Qrmp of gst

Presentation on QRMP of GST

1. 2021
Quarterly Return
Filing and
Monthly Payment of
Taxes (QRMP)
Scheme under GST
Classroom
Deliberations
CA Dr PrithviRanjanParhi
11:29 AM © CA Dr Prithvi Ranjan Parhi 1

2. QRMP
•TheCentralBoardofIndirect
Taxes&Customs (CBIC)
introducedQuarterlyReturnFiling
andMonthlyPaymentofTaxes
(QRMP)schemeunderGoods
andServicesTax(GST)tohelp
smalltaxpayerswhoseturnoveris
uptoRs.5crores.
•TheQRMPschemeallowsthe
taxpayerstofileGSTR-3Bona
quarterlybasisandpaytaxevery
month.
Turnove
r
<
Rs.5
crores.
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3. Who is eligible for the QRMP scheme?
•AregisteredpersonwhoisrequiredtofurnishareturninGSTR-
3B,andwhohasanaggregateturnoverofuptoRs.5croreinthe
precedingfinancialyear,iseligiblefortheQRMPScheme.
•Further,incasetheaggregateturnoverexceedsRs.5croreduring
anyquarterinthecurrentfinancialyear,theregisteredperson
shallnotbeeligiblefortheschemefromthenextquarter.
•Itisclarifiedthattheaggregateannualturnoverforthepreceding
financialyearshallbecalculatedinthecommonportaltakinginto
accountthedetailsfurnishedinthereturnsbythetaxpayerforthe
taxperiodsintheprecedingfinancialyear.
•ThequarterlyGSTR-3Bfilingoptionwasmadeavailablefrom1st
January2021onwards.
•Itisclarifiedthatthisschemeisoptionalandcanbeavailedbased
onGSTIN.
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4. How to exercise Option for QRMP
Scheme?
•Aregisteredpersonwhointendstofilehis
GSTR-3Bquarterlyshouldindicatethesame
ontheGSTportal,fromthe1stofthesecond
monthoftheprecedingquarteruntilthelast
dayofthefirstmonthofthequarterforwhich
suchoptionisbeingexercised.
•Example:IfAwishestofilequarterlyreturns
forthequarterofApr-Jun2021,heshould
haveoptedforquarterlyfilingonthecommon
GSTportalbetween1stFebruary2021and
30thApril2021.
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6. Opting for QRMP
•Oncetheregisteredpersonhasoptedforquarterlyfiling,
hewillhavetocontinuetofurnishhisreturneveryquarter
forallfuturetaxperiods,exceptinthefollowingsituations:
1.Ifthetaxpayerbecomesineligibleforfurnishingaquarterly
return(forexample,iftheaggregateturnovercrossesRs.5
croreduringaquarter,thenfromthenextquarterhewillnot
beabletofilequarterlyreturns).Insuchacase,thetaxpayer
mustfurnishGSTR-3Bonamonthlybasis.
2.Aregisteredpersonwillnotbeeligibletooptforfurnishing
quarterlyreturnsifthelastreturn,whichwasdueonthedate
ofexercisingsuchanoption,hasnotbeenfurnished.
•Forexample,ifthepersonisoptingforquarterlyGSTR-
3Bfilingon1stJune2021,hewillneedtofurnishhis
GSTR-3BreturnforApril2021,whichwouldhavebeen
thelastreturndueonthedateofexercisingthequarterly
filingoption.
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7. Opting for QRMP
•ThetaxpayerhastofollowtheaboveproceduretooptforthequarterlyGSTR-
3B.
•However,incaseofregisteredpersonsfallinginthecategoriesspecifiedinthe
tablebelow,whohavefurnishedtheirGSTR-3BreturnforOctober2020by30th
November2020,itshallbedeemedthattheyhaveoptedformonthlyorquarterly
filingasdetailedbelow
•-ThetaxpayersreferredtointheSl.No.2intheabovetablecouldhavechangedthedefaultoptionandoptforquarterlyGSTR-3B
filingbetween5thDecember2020and31stJanuary2021.
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S No.Class of Registered Persons Deemed Option
1 Registeredindividualswithanaggregateturnoverofupto
Rs.1.5crore,whohavefurnishedFormGSTR-1quarterlyin
thecurrentfinancialyear
Quarterly GSTR-3B
2 Registeredpersonswithanaggregateturnoverofupto
Rs.1.5crore,whohavefurnishedFormGSTR-1monthlyin
thecurrentfinancialyear
Monthly GSTR-3B
3 Registeredpersonshavinganaggregateturnoverexceeding
Rs.1.5croreanduptoRs.5croreintheprecedingfinancial
year
Quarterly GSTR-3B

