Don's Miss Any GST Update
Get all updates on email

qrmp scheme under GST

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 article

Who All Can opt for QRPM Scheme under GST?

The following taxpayers can opt for QRPM Scheme:

  • RP who is required to file Form GSTR 3B with annual aggregated turnover of up to INR5 Cr. in the previous FY
  • If annual aggregated turnover crosses INR 5 Crores during a quarter, RP will become ineligible for the Scheme
  • Any person obtaining a new GST registration or opting out of the Composition Scheme
  • Any person obtaining a new registration or opting out of the Composition Scheme under GST
  • The option to avail of this scheme can be availed GSTIN wise.

Watch Video on Due dates & Late Fees under QRMP Scheme

What is the right time to opt for QRPM Scheme?

  • The facility can be availed throughout the year, in any quarter
  • Option for Quarterly Return Monthly Payment Scheme, once exercised, will continue till RP revises the option or his annual aggregated turnover exceeds INR 5 Cr
  • RPs migrated by default can choose to remain out of the scheme by exercising their option from 5th, 2020 till 31st January 2021

How does the payment of GST work under QRPM Scheme?

  • RPs need to pay the tax due in each of the first two months (by 25th of next month) in the quarter
  • RPs can either use the Fixed Sum Method (pre-filled challan) or Self-Assessment Method (actual tax due), for the monthly payment of tax for the first two months, after adjusting ITC.
  • No deposit is required for the month if there is a nil tax liability.
due date under QRMP 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

Interest under QRMP scheme:

In the case of Fixed Sum Method (FSM) the interest will be applicable as follows:

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 fees under QRMP scheme

Late fee under QRMP scheme

The late fee will be charged 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.

What are the business benefits of QRPM Scheme?

  • Taxpayer's compliance burden will be reduced significantly.
  • Taxpayers need to file only 4 GSTR-3B returns instead of 12 GSTR-3B returns in a year.
  • Taxpayers would be required to file only 4 GSTR-1 returns since Invoice Filing Facility (IFF) is provided under this scheme
  • Pay tax on a monthly basis, either by fixed sum method (or) self-assessment method by generating pre-filled challan selecting “monthly payment for quarterly taxpayers”.
  • Furnish invoice details in IFF depending upon the requirement of their recipient, for the first two months of the quarter. The remaining invoice details can be furnished in the quarterly GSTR-1.

Who can file quarterly return under GST?

QRMP scheme 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?

QRMP scheme

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?

GST payment

Taxpayers will have to pay the taxes on a monthly basis, they can only file their returns on a quarterly basis.

  • Taxpayers need to pay the tax due in each of the first two months by 25th of following month of the Quarter by depositing the due amount in FORM GST PMT-06, by selecting “Monthly payment for the quarterly taxpayer” as a reason for generating this Challan
  • Taxpayers can either use the Fixed Sum Method (pre-filled challan) or the Self-Assessment Method (actual tax due), for a monthly payment of tax for the first two months, after adjusting the ITC.
  • No deposit is required for the month if the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due for the 1st and 2nd month both or where there is no tax liability on them.

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

  • A pre-filled challan facility in PMT-06 containing either 35%, if the quarterly return has been filed in previous quarter and 100% of previous month (in case the monthly return has been filed for the previous quarter).
  • Filing of up-to date tax returns is mandatory for using the fixed sum method.
  • You cannot avail this method if the return for a complete tax period is not filed.

Self-Assessment Method

  • This method contains Manual computation of taxes to be paid in cash by the taxpayers
  • Tax liability: Liability on outward supplies plus RCM on Inward supplies minus Eligible ITC.
  • If cash balance is available in Electronic Cash Ledger and utilizable, then the balance deposit would be sufficient to release the tax liability.

About the author

Follow me:

You may also like

GST News: 5 States May Take Legal Action Against Union Government on Not Receiving GST Compensation

Video: GST Return Filing | GSTR-1 Return Filing Using Tally Connector TDL

20% ITC (Input Tax Credit Rule) that Every Business Owner Should Know

Leave a Reply

Your email address will not be published. Required fields are marked

  1. good video, but in example you shown qtr jan 21 to march 21 , for that preceding qtr is oct 20 to dec 20 , please show how to calculate 35% of tax. as you select qtr april 21 to jun 21,
    If qtr is jan 21 to march 21 , what is the tax amount (35%) ,

    1. Hello Bhavisha,

      First of all, Thank you for reading our blog and watching the video.

      We will work on your query and very soon will record the video for the same.

      Please stay tuned with us for more GST Articles and Videos.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}