Quarterly Return Monthly Payment or QRMP scheme under Goods and Services Tax (GST) as it is called is a recently introduced scheme by the Government in its initiative to simplify compliance for taxpayers. The Central Board of Indirect Taxes (CBIC) issued GST Notification 82/2020, GST Notification 83/2020, GST Notification 84,2020 and GST Notification 85/2020 Central Tax dated 10-11-2020 and GST Circular 143/2020 on 10th November, whereby the registered persons having aggregate turnover up to Rs 5 crores to be allowed to furnish their GST returns on a quarterly basis along with monthly payment of tax under QRMP Scheme, with effect from January 01, 2021, i.e. from last quarter of FY 2020-21. Recently, the government made a few changes related to QRMP Scheme for the taxpayers. Read more about the QRMP Scheme updates in 2021
Here is a summary of all the changes introduced:
1. Eligibility to QRMP Scheme under GST
Registered taxpayers required to file GSTR 3B & having aggregate turnover up to Rs. 5 Crores in preceding FY (from FY 20-21) may opt to furnish GST returns on a Quarterly basis with a monthly payment of tax w.e.f 1st Jan, 2021 under Quarterly Returns and Monthly Payment Scheme (QRMP).
In case aggregate turnover exceeds Rs. 5 Crores during the current financial year, the taxpayer will not be eligible for furnishing of GST returns on monthly basis, from the first month of the quarter succeeding the quarter during which his aggregate turnover exceeds Rs. 5 crores
When the turnover exceeds Rs. 5 Crores in Oct ‘21 i.e FY 21-22, the taxpayer shall not be eligible to opt for quarterly filing from Oct ‘21 onwards
Note: Option to avail the QRMP Scheme is GSTIN wise and therefore different GSTINs on the same PAN have the option to avail the QRMP Scheme for one or more GSTINs. In simple words, some GSTINs for that PAN can opt for the QRMP Scheme, and remaining GSTINs may not opt for the Scheme.
Note: Aggregate annual turnover for the preceding financial year shall be calculated in the common portal taking into account the details furnished in the returns for the tax periods in the preceding financial year.
2. When can you avail the QRMP scheme
Option to file GSTR 3B on a quarterly basis can be availed any time during the year from the 1st day of the second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised.
Note: Taxpayer must have furnished the last return, as due on the date of exercising such option
Example: For Oct’21 to Dec’21 quarter, taxpayers can avail this scheme from 1st Aug’21 till 31 st Oct. And if he is availing the same on 27th August returns due on 22nd / 24th should be filed.
3. Validity of QRMP scheme under GST
The taxpayer continues to fall under the QRMP scheme once she has opted for the same. The scheme will be valid for all future periods unless the taxpayer becomes ineligible or voluntarily opts out of the scheme.
4. Details of outward supplies
The taxpayers who opt for QRMP have an option to furnish details of outward supplies in the 1st and 2nd month of the Quarter using Invoice Furnishing Facility (IFF). The outward supplies details should be furnished from 1st to 13th day of the succeeding month and this can be done up to the cumulative limit of Rs. 50 Lacs in each of the months. The details furnished through IFF will not be furnished for the GSTR 1 of the Quarter. Details that can be furnished through IFF is B2B Invoices (Inter & / or Intra State) and Debit Notes and Credit Notes
Note: B2C details will have to be furnished with GSTR 1 for all three months while filing GSTR 1 in the 3rd month
Invoice Furnishing Facility: The invoice Furnishing Facility will be a facility provided by the GSTN for taxpayers to submit the details of their outward supplies to the GST system for Month 1 and 2 of the quarter
5. Impact of using IFF on other returns
The details of outward supplies furnished by the supplier in GSTR-1 or using the IFF shall be made available electronically to the concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in FORM GSTR-6A through the common portal, as the case may be
GSTR-2B for every month shall be made available to the registered person,-
- for the first and second month of a quarter, a day after the due date of furnishing of details of outward supplies for the said month, in the IFF by a registered person required to furnish return for every quarter under proviso to sub-section (1) of section 39,or in GSTR-1 by a registered person, other than those required to furnish return for every quarter under proviso to sub-section (1) of section 39, whichever is later;
- In the third month of the quarter, a day after the due date of furnishing details of outward supplies for the said month, in GSTR-1 by a registered person required to furnish return for every quarter under proviso to sub-section (1) of section 39.”
6. Payment Process of QRMP scheme
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 GST PMT-06 the payment challan. While generating the payment challan, taxpayers should select “Monthly payment for the quarterly taxpayer” as a reason for generating the challan.
The said person can use any of the following two options provided below for monthly payment of tax during the first two months –
1. Fixed Sum Method (FSM):
a. For Return furnished quarterly in the preceding quarter: A facility is made available for generating a pre-filled challan in GST PMT-06 for an amount equal to 35%. of the tax paid in cash in the preceding quarter in case the return was furnished quarterly
b. For Return furnished monthly in the preceding quarter: Equal to the tax paid in cash in the last month of the immediately preceding quarter in case the return was furnished monthly.
