QRMP Scheme has been implemented to simplify compliance for taxpayers with turnover less than Rs. 5cr. Under this scheme, taxpayers having an aggregate turnover at PAN level up to Rs. 5 crore can opt for quarterly filing of Form GSTR-1 and Form GSTR-3B. Payment can be made in the first two months by a simple challan in FORM GST PMT-06.
What is the QRMP Scheme?
Scheme came into effect from 1st january 2021. Person opts for this scheme will be able to fill the GSTR-1 or GSTR-3B on quarterly basis and no quarterly GSTR-1 with monthly GSTR-3b will be applicable, taxpayer have to be choose to file GSTR-1 and GSTR-3B either on monthly basis or quarterly basis
Any taxpayer whose aggregate turnover is upto rs 5 crore during previous financial and current financial year will be able to opt for QRMP scheme and file the returns on quarterly basis by paying the tax on monthly basis.
- Registered taxpayers (Normal, SEZ developer, SEZ unit)
- A taxpayer under composition scheme
- Persons applying for fresh registration as a normal taxpayer
NOTE- if aggregate annual turnover exceeds Rs. 5 cr. during a quarter that particular taxpayer will become in-eligible for the scheme from the next quarter onwards
The taxpayer is free to choose for the scheme in number of times throughout the year for every quarter a window is going to be provided
What is the default option?
There is a default option which was exercised in respect of the existing taxpayers that from the quarter 2021 all the taxpayers with aggregate turnover upto 5 cr.
Secondly who have filed GSTR-3B return for the month of oct. 2020 by 30th Nov 2020, was migrated on the portal by default in the manner mentioned below-
|Class of registered person||Default Option|
|Registered persons having aggregate turnover of up to Rs.1.5 crore, who have furnished Form GSTR-1 quarterly basis in the current financial year||Quarterly Return|
|Registered persons having aggregate turnover of up to Rs.1.5 crore rupees, who have furnished Form GSTR-1 monthly basis in the current financial year||Monthly Return|
|Registered persons having an aggregate turnover of more than Rs.1.5 crore rupees and up to Rs.5 crore in the preceding financial year||Quarterly return|
- Taxpayers who have not filed GSTR-3B return for oct. 2020 by 30th nov 2020, were not migrated by default
- Now the question is if you have been migrated by default and you want to change it, do you have an option? Yes you had but now you can’t. Government given the time from 5th december 2020 to 31st january 2021 to change it. Now you can change the option for coming quarters.
- The option to avail the QRMP scheme can be availed GSTIN wise. That means on a common PAN if you have multiple GSTIN and you fulfill all the conditions of the QRMP Scheme it is possible for you to keep some GSTINs for that PAN in the QRMP scheme and remaining GSTINs can remain out of the scheme.
- Your last applicable form GSTR 3B should have been filled. Otherwise, this option will not open for you. Also, make sure that no data saved in form GSTR1 for the applicable period.
What is the window to opt for the QRMP scheme
QRMP Scheme can opted for a quarter. From the 1st date of the second month of the previous quarter. To the last day of the first month of the quarter for which you want to avail the scheme.
- latest GSTR-3B return due on the date of exercised option should have been filled,
For Example, You want to opt for qtr. July to Sep and you are trying to exercise this option on the portal on 27th July, then your GSTR 3B which is due for filing on 22nd, 24th of July, should have been filed by that date otherwise the option will not be available for you.
What happens once you have exercised this option?
It will continue to remain the same. You don’t need to choose it again and again. Unless
Either you revise it on your own
Or your Annual Aggregate Turnover exceeds the Rs. 5 crore
Opt in/ opt out of the QRMP scheme as per below timelines:
|Sl. No.||Quarter||QRMP Scheme can be opted in or opted out during|
|1||Q1 (April-June)||1st February to 30th April|
|2||Q2 (July-September)||1st May to 31st July|
|3||Q3 (October-December)||1st August to 31st October|
|4||Q4 (January-March)||1st November to 31st January|
An option can be exercised between these dates.
Can Newly Registered Taxpayers Opt for the QRMP Scheme?
Newly registered taxpayers can opt for the QRMP scheme, on the basis of the registration date.
If registration is granted on any date during the first month of a quarter, then he will be able to opt for the QRMP Scheme from the beginning.
Example: If granted registration on 30th April 2021 he will be able to opt for the QRMP scheme from the quarter Jan-Mar, 2021 itself by 31st January 2021.
If registration is granted on any of the dates during the latter 2 months of a quarter, he will be able to opt for QRMP Scheme only from next quarter onwards.
Example: If granted registration on 1st May 2021 he will be able to opt for QRMP scheme only from the quarter July-Sep, 2021 onwards and (Will have to file GSTR-1 and GSTR-3B return monthly for the months of April and May 2021.
Due dates of filling the form GSTR 3B for Taxpayers Who Have Opted for QRMP Scheme?
This is a default option depending on the principal place of business.
|If the principal place of business is in||Due date for filing form GSTR 3B|
|States of 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|
|States of 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|
How to Opt For QRMP Scheme on GST Portal?