8. How to submit details of outward supplies?
•ThetaxpayerswhooptedfortheQRMPschemecanuse
theInvoiceFurnishingFacility(IFF)whichallowsquarterlyGSTR-1
filerstouploadtheirinvoiceseverymonth.
•Oneshouldkeepthefollowingpointsinmindbeforeutilisingthe
IFF:
•TheIFFcanbeutilisedonlyforthefirsttwomonthsofaquarter.
•Theinvoicesrelatingtothelastmonthofaquarteraretobeuploaded
intheGSTR-1returnonly.
•ThereisnorequirementtouploadinvoicesinGSTR-1ifthesame
hasbeenuploadedintheIFF.
•ThetaxpayerhastosubmittheB2Binvoicedetailsofsale
transactions(bothinter-stateandintra-state)alongwithdebitand
creditnotesoftheB2Binvoicesissuedduringthemonth.
•Thetotalnetvalueofinvoicesthatcanbeuploadedisrestrictedto
Rs.50lakhpermonth.
•ThedetailssubmittedinIFFwillbereflectedintheGSTR-2A,GSTR-
2B,GSTR-4AorGSTR-6Aoftherecipientsasthecasemaybe.
•TheInvoiceFurnishingFacilityhascomeintoeffectfrom1stJanuary
2021.
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9. Invoice Furnishing Facility(IFF)
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QRMP
Supplier
Month 1
Month 2
Month 3
Can Upload Invoices/
Dr Notes/Cr Notes in
IFFby 13 of
Subsequent month
Will be reflected
in the GSTR-2A,
GSTR-2B, GSTR-4A
or GSTR-6A of the
recipients
Uploaded
in IFF for
Month 1
& 2 ?
Upload
Month 3
Invoices in
GSTR 1 by
13 of the
1st month
of the
next
quarter
Upload Month 1,2
& 3 Invoices in
GSTR 1 by 13 of
the 1st month of
the next quarter
N
o
Yes

10. Monthlytax payments under the QRMP
scheme
•Thetaxpayerhastodeposittaxusingform
PMT-06bythe25thofthefollowingmonth,
forthefirstandsecondmonthsofthe
quarter.
•Thetaxpayerscanpaytheirmonthlytax
liabilityeitherinthe
1.FixedSumMethod(FSM),alsopopularas
35%challanmethod,orusethe
2.SelfAssessmentMethod(SAM).
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11. Fixed Sum Method (FSM) or
35% challan method:
•Thetaxpayermustpayanamountoftax
mentionedinapre-filledchallanintheform
GSTPMT-06foranamountequalto35%
ofthetaxpaidincash.
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S NoType of Taxpayer Taxtobepaid
1 Who furnished GSTR-3B quarterly for
the last quarter
35%oftaxpaidincashinthe
precedingquarter
2 Who furnished GSTR-3B monthly during
the last quarter
100%oftaxpaidincashinthelast
monthoftheimmediatelypreceding
quarter

