The Central Board of Indirect Taxes & Customs introduced the Quarterly Return Filing & Monthly Payment of Taxes scheme under Goods & Services Tax to help small taxpayers whose turnover is less than Rs.5 crores. The Quarterly Return Payment (QRP) scheme allows the taxpayers to file Goods & Service Tax Return-3B (GSTR-3B) on a quarterly basis & pay tax every month

 

QRMP scheme: Eligible for QRMP scheme And Late fee under the QRMP scheme

1. Who is eligible for the QRMP scheme?

 

A registered person who is needful to furnish a return in FORM GSTR-3B (Goods & Service Tax Return-3B), & who has an aggregate turnover of up to five crore rupees in the preceding financial year, is eligible for the Quarterly Return Filing & Monthly Payment of Taxes (QRMP) Scheme.

 

The quarterly GSTR-3B filing option will be available from first Jan 2021 onwards. It’s clarified that this scheme is optional & can be availed based on GSTIN.

 

2. How to exercise Option for QRMP Scheme?

 

A registered person who intends to file his GSTR-3B quarterly should indicate the same on the Goods & Services Tax (GST) portal, from the first of the 2^nd month of the preceding quarter until the last day of the first month of the quarter for which such choice is being exercised.

 

For e.g.: If A wishes or desires to file quarterly returns for the quarter of January-March 2021, he should opt for quarterly filing on the common Goods & Services Tax (GST) portal between first November 2020 & 31st January 2021.

 

Once the registered person has opted for quarterly filing, he will have to continue to furnish his come-back quarter for all future tax periods, except within the following situations:

 

1. If the taxpayer becomes ineligible for furnishing a quarterly return.

 

2. A registered person will not be eligible to opt for furnishing quarterly returns if the last return, which was due on the date of exercising such an option, has not been furnished. The taxpayer has to follow the above procedure to opt for the monthly GSTR-3B. However, the GSTN case of registered persons falling within the classes specified in the table below, who have furnished their GSTR-3B return for Oct 2020 by thirtieth (30^th) Nov 2020, it shall be deemed that they have opted for monthly filing as detailed below-

 

S No.	Class of Registered Persons	Deemed Option
1	Registered individuals with an aggregate turnover of up to Rs.1.5 crore, who have furnished Form GSTR-1 quarterly in the current financial year	Quarterly GSTR-3B
2	Registered persons with an aggregate turnover of up to Rs.1.5 crore, who have furnished Form GSTR-1 monthly in the current financial year	Monthly GSTR-3B
3	Registered persons having an aggregate turnover exceeding Rs.1.5 crore and up to Rs.5 crore in the preceding financial year	Quarterly GSTR-3B

 

3. How to submit details of outward supplies?

 

The Invoice Furnishing Facility (IFF) can be used only when a taxpayer whose turnover is up to Rs.1.5 crore. One should keep the following points in mind before utilizing the Invoice Furnishing Facility (IFF):

• The IFF can be utilized only for the first two months of a quarter.
• The invoices relating to the last month of a quarter are to be uploaded in the GSTR-1 return only.
• There is no requirement to upload invoices in GSTR-1 if the same has been uploaded in the IFF.
• The taxpayer has to submit the B2B invoice details of sale transactions (both inter-state and intra-state) along with debit and credit notes of the B2B invoices issued during the month.
• The total net value of invoices that can be uploaded is restricted to Rs.50 lakh per month.
• The details submitted in IFF will be reflected in the GSTR-2A, GSTR-2B, GSTR-4A, or GSTR-6A of the recipients as the case may be.
• The Invoice Furnishing Facility will come into effect from 01.01.2021

 

Note: There might be a situation where a taxpayer aggregate turnover’s more than 1.5 crores but below Rs. 5 crores & those taxpayers can’t avail IFF utility to report their outward supplies. In such cases, they can opt for the Quarterly Return Filing & Monthly Payment of Taxes (QRMP) scheme, but they have to submit their outward supplies in GSTR-1(Goods & Services Tax Return) on a monthly basis.

 

4. How to make monthly tax payments under the Quarterly Return Filing & Monthly Payment of Taxes scheme?

 

The taxpayer has to deposit tax using form Goods & Services Tax (GST) PMT-06 by the 25th of the following month, for the first and second months of the quarter.

 

Fixed Sum Method (FSM):

 

The taxpayer must pay an amount of tax mentioned in a pre-filled challan in the form Goods & Services Tax (GST) PMT-06 for an amount equal to 35% of the tax paid in cash.

 

S No	Type of Taxpayer	Tax to be paid
1	Who furnished GSTR-3B quarterly for the last quarter	35% of tax paid in cash in the preceding quarter
2	Who furnished GSTR-3B monthly during the last quarter	100% of tax paid in cash in the last month of the immediately preceding quarter

 

Example of understanding FSM:

 

Scenario 1: If GSTR-3B for Jan- March to 2021 was filed on a quarterly basis

 

 

Tax paid in cash during Jan’21 – Mar’21 quarter			Tax required to be paid in each of Apr’21 and May’21
CGST	10,000		CGST	3,500
SGST	10,000		SGST	3,500
IGST	20,000		IGST	7,000
Cess	3,000		Cess	1,050

 

Scenario 2: If GSTR-3 was filed on a monthly basis during the quarter of Jan-mar to 2021

 

 

Tax paid in cash during Mar’21			Tax required to be paid in each of Apr’21 and May’21
CGST	3,000		CGST	3,000
SGST	3,000		SGST	3,000
IGST	5,000		IGST	5,000
Cess	1,000		Cess	1,000

 

Self Assessment Method (SAM):

 

This is the existing method where a taxpayer can pay the tax liability by considering the tax liability on inward & outward supplies & the input tax credit available. The payer has to manually arrive at the tax liability for the month & has to pay the same in form of Goods & Services Tax PMT-06. For ascertaining the amount of ITC obtainable for the month the payer can use form GSTR-2B

 

There are certain instances where no amount may be needful to be deposited, such as –

 

• For the first month of the quarter – where the balance in the electronic money ledger is adequate for the tax liability of the said month.
• For the second month of the quarter – where the balance in the electronic cash ledger is adequate for the accretive tax liability for the first & second months of the quarter.
• It’s to be noted that a registered person won’t be eligible for the said procedures unless he has furnished the return for the entire tax period proceeding such month.

 

5. Due dates for filing quarterly GSTR-3B

 

The payable dates filing quarterly GSTR-3B has been notified as follows:

 

 

S 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

 

6. Interest under the QRMP scheme

 

S No	Scenario	Interest to be paid
1	Tax liability mentioned in pre-filled form GST PMT-06 is paid by 25th of the following month	Nil
2	Tax liability mentioned in pre-filled form GST PMT-06 is not paid by 25th of the following month	18% of the tax liability
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 quarterly GSTR-3B due to date	Nil
5	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

 

The interest will be applicable as follows if the taxpayers give off for Self Assessment Method:

 

The taxpayer has to pay an interest of @ 18 percentages on the net tax liability which remains unpaid or paid beyond the due date for the first two months of the quarter.

 

7. Late fee under the QRMP scheme

 

.

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

 

E-Invoicing is India’s biggest tax reform next to GST, which will immediately encompass every business. Stay ahead of the curve! Read our article to get an overview of the e-Invoicing System.