What is QRMP Scheme under GST?
QRMP or Quarterly Return Monthly Payment Scheme is a new scheme that CBIC has rolled out for small scale businesses.
CBIC rolled out Circular No. 20/01/08/2020- GST on November 10th, 2020, introducing the QRPM Scheme that will be effective from January 1st, 2020.
In this article, we have explained all the authentic details of the Quarterly Filing Monthly Payment scheme.
So, QRPM is the scheme for small businesses that have an annual aggregated turnover of up to INR 5 Crores, which enables them to GST Return Filing on a quarterly basis, however, the tax payment will still remain to be a monthly activity.
Watch video on QRMP Scheme benefits & eligibility
The Government has already given the specifications about the eligibility, time, & working of this QRMP scheme.
The same is discussed in detail in this articleWho All Can opt for QRPM Scheme under GST?
The following taxpayers can opt for QRPM Scheme:
Watch Video on Due dates & Late Fees under QRMP Scheme
What is the right time to opt for QRPM Scheme?
How does the payment of GST work under QRPM Scheme?
Due dates for filing quarterly GSTR-3B
The due dates for filing quarterly GSTR-3B has been notified by CBIC, as follows:
Sr. 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 |
Interest under QRMP scheme:
Sr. No. | Scenario | Interest to be paid |
|---|---|---|
1 | When tax liability mentioned in pre-filled form GST PMT-06 is paid by 25th of the following month | Nil |
2 | When 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 | If 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 | If 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 | In case 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 preceding such quarter based on the state of the taxpayer.
If the taxpayer opts for Self-Assessment Method (SAM), the interest will be applicable as follows-
The taxpayer has to pay interest @ 18% on the net tax liability which remains unpaid or is 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 stays applicable irrespective of Fixed Sum Method (FSM) or Self-Assessment Method (SAM).
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 |
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.
What are the business benefits of QRPM Scheme?
Who can file quarterly return under GST?
Any registered person who is liable to filing GSTR-3B monthly returns and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year can opt for the QRMP Scheme under GST
However, in case the aggregate turnover exceeds INR 5 Crores during any quarter in the current financial year, the registered person shall not be eligible for the scheme from the next quarter.
Note- Any person obtaining a new registration or opting out of the Composition Scheme can also opt for the QRMP Scheme.
QRMP scheme mandatory or optional?
The QRMP Scheme is an optional scheme to make the GST compliance easier for the taxpayers.
All taxpayers having an annual turnover of up to INR 5 Crores can opt for this scheme on a GSTIN basis.
This way the small taxpayers will only have to furnish a total of 8 returns in a financial year- 4 GSTR-1s and 4 GSTR-3Bs.
Is GST payment monthly or quarterly?
Taxpayers will have to pay the taxes on a monthly basis, they can only file their returns on a quarterly basis.
Note- Tax deposited for the first 2 months can only be used for adjusting the liability for the respective quarter in Form GSTR-3B and can’t be used for any other purpose till the filing of return for the quarter is done.
A refund for the balance accumulated can only be claimed after filing of GSTR 3B of the respective quarter.
Here is how the two monthly payment methods work
Fixed Sum Method
Self-Assessment Method