All about GST Quarterly Return Monthly Payment (QRMP) Scheme
Q1. Who can take benefit of the QRMP Scheme?
Taxpayers whose aggregate turnover (incl Branc Transfers) is up to Rs. 5 Crore in the preceding financial year are eligible for QRMP Scheme.
In case if the aggregate turnover exceeds Rs.5 crore during any quarter in the current financial year, they shall not be eligible for the scheme from the next quarter.
E.g, If a Taxpayers aggregate Turnover for all GSTIN’s in FY 19-20 is Rs. 5 crore of less and Turnover in FY 20-21 upto Dec20 does not exceed Rs. 5 crore, such a tax payer can take benefit of the QRMP Scheme for filing GST Returns from Jan-21 onwards.
Some examples to better understand the eligibilty:
Q2. How does the Scheme Work?
Taxpayers would be required to pay tax due in each of the first two months of the quarter by depositing in pre filled Form GST PMT-06.
The payment is to be made by 25th of the succeeding month.
Taxpayers are required to file quarterly GSTR-3B on or before 22nd or 24th of the month succeeding the quarter.
Taxpayers have to declare outward supplies and ITC availed during the quarter. Amount deposited in the first two months shall be debited solely for offsetting the liability.
GSTR-3B has to be filed even if cancellation of registration was done during any of the first two months of the quarter.
Taxpayers are required to file quarterly GSTR-1 on or before 13th of the month succeeding the quarter.
Q3. What are the time limits to opt-in for the Scheme?
Taxpayers can opt in for QRMP Scheme for any quarter from first day of second month of preceding quarter to the last day of the first month of the quarter.
If a tax payer has to opt-in for the Quarter Apr21 to Jun21, the opt-in window starts on 1 Feb 21 and ends on 30 Apr 21
For a tax payer to opt-in for Jan21-Mar21 Quarter, the last date to opt-in is 31 Jan 21.
Q4. Are there any conditions at the time of Opt-in?
Yes. To exercise QRMP option, taxpayer must have filed all the due return (GSTR-3B and GSTR-1) as on the date of opt-in
Q5. How does the Monthly Payment work?
Taxpayers would be required to pay tax due in each of the first two months of the quarter by depositing in pre filled Form GST PMT-06.
The payment is to be made by 25th of the succeeding month.
Options for making monthly payment of tax:
- Fixed Sum method:
Taxpayer can pay tax by generating in challan for an amount equal to 35% of tax paid in cash in the preceding quarter if the return is furnished quarterly or make payment equal to the tax paid in cash last month if returns were filed monthly.
- Self Assessment method:
Taxpayer opting for the scheme can pay tax due in Form GST PMT-06 by considering tax liability on inward and outward supplies and the input tax credit available.
Q6. What if a eligible Taxpayer does not opt-in for the QRMP Scheme?
The important implications of the same will be :
- All taxpayers who are not under the QRMP Scheme will have to file monthly GSTR-1 by 11th of the succeeding month and GSTR-3B by 20th of the succeeding month
- Tax Payment to be done on or before filing of the GSTR-3B by Self Assessment method
- The ITC restrictions upto 105% of the ITC reflected in GSTR-2B will be applicable
Q7. What should an eligible Tax Payer having B2B sale do?
If a taxpayer is eligible for QRMP scheme and also has B2B sales/supplies, following is recommended for such a taxpayer:
- Opt-in for the QRMP Scheme
- The GST Dept has provided an option to upload B2B invoices upto Rs. 50 lacs per month via the Invoice Furnishing Facility (IFF). This is to be uploaded by the 13th of the succeeding month. Uploading invoices via the IFF will enable the customers of such taxpayers take setoff of such sales by taxpayer on monthly basis.
- Make GST Payment on monthly basis
- File GSTR-1 Quarterly
- File GSTR-3B Quarterly
Q8. Does it really reduce the compliance burden of Taxpayers, especially taxpayers having B2B Sales?
Let see how does it affect eligible taxpayers having B2B Sales:
- The taxpayers will mostly have to upload B2B invoices on monthly basis by 13th of succeeding month. This will help customers of such taxpayers to take GST Setoff immediately without any restriction under GSTR-2B
- Working of GST (i.e. GST on Sales minus GST on Purchases and Expenses) may reduce if taxpayer goes in for Fixed Sum Payment method. However, at the end of the quarter the entire GST working needs to be done.
- GSTR-1 on or before 13th of the month succeeding the quarter. This gives taxpayers less time to file GSTR1. Also there will an added task to reconcile which invoices have been uploaded by IFF and need not be again uploaded via GSTR1.
- As GST has to be paid by 25th of the succeeding month, taxpayers get approx 3 days more to pay the GST.
- Late filers can save on late fees as regular late filers were earlier required to pay late filing fees of GSTR-3B for months, instead of 1 month in QRMP Scheme
For more details and help on QRMP do get in touch with us…