Step 1: Login to GST Portal
Step 2: Navigate to Services >>> Returns >>> Opt-in for Quarterly Return option to opt or opt out from the QRMP Scheme.
Step 3: Select Financial Year >>> Click on Search >> You will be able to see the available quarters you can opt for QRMP scheme
Step 4: Select the option as Quarterly for that quarter >>> Click on Save button >>> Click on OK on confirmation window.
Is it possible to change it?
Yes, you can shift from one scheme to another scheme until the window is open. It depends on you, if you want you can change it from quarterly to monthly at any point in time till the window is open.
Compliances/ Benefits of QRMP Scheme
Required to file form GSTR1 on a quarterly basis.
Even your GSTR-3B will also become a quarterly return, so effectively instead of the 24 returns in a year, you will file only 8 returns, which is a major benefit to the taxpayers in terms of saving time.
For the 1st and 2nd month of the quarter, It also provides an invoice furnishing facility on the portal, where all the B2B invoices for which the recipient can claim ITC (means furnish the details of outward supplies made to registered persons) can be reported by you. Now, these have to be reported in the particular window that-
It has to be reported between 1st and 13th of the following/next month
Invoices upto a value of Rs. 50 lakh/month, that means in a month you will be not able to report invoices exceeds the value of rs. 50 lakh
Invoices for the previous month can be continuously uploaded using IFF from the 1st till 13th of next month will reflect in the form GSTR 2A and form GSTR 2B of the recipients.
The invoice furnished in IFF for the first 2 months is not required to be furnished again in GSTR1.
Methods for Payment of Tax Under QRMP Scheme
Tax due for the first 2 months of the quarter to be deposited in form GST PMT-06, by the 25th of next month. You have to select “Monthly payment for the quarterly taxpayer” as the reason for generating the challan.
Two options provided for a monthly payment of tax for first 2 months –
1. Fixed Sum Method: Portal will generate a pre filled challan in form GST PMT-06 equal to 35% of the tax paid in cash in the preceding quarter (if furnished quarterly) or equal to the tax paid in cash in the last month of the immediately preceding quarter (If furnished monthly)
Can be availed only if a return for a complete tax period preceding such month has been filed.
2. Self Assessment method: These taxpayers 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
These are not fixed options, you can choose any option any time to pay tax. You have a freedom to choose a method of payment from 2 of these.
Benefits of choosing Fixed Sum Method –
- Taxpayer are not required to deposit any amount for the said month, and don’t have to generate PMT-06-
If balance in elect. Cash ledger/ elect. Credit ledger is sufficient for tax due for the first/second month of the quarter, or
If there is nil tax liability.
In GSTR3B return, taxpayers have to debit the amount or can use the amount deposited in the first 2 months for offsetting the liability for that quarter.
No refund or utilization for any other purpose allowed for the amount deposited for the first 2 months of a quarter till filing of GSTR 3B return for the said quarter.
Interest Under QRMP Scheme
|S No||Conditions||Interest to be paid|
|1||For taxpayers paying tax by opting for FSM, if found that tax liability (net of available credit) on the supplies made/ received was more than the amount paid in challan in any or both of the first 2 months of the quarter||Nil|
|2||If payment of tax by depositing system calculated amount in form GST PMT-06 is not done by the due date.||18% of the tax liability(Interest payable from the due date of furnishing form GST PMT-06 till the date of making such payment)|
|3||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||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 the quarterly GSTR-3B due date||Nil|
|5||If GSTR3B returns are not filed by the due date.||18% of the tax liability|
|6||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 the quarterly GSTR-3B due date||18% of the tax liability(from GSTR-3B due date* till the date of payment)|
|7||For taxpayers choosing the self-assessment method not paying tax by the due date||18% on tax remaining unpaid beyond the due date for the first 2 months of Qtr.|
Late Fee Under QRMP Scheme
No late fee is applicable for delay in payment of tax in the first 2 months of the quarter. However, late fee applicable for delay in filing of GSTR 3B return/ details of an outward supply in form GSTR1 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)|
Steps to make Payment of Tax Under QRMP Scheme
Step 1: Log in to the GST portal
Step 2: Navigate to Services >>> Payments >>> Create challan
Step 3: Under ‘Reason for Challan’, select the ‘Monthly payment for quarterly return’ option >>> Select the financial year, period,
Step 4: Select ‘35% challan’ under challan type (To pay tax using the 35% challan method) OR select ‘Challan on self-assessment basis’ option (To pay tax under the self-assessment method) >>> Then click on ‘Proceed’.
Step 5: If the ‘35% challan’ type is selected, click on ‘Generate 35% challan’ on the next page. This will auto-generate the challan based on the previous periods’ GSTR-3B.
If the ‘Challan on self-assessment basis’ is selected, the taxpayer will need to manually compute his tax liability and enter the same in the relevant cells. Once the values are entered, he will need to click on ‘Generate challan’.
Note: A taxpayer is not required to make any tax payment during the first two months of the quarter if the balance in the electronic cash/credit ledger is sufficient for the tax due, or there is a nil tax liability as mentioned earlier.
Step 6: Pay the challan generated as per your preferred mode of payment.
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