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By CA. Manish Agarwal | 13 November, 2020
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GST Quarterly Return Monthly Payment Scheme (QRMP Scheme)
Eligibility
Scheme is applicable from 01-01-2021 for the registered persons having aggregate turnover of upto Rs. 5 crores in the preceding year.
Turnover would be considered basis details furnished in the returns filed by the taxpayer.
The scheme is optional. One can opt for the scheme for any quarter during the last 2 months of the preceding quarter and first month of the relevant quarter. (for E.g. For July to September Quarter, option can be exercised from 1st of May till 31st July). However, the last return due on the date of exercising the option should have been filed.
The selected option would be applicable for the future tax periods, unless it is opted out.
For the first quarter (Jan-March 2021), the eligible taxpayers would be auto migrated to the new scheme, if the taxpayer:-
had aggregate turnover upto INR 5 crores for FY 19/20;
has not opted for quarterly filing of GSTR-1; and
has furnished GSTR-3B of October-2020 by 30th November.
Option can be changed by such taxpayers between 5th December to 31st January.
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About CA. Manish Agarwal
He is a Chartered Accountant and a Registered Valuer. He can be reached at mra@manishragarwal.in
If turnover for the current year exceeds 5 crores during any of the quarter, monthly filing is applicable from succeeding quarter.
Option to avail the scheme is GSTIN wise. Therefore, different GSTINs on same PAN have the option to avail the Scheme for one or more GSTINs.
Payment of tax
Payment of tax is to be made on monthly basis by 25th of succeeding month. For the first 2 months of the quarter, payment can be made by following any of the below 2 options:
Fixed Sum Method:
35% of payment made in cash in the preceding quarter can be paid- if the last return was on quarterly basis
100% of payment made in cash in the preceding month can be made- if the last return was on monthly basis.
The last return should have been filed for a complete tax period.
No interest is payable if the actual liability for the first 2 months as per GSTR-3B is higher, if the payment is made under this method by due date.
No late fees for delay in payment for first 2 months of the quarter.
Self-Assessment Method:
Tax is paid by considering the outward and inward supplies for the month and the available input tax credit.
In case of short payment for the first 2 months, Interest would be payable from the due date of payment.
No late fees for delay in payment for first 2 months of the quarter.
Filing of Form GSTR-3B
Taxpayers opting for the Scheme are required to file GSTR-3B on quarterly basis by 22nd/ 24th day of the month succeeding the quarter.
Payments made during the first 2 months of the quarter would be adjusted first against the liability furnished in the GSTR-3B of the quarter.
Any amount left after filing of return for the quarter can be claimed as refund or used for any other purpose in subsequent quarters.
Details of outward supplies (GSTR-1)
Details of outward supplies in GSTR-1 would be furnished on quarterly basis by a taxpayer opting for the scheme.
However, B2B invoices (for supplies upto INR 50 lakhs) can be furnished on monthly basis from 1st day of the succeeding month till 13th of the succeeding month. (Even the invoices can be uploaded and saved on GST portal on continuous basis from 1st of the month till 13th day of succeeding month).
The above facility is optional for the taxpayer.
Refer: CBEC circular (No. 143/13/2020- GST)
(Information in this article is intended to provide only general information of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions.)
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