not be available.
Interest and Late Fee in QRMP Scheme
Interest under QRMP scheme.
| Sr No | Scenario | Interested to be paid |
|---|---|---|
| 1 | 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) |
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.
Late Fee under QRMP Scheme
| 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 |
Conclusion
This scheme is a welcome change that will make it more flexible for small taxpayers to comply. In addition, this can prove to be a blessing not only for small taxpayers, but also for large players who are currently losing credits due to non-reflection of GSTR 2A entries, as many suppliers file GSTR 1 quarterly, potentially contributing to savings in both time and money.
