Introduction

Quarterly return monthly payment (QRMP) is a trade facilitation scheme that eases the process of doing business. I

t is an optional return filing scheme introduced for small taxpayers having aggregate turnover of up to 5 crores in the preceding financial year. This scheme aims to reduce the compliance burden on the taxpayer as it allows furnish their form GSTR1 and form GSTR 3B on a quarterly basis while paying their tax on a monthly basis through a simple challan.

Under QRMP scheme taxpayers need to file only 4 GSTR- 3B returns instead of 12 GSTR-3B returns in a year. Similarly, they would be required to file only 4 GSTR-1 returns.

QRMP scheme is GSTIN wise not PAN based scheme. It simply means that GSTINs for a PAN can opt for the QRMP scheme and remaining GSTINs may not opt for the said scheme. But turnover limit of Rs. 5 crore is counted PAN-wise only.

Eligibility for QRMP scheme

Taxpayers whose aggregate turnover is up to rupees 5 Crore in the preceding financial year are eligible for QRMP scheme. For computing aggregate turnover, details furnished in returns for tax period in the preceding financial year shall be taken into account.

Condition to be fulfilled for becoming eligible

Make sure that before opting for this scheme, the last return of the previous period has been filed in a timely manner.

For example, if a registered person intending to avail QRMP scheme for the quarter July to September is exercising his option on the 27th of July for the said quarter, he must have furnished the return for the month of June which was due on 20th July.

Manner of exercising option of QRMP scheme

A registered person intending to opt for QRMP scheme for any quarter shall select this option for furnishing of return on a quarterly basis from 1st day of the 2nd month of the preceding quarter till the last day of the 1st month of the quarter for which the option is being exercised.

For example, a registered person intending to avail QRMP scheme for the quarter from July to September can exercise his option from 1st May to 31st July.

Registered persons under the QRMP scheme are not required to exercise the option every quarter. Where such an 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. Further where such option has been exercised once, the said registered person shall continue to furnish the return on quarterly basis for future tax periods, unless -

• He becomes ineligible for this scheme as per the conditions and restrictions notified in this regard or
• He opts for furnishing the return on a monthly basis

When QRMP scheme lapse?

In the case where a registered person’s aggregate turnover exceeds 5 crores during a quarter of a financial year, he shall not be eligible for furnishing of return on quarterly basis from the first month of the succeeding quarter. He shall opt for furnishing the return on a monthly basis, electronically, on a common portal, from the first month of the next quarter (when his turnover exceeds).

Due dates for filing returns under QRMP

Due date for filing the return in form GSTR-3B in case of a taxpayer opting for QRMP scheme is 22nd or 24th of the month succeeding the quarter for which return is furnished.

Here we can see that two dates are mentioned in the case of the QRMP scheme. It depends upon different states-

For GSTR-1 due date of filing is 13th of the month of succeeding quarter.

For the quarter April to June GSTR-1 has to be filed till 13th of July.

Payment of tax under QRMP scheme

Every registered person furnishing return under QRMP scheme shall pay to government an amount equal to tax due to inward and outward supplies of goods or services or both, ITC availed, tax payable and such other particulars during a month. Every registered person under QRMP scheme shall pay tax due for each of the first 2 months of the quarter, by depositing the said amount in, by the 25th day of the month succeeding such month in form GST PMT-06.

While making a tax deposit, registered person may-

1. For the 1st month of the quarter, take into account the balance in the electronic cash ledger
2. For the 2nd month of the quarter, take into account the balance in the electronic cash ledger excluding the tax due for the first month

At the time of filing the return for the said quarter in form GSTR-3B, the amount deposited by the registered person in the first 2 months of the quarter shall be debited.

Options available for making monthly payment of tax

At the time of generating challan, taxpayer should select “monthly payment for quarterly taxpayer” as a reason. Any of the following two options can be used-

1. Fixed sum method
2. Self- assessment method

Let us discuss both methods briefly-

Fixed sum method

If a taxpayer chooses this option, an auto generated or prefilled challan facility is available on the portal. The challan amount is calculated by the system which cannot be edited. The amount is equal to-

• 35% of the tax paid in cash in the return for the preceding quarter where the return was furnished quarterly or
• Tax liability paid in cash (100% of tax) in the return for the last month of the immediately preceding quarter where the return was furnished monthly.

For clear understanding let us see an example-

When last return was filed on quarterly basis for quarter Jan to Mar

Tax paid in cash in quarter (January-March)

Tax to be paid in each of the months-April to May

When last return was filed on monthly basis for March

Tax paid in cash in March

Tax to be paid in each of the month of April & May

Where the balance in the electronic cash ledger/electronic credit ledger is adequate for the tax liability, then no such amount is required to be deposited.

Monthly tax payment through this method would not be available to those registered persons who have not furnished the return for a complete tax period preceding such month.

Self-assessment Method

In this method, taxpayers can pay the tax due by considering the tax liability on inward and outward supplies and the ITC available, in form GST PMT-06.

In order to facilitate ascertainment of the ITC available for the month, an auto-drafted input tax credit statement has been made available in form GSTR-2B, for every month.

Interest and Late fee

Under the fixed sum method, when tax due is paid in the first two months of the quarter by way of depositing auto- calculated fixed sum amount by due date, then interest amount would be NIL. In case form GSTR-3B is filed beyond due date then interest would be payable as per section 50 i.e. 18% of net tax liability.

Under the self-assessment method interest amount would be payable for tax or any part thereof which remains unpaid /paid beyond the due date for the first 2 months of the quarter.

It is clarified that NO Late Fee is payable for delay in payment of tax in the first two months of the quarter, only interest is payable.

Important sections