12. Scenario 1:
If GSTR-3B for January 2021 to March 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 10,000CGST 3,500
SGST 10,000SGST 3,500
IGST 20,000IGST 7,000
Cess 3,000Cess 1,050
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13. Scenario 2:
If GSTR-3 was filed on amonthly basis
during the quarter of January 2021 to March
2021
Tax paid in cash during Mar’21
Tax required to be paid in each of
Apr’21 and May’21
CGST 3,000CGST 3,000
SGST 3,000SGST 3,000
IGST 5,000IGST 5,000
Cess 1,000Cess 1,000
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14. Self Assessment Method (SAM):
•Thisistheexistingmethodwhereataxpayercanpaythetaxliability
byconsideringthetaxliabilityoninwardandoutwardsuppliesand
theinputtaxcreditavailable.
•Thetaxpayerhastomanuallyarriveatthetaxliabilityforthemonth
andhastopaythesameinformPMT-06.
•ForascertainingtheamountofITCavailableforthemonththe
taxpayercanuseformGSTR-2B.
•Therearecertaininstanceswherenoamountmayberequiredtobe
deposited,suchas–
1.Forthefirstmonthofthequarter–wherethebalanceintheelectronic
cash/creditledgerisadequateforthetaxliabilityofthesaidmonthOR
wherethetaxliabilityisnil.
2.Forthesecondmonthofthequarter–wherethebalanceinthe
electroniccash/creditledgerisadequateforthecumulativetaxliability
forthefirstandsecondmonthsofthequarterORwherethetaxliability
isnil.
•Itistobenotedthataregisteredpersonwillnotbeeligibleforthe
saidproceduresunlesshehasfurnishedthereturnforthecomplete
taxperiodprecedingsuchmonth.
•Acompletetaxperiodisataxperiodwherethesaidpersonis
registeredfromthefirstuntilthelastdayofthetaxperiod.
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15. Due dates for filing quarterly
GSTR-3B
SNoGSTRegistrationinStatesandUnionTerritories DueDate
1 Chhattisgarh,MadhyaPradesh,Gujarat,DadraandNagar
Haveli,DamanandDiu,Maharashtra,Karnataka,Goa,
Lakshadweep,Kerala,TamilNadu,Puducherry,Andamanand
NicobarIslands,TelanganaandAndhraPradesh
22ndofthemonth
succeedingsuch
quarter
2 JammuandKashmir,Ladakh,HimachalPradesh,Punjab,
Chandigarh,Uttarakhand,Haryana,Delhi,Rajasthan,Uttar
Pradesh,Bihar,Sikkim,ArunachalPradesh,Nagaland,
Mizoram,Manipur,Tripura,Meghalaya,Assam,WestBengal,
JharkhandandOdisha
24thofthemonth
succeedingsuch
quarter
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16. Input Tax Credit Claims under
QRMP Scheme
•ThereisnoproceduraldifferenceinthewayInputTaxCredit
(ITC)isclaimedbyaregisteredpersonoptingintotheQRMP
scheme.
•TheQRMPtaxpayerswhoareusingtheself-assessmentmethod
ofcalculatingthetaxpaymentsforthefirsttwomonthsofthe
quartercanconsidertheITCavailableaspertheirGSTR-2Bfor
themonth.
•Accordingly,theycanpaythebalanceascashtowardstheGST
liability.
•However,theGSTR-2Bforthequartergetsgeneratedon14thof
themonthfollowingthequarteruponthefilingofquarterlyGSTR-
1.
•Hence,thebuyerswhodealwiththevendorsundertheQRMP
schemewillneedtorefertoquarterlyGSTR-2BforITCclaims.
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17. Interest under QRMP scheme
S NoScenario Interest to be paid
1 Taxliabilitymentionedinpre-filledformGSTPMT-
06ispaidby25thofthefollowingmonth
Nil
2 Taxliabilitymentionedinpre-filledformGSTPMT-
06isnotpaidby25thofthefollowingmonth
18%ofthetaxliability(from
26thofthefollowingmonth
tillthedateofpayment)
3 Thefinaltaxliabilityforthefirsttwomonthsisless
thanorequaltotheamountpaidthroughpre-
filledformGSTPMT-06
Nil
4 Thefinaltaxliabilityforthefirsttwomonths
ishigherthanthetaxamountpaidthroughpre-
filledformGSTPMT-06,andsuchexcessliability
hasbeenpaidwithinquarterlyGSTR-3Bduedate
Nil
5 Thefinaltaxliabilityforthefirsttwomonths
ishigherthanthetaxamountpaidthroughpre-
filledformGSTPMT-06,andsuchexcessliability
hasnotbeenpaidwithinquarterlyGSTR-3Bdue
date
18%ofthetaxliability(from
GSTR-3Bduedate*tillthe
dateofpayment)
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18. LatefeeunderQRMPscheme
ThelatefeeshouldbepaidasfollowsifthequarterlyGSTR-
3Bisnotfiledwithinduedate,subjecttoamaximumlatefees
of Rs 5,000:
Name of the Act Late fee for everyday of
delay
Late fee for everyday 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
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19. Optout from the QRMP scheme
•OneoptoutfromtheGSTportalGST.GOV.IN>Services
>Returns>Opt-inforQuarterlyReturnoptiontooptinor
optoutoftheQRMPscheme.
•Itisatthediscretionofthetaxpayerthatwhetherhewantstoopt-inor
opt-out.
Buthehastooptinoroptoutinthefirstmonthofanyquarter.
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20. Thank you
[email protected]
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