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QRMP (Quarterly Return Monthly Payment) Scheme

=> 31st Jan 2021 is the last date for opting / changing the option for QRMP Scheme for quarter Jan-Mar 2021.

=> 01st Feb 2021 is the start date date for opting / changing the option for QRMP Scheme for quarter Apr-June 2021.

Relevant Notifications / Circulars Circular No.143/2020 - 10th Nov 2020 Notification No. 81/2020 - 10th Nov 2020 Notification No. 82/2020 - 10th Nov 2020 Notification No. 84/2020 - 10th Nov 2020 Notification No. 85/2020 - 10th Nov 2020

Who is eligible for QRMP Scheme?

As a trade facilitation measure and ease of doing business, CBIC had introduced QRMP (Quarterly Return Monthly Payment) Scheme for taxpayers having turnover up to Rs. 5 Crores in the preceding Financial Year.

What is the timeline to avail QRMP Scheme for any quarter?

Facility to avail the Scheme on the portal would be available throughout the year. In terms of rule 61A of the CGST Rules, a registered person can opt in for any quarter from first day of second month of preceding quarter to the last day of the first month of the quarter.

In order to exercise this option, the registered person must have furnished the last return, as due on the date of exercising such option.

If he is exercising his option on 27th July for the quarter (July to September), in such case, he must have furnished the return for the month of June.

What if turnover exceeds Rs. 5 Crores in the current year after opting for QRMP Scheme?

In case aggregate turnover exceeds Rs. 5 Crores during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.

Turnover for the purpose of QRMP Scheme is to be calculated GSTIN wise or PAN wise?

It is clarified that the option to avail the QRMP Scheme is GSTIN wise and therefore different GSTINs on same PAN have the option to avail the QRMP Scheme for one or more GSTINs. In other words, some GSTINs for that PAN can opt for the QRMP Scheme and remaining GSTINs may not opt for the Scheme.

Form which quarter, QRMP scheme will be effective?

This new Scheme will be effective from 01^st Jan 2021.

Do taxpayers need to exercise this option every quarter?

Registered persons are not required to exercise the option every quarter. Where such option has been exercised once, they shall continue to furnish the return as per the selected option for future tax periods, unless they revise the said option.

How default migration will be done on the portal?

For the first quarter of the Scheme i.e. for the quarter Jan - Mar 2021, for all the registered persons whose turnover for the FY 2019-20 is up to Rs. 5 Crores and who have furnished FORM GSTR-3B for the month of Oct 2020 by 30th November 2020, default migration on the portal shall be done as below.

Taxpayers who have not filed their return for October, 2020 on or before 30th November, 2020 will not be migrated to the Scheme. Therefore, taxpayers are advised to furnish the return of October, 2020 in time so as to be eligible for default migration. They will be able to opt for the Scheme once the FORM GSTR-3B as due on the date of exercising option has been filed.

Sl. No.	Class of registered person	Default Option
1	Registered persons having aggregate turnover of up to 1.5 crore rupees who have furnished FORM GSTR-1 on quarterly basis in the current financial year	Quarterly return
2	Registered persons having aggregate turnover of up to 1.5 crore rupees who have furnished FORM GSTR-1 on monthly basis in the current financial year	Monthly Return
3	Registered persons having aggregate turnover more than 1.5 crore rupees and up to 5 crore rupees in the preceding financial yea	Quarterly return

 

Can I change the default migration option?

Taxpayers shall be free to change the default option as above, if they so desire, from 5th of December, 2020 to 31st of January, 2021.

Similarly, the facility for opting out of the Scheme for a quarter will be available from first day of second month of preceding quarter to the last day of the first month of the quarter.

Filing of GSTR-1 under QRMP Scheme?

The registered persons opting for the Scheme would be required to furnish the details of outward supply in FORM GSTR-1 on quarter basis as per the rule 59 of the CGST Rule.

What is IFF (Invoice Furnishing Facility)?

For each of the first and second months of a quarter, such a registered person will have the facility (Invoice Furnishing Facility- IFF) to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month. It may be noted that after 13th of the month, this facility for furnishing IFF for previous month would not be available.

The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.