Note: 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. A complete tax period means a tax period in which the person is registered from the first day of the tax period till the last day of the tax period.
2. Self Assessment Method (SAM): The said persons, in any case, can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit 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.
Taxpayer is free to avail either of the two tax payment methods above in any of the two months of the quarter.
Considerations before making payment through PMT 06
It is important to note in case the balance in the electronic cash and/or credit ledger is adequate for the tax due for the first month of the quarter or where there is nil tax liability, the registered person may not deposit any amount for the said month.
Similarly, for the second month of the quarter, in case the balance in the electronic cash and/or credit ledger is adequate for the cumulative tax due for the first and the second month of the quarter or where there is nil tax liability, the registered person may not deposit any amount.
Example: In case, filed last return on Quarterly basis
|Tax heads||GST paid in Cash in Quarter (April to June, 2021)||Balance in Electronic Cash/Credit Ledger in July and August 2021||GST payable through PMT 06 for each of months in following Quarter – July and August, 2021|
|CGST||10||3||= (10 X 35%) – 3 = 0.5|
|SGST||10||3||= (10 X 35%) – 3 = 0.5|
|IGST||10||3||= (10 X 35%) – 3 = 0.5|
|Cess||1||0||= (1 X 35%) – 0 = 3.5|
Example: In case, filed last return on Monthly basis
|Tax heads||GST paid in Cash in Month June, 2021||Balance in Electronic Cash/Credit Ledger in July 2021||GST payable through PMT 06 for the month of July 2021|
|CGST||10||3||10 – 3 = 7|
|SGST||10||3||10 – 3 = 7|
|IGST||10||3||10 – 3 = 7|
While filing the return for the said quarter in GSTR-3B, and any claim of refund of such amount lying in balance in the electronic cash ledger, if any, out of the amount so deposited shall be permitted only after the return in FORM GSTR-3B for the said quarter has been filed
7. Revised time limits
Taxpayer having turnover upto Rs. 5cr. can file GSTR 3B for Category A states by 22nd of Month following the quarter and 24th of Month following the quarter. Tax liability is paid for month 1 and 2 through PMT 06 by the 25th of following month.
Note: The amount deposited in the first two months shall be utilized solely for offsetting the liability furnished in respective quarter’s GSTR-3B
Details of outward supplies under QRMP Scheme:
For month 1 & 2 shall be furnished from 1st to 13th day of the succeeding month And GSTR 1 for the quarter shall be filed by 13th of month following the quarter.
Note: IFF is an optional facility made available to the registered persons under the QRMP Scheme.
8. Automatic Migration to QRMP scheme under GST
For the first quarter of the Scheme i.e. for the quarter Jan to Mar’21, in order to facilitate the taxpayers, it has been decided that all the registered persons, whose aggregate turnover for the FY 2019-20 is up to Rs. 5 crores and who have furnished the return in FORM GSTR-3B for the month of October, 2020 by 30th November, 2020, shall be migrated on the common portal. Therefore, it is advised to furnish the return of Oct’20 in time so as to be eligible for default migration (as per table below).
The taxpayers who have failed to file their return for October, 2020 on or before 30th November, 2020 will not be migrated to the Scheme. They will be able to opt for the Scheme once the FORM GSTR-3B as due on the date of exercising option has been filed.
|1||Having aggregate turnover of up to 1.5 crore rupees who have furnished GSTR-1 on quarterly basis in the current financial year||Quarterly return|
|2||Having aggregate turnover of up to 1.5 crore rupees who have furnished FORM GSTR-1 on monthly basis in the current financial year||Monthly Return|
|3||Having aggregate turnover more than 1.5 crore rupees and up to 5 crore rupees in the preceding financial year||Quarterly return|
Taxpayers can change the above option from 5th Dec, 2020 to 31st of Jan, 2021.
Note: Some GSTINs for that PAN can opt for the QRMP Scheme and remaining GSTINs may not opt for the Scheme
Impact of this QRMP scheme
1. For Month 1 & 2 of the quarter compliance schedule will be
a. 13th of following month: Furnish details of outward supplies i.e. B2B, CDN & DBN invoices using IFF facility (optional). And these details will be correspondingly reflected in GSTR 2A, 4A & 6A of counterparties
b. 25th of following month: Make payment using GST PMT-06 for the month
Note: Computation and Payment of GST liability continues to be monthly activity, though return filing has to be done on Quarterly basis
2. For Last month of the quarter compliance schedule will be
a. 13th of following month: File GSTR 1 for the Quarter including B2C supplies for the entire quarter
b. 22nd and 24th of the following month: File GSTR 3B for the quarter
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