Quarterly Return Monthly Payment (QRMP) scheme proposed under GST tax regime is to reduce the compliance burden on Small Businesses. Covering Eligibility for the QRMP Scheme, Effective date, Time Limit for availing QRMP scheme, Monthly Payment of Tax, Special Cases, Applicability of Interest
As part of "Ease of doing Business" (EODB) and to provide relief to small tax payers, CBIC has introduced the "Quarterly Return Monthly Payment" (QRMP) Scheme in its 42nd GST Council Meeting. QRMP Scheme is applicable to the taxpayers whose turnover is less than or equal to 5 crores in the preceding financial year.
1. Eligibility for the QRMP Scheme
The following dealers (person / business / entity) can opt for QRMP Scheme i.e., pay tax on Monthly basis and file returns Quarterly.
- A registered dealer who is required to file monthly GSTR-3B and whose turnover is upto Rs 5 Crores in preceding financial year can opt for QRMP Scheme.
- Any dealer who is taking new GSTIN or opting out of Composition scheme can avail QRMP scheme.
2. Effective date for QRMP Scheme
QRMP Scheme is effective from Jan 01st 2021. This scheme is applicable from Jan to March 2021 Quarter
3. Time Limit for availing QRMP scheme
- QRMP Scheme can be availed throughout the year, in any quarter.
- The registered persons can opt in for any quarter from the first day of second month of preceding quarter to the last day of the first month of the quarter.
Note & an Example
Note: The registered person must have furnished the last return, as due on the date of exercising such option to avail QRMP Scheme
Mr Ram wants to avail QRMP scheme for July to Sep 2021 Quarter. He can exercise this from May 1 2021 to July 31 2021.
If Mr Ram is exercising this on June 27, he should have filed GSTR 3B for May 2021 before June 22/24
- The Taxpayers are not required to exercise the option every quarter. The Option once exercised will remain same for succeeding quarters also unless the taxpayer changes the option.
4. Monthly Payment of Tax
- The Registered dealer under QRMP scheme is required to pay the tax Monthly. The Taxpayer is required to pay the tax due in Form GST PMT-06 for each of the first 2 months in an quarter by 25th of Next Month.
- There are 2 methods of Tax Payment for first 2 months in an quarter
- Fixed Sum Method: GST Portal will generate a prefilled challan (35% or 100%) in Form GST PMT 06 based on his past record.
- Self-Assessment Method: The Taxpayer needs to pay the actual tax liability on his actual sales after deducting Input Tax Credit
In fixed sum method, the 35% Challan can be generated by selecting the Reason For Challan> Monthly Payment for Quarterly Return> 35% Challan
which is in turn calculated as per following situation:
- 35% of amount paid as tax from Electronic Cash Ledger in their preceding quarter GSTR 3B return, if it was furnished on quarterly basis; or
- 100% of the amount paid as tax from Electronic Cash Ledger in their GSTR-3B return for the last month of the immediately preceding quarter, if it was furnished on monthly basis.
5. Cases in which taxpayers are not required to pay the monthly taxes
The Taxpayers are not required to deposit any amount in the first 2 months if
- There is no tax liability.
- Balance in Electronic cash ledger/credit ledger is sufficient.
6. Applicability of Interest
- Fixed Sum Method: No interest if the taxpayer has paid the tax due in the first 2 months of the quarter with in due date. If the payment is not done in due date, Interest will be applicable from the due date to the date of payment at applicable rates
- Self-Assessment tax Method: Interest would be payable on the tax payable (net of ITC) which remains unpaid/paid beyond the due date