For example, a registered person who has availed the Scheme wants to declare two invoices out of the total ten invoices issued in the first month of quarter since the recipient of supplies covered by those two invoices desires to avail ITC in that month itself. Details of these two invoices may be furnished using IFF. The details of the remaining 8 invoices shall be furnished in FORM GSTR-1 of the said quarter. The two invoices furnished in IFF shall be reflected in FORM GSTR-2B of the concerned recipient of the first month of the quarter and remaining eight invoices furnished in FORM GSTR-1 shall be reflected in FORM GSTR-2B of the concerned recipient of the last month of the quarter.

It is re-iterated that said facility is not mandatory and is only an optional facility made available to the registered persons under the QRMP Scheme.

Whether invoices reported in IFF need to be reported again in GSTR-1?

The details of invoices furnished using the IFF in the first two months are not required to be furnished again in FORM GSTR-1.

Filing of GSTR-3B under QRMP Scheme?

Such registered persons would be required to furnish FORM GSTR-3B, for each quarter, on or before 22nd or 24th day of the month succeeding such quarter.

The amount deposited by the registered person in the first two months shall be debited solely for the purposes of offsetting the liability furnished in that quarter’s FORM GSTR-3B. However, any amount left after filing of that quarter’s FORM GSTR-3B may either be claimed as refund or may be used for any other purpose in subsequent quarters.

Monthly Payment of GST under QRMP Scheme?

The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by depositing the due amount in FORM GST PMT-06, by the twenty fifth day of the month succeeding such month. While generating the challan, taxpayers should select “Monthly payment for quarterly taxpayer” as reason for generating the challan.

The said person can use any of the following two options provided below for monthly payment of tax during the first two months –

1. Fixed Sum Method: A facility is being made available on the portal for generating a pre-filled challan in FORM GST PMT-06 for an amount equal to 35% of the tax paid in cash in the preceding quarter where the return was furnished quarterly; or 100% of the tax paid in cash in the last month of the immediately preceding quarter where the return was furnished monthly.
2. Self-Assessment Method: The said persons, in any case, 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.

The said registered person is free to avail either of the two tax payment method above in any of the two months of the quarter.

What if, taxpayer’s GST Input is more than output or output is zero?

In case balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due for the first month of the quarter or where there is nil tax liability, the registered person may not deposit any amount for the said month. Similarly, for the second month of the quarter, in case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the cumulative tax due for the first and the second month of the quarter or where there is nil tax liability, the registered person may not deposit any amount.

Any claim of refund in respect of the amount deposited for the first two months of a quarter for payment of tax shall be permitted only after the return in FORM GSTR-3B for the said quarter has been furnished. Further, this deposit cannot be used by the taxpayer for any other purpose till the filing of return for the quarter.

Applicability of Late Fee under QRMP Scheme?

Late fee is applicable for delay in furnishing of return / details of outward supply as per the provision of Section 47 of the CGST Act. As per the Scheme, the requirement to furnish the return under the proviso to sub-section (1) of Section 39 of the CGST Act is quarterly. Accordingly, late fee would be the applicable for delay in furnishing of the said quarterly return / details of outward supply. It is clarified that no late fee is applicable for delay in payment of tax in first two months of the quarter.

How to calculate interest on less GST Paid in QRMP Scheme?

(A) For registered person making payment of tax by opting Fixed Sum Method

i. No interest would be payable in case the tax due is paid in the first two months of the quarter by way of depositing auto-calculated fixed sum amount by the due date. In other words, if while furnishing return in FORM GSTR-3B, it is found that in any or both of the first two months of the quarter, the tax liability net of available credit on the supplies made /received was higher than the amount paid in challan, then, no interest would be charged provided they deposit system calculated amount for each of the first two months and discharge their entire liability for the quarter in the FORM GSTR-3B of the quarter by the due date.

ii. In case such payment of tax by depositing the system calculated amount in FORM GST PMT-06 is not done by due date, interest would be payable at the applicable rate, from the due date of furnishing FORM GST PMT-06 till the date of making such payment.

iii. Further, in case FORM GSTR-3B for the quarter is furnished beyond the due date, interest would be payable as per the provisions of Section 50 of the CGST Act for the tax liability net of ITC.

(B) For registered person making payment of tax by opting Self-Assessment Method

Interest amount would be payable as per the provision of Section 50 of the CGST Act for tax or any part thereof (net of ITC) which remains unpaid / paid beyond the due date for the first two months of the quarter.

Interest payable, if any, shall be paid through FORM GSTR-3B.

sdsd

Replied to Akshay Kedawat

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