Proviso to Section 39(1) of the Central Goods and Services Tax (‘CGST’) Act, 2017 empowers the Government to notify a certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to the manner prescribed in Rule 61A of CGST Rules, 2017. The Central Board of Indirect Taxes & Customs (CBIC) introduced Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under Goods and Services Tax (GST) to help small taxpayers whose turnover is less than Rs.5 crores.
Further, proviso to Section 39(7) of the CGST Act, 2017 provides that the notified persons shall be required to pay the tax due to the Government within such time as may be prescribed considering particulars such as inward and outward supplies, input tax credit availed, etc. during a month. In this regard, the CBIC notified a class of registered persons (discussed in Para 3) who are required to furnish a return every quarter from January 2021 onwards and pay the tax due every month.The QRMP scheme allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month.
Eligibility of QRMP Scheme in Case of New Registration
A newly registered taxpayer whose aggregate turnover is up to Rs. 5 Crores can opt for the QRMP scheme based on the following conditions:
- If the registration is granted on any date during the first month of a quarter, the registered person will be able to opt for the QRMP scheme from the beginning itself.
- If the registration is granted on any of the dates during the latter two months of a quarter, then the registered person will be able to opt for the QRMP scheme only from the next quarter onwards.
Manner of Opting QRPM Scheme
The facility to avail the Scheme on the common portal would be available throughout the year [Navigate: Services > Returns > Opt-in for Quarterly Return]. A registered person can opt-in for any quarter from the first day of the second month of the preceding quarter to the last day of the first month of the quarter. There is no requirement to opt for the Scheme each quarter separately. Once the Scheme is exercised, it would be valid for future tax periods also.
Benefits of the QRMP Scheme
- Compliance burden of the taxpayer has reduced significantly.
- Taxpayers needs to file only 4 GSTR-3B returns instead of 12 GSTR-3B returns in a year.
- Taxpayers would be required to file only 4 GSTR-1 returns since Invoice Filing Facility (IFF) is provided under this scheme.
- Furnish invoice details in IFF depending upon the requirement of their recipient, for first two months of the quarter. The remaining invoice details can be furnished in the quarterly GSTR-1.
- Pay monthly tax conveniently using Fixed Sum Method (Pre-filled Challan) or Self-Assessment Method (actual tax due after adjusting ITC) in first two months of a Quarter
- Easily opt in and opt out of the Scheme
Quarterly Filing of Form GSTR-3B
The registered persons opting for the QRMP Scheme would be required to furnish Form GSTR-3B, for each quarter, on or before the 22nd or 24th day of the month succeeding such a quarter for the Class A States and the Class B States respectively or such notified date.
Any amount found to be paid in excess after filing of that quarter’s FORM GSTR-3B may either be claimed as a refund or may be used for any other purpose in subsequent quarters.
Furnishing Details of Outward Supply with Invoice Furnishing Facility (IFF)
The registered persons opting for the Scheme would be required to furnish the details of an outward supply in Form GSTR-1 every quarter.
However, the supplier has been given an option to furnish the details monthly. For this, the Invoice furnishing facility (‘IFF’), which is optional in nature, has been introduced for furnishing the details of invoices of supply made to registered persons for the first two months of the quarter. Notably, the taxpayer can upload a maximum of Rs. 50 Lakhs invoices in each of the two months of the quarter. The invoices may be uploaded at once or continuously in IFF from the 1st day of the month till the 13th day of the succeeding month. The details uploaded in the IFF shall be duly reflected in the Form GSTR-2A and Form GSTR-2B of the concerned recipient.
Monthly Payment of Tax
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. The amount shall be deposited by the 25th day of next month. 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.
A facility would be made available on the portal for generating a pre-filled challan in Form GST PMT-06. The person can use any of the following two options for the monthly payment of tax during the first two months:
|Method||Amount of Tax to be Paid in Form GST PMT-06||Interest in Case Actual Liability Differs with the Tax Payment||Late Fee|
|Fixed Sum Method||a) If the last return is furnished quarterly, an amount equivalent to 35% of the tax liability paid for the previous quarter shall be paid
b) If the last return is furnished monthly, the tax liability paid in the return for the previous month shall be paid
|No interest would be required to be paid, provided tax is paid by the due date||No late fee would be applicable on delay in payment of tax using Form PMT-06|
|Self-Assessment Method||The persons can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit available.||Interest would be applicable|
What is the criteria for determining the threshold annual turnover limit- PAN or GSTIN?
The option to avail the QRMP Scheme is GSTIN wise and therefore, distinct persons as defined in Section 25 of the CGST Act (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.