Taking another step towards the goal of increasing “Ease of doing business” in India and providing relief to small taxpayers; the GST Council in their 42nd Meet on 5th October 2020 proposed a quarterly return filing system for small taxpayers to be implemented w.e.f. 1st January, 2021 for the 4th Quarter. QRMP or Quarterly Return Monthly Payment Scheme is an optional scheme that CBIC has rolled out for small scale businesses having aggregate turnover up to 5 crore rupees to furnish return on a quarterly basis along with monthly payment of tax. Thus, the small taxpayers would only need to file 8 returns (4 GSTR 1 and 4 GSTR 3B) in a year as compared to 16 returns a year at present.
A registered Taxable Person whose Aggregate turnover (PAN wise) does not exceed ₹5 Crores in the preceding Financial Year, is eligible for the QRMP Scheme. Further, in case the Aggregate Turnover exceeds ₹5 Crores during any Quarter in the current Financial Year, the registered person shall not be eligible for the scheme form the next Quarter.
Time Limit to opt for QRMP scheme
|Sr. No.||Period – Quarter||Timeline|
|1.||April – June||1st Feb 2021 to 30th April 2021|
|2.||July – Sept||1st May 2021 to 31st July 2021|
|3.||Oct – Dec||1st August 2021 to 31st Oct 2021|
|4.||Jan – March||1st Nov 2021 to 31st Jan 2022|
Monthly Payment of Tax
Registered Persons under the QRMP Scheme need to pay the tax due in each of the first two months by 25th of the following month of the Quarter by depositing the due amount in FORM GST PMT-06, by selecting “Monthly Payment for the Quarterly Taxpayer as the reason for generating Challan.
The Taxpayers can pay their tax liability either in the Fixed Sum Method (FSM) or Self-Assessment Method (SAM).
- Fixed Sum Method: The Taxpayer must pay an amount of tax mentioned in a pre-filled Challan in form GST PMT-06 for an amount equal to 35% of the tax paid in cash in the previous Quarter or 100% of the tax paid in the previous month (in case GSTR-3B was previously filed Monthly during the last Quarter).
- 2.Self-Assessment Method: Manual Computation of taxes to be paid in cash where the tax liability is equal to the liability on outward supplies plus tax under RCM on inward supplies net Eligible ITC. If cash balance in available in the Electronic Cash Ledger, then only balance deposit would be sufficient.
Invoice Furnishing Facility (IFF)
- The registered persons opting for the Scheme would be required to furnish the details of outward supply in FORM GSTR-1 quarterly as per the rule 59 of the CGST Rule.
- For each of the first and second month of a quarter, such a registered person will have the IFF to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month.
- The said details of outward supplies shall, however, not exceed the Rs. 50 Lakhs in each month. It may be noted that after 13th of the month, this facility for furnishing IFF for previous month would not be available
- As a facilitation measure, a feature of continuous upload of invoices would also be provided for the registered persons wherein they can save the invoices in IFF from the 1st day of the month till 13th day of the succeeding month.
- The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.
- The said facility is not mandatory and is only an optional facility made available to the registered persons under the QRMP Scheme.
- The details of invoices furnished using the said facility in the first two months are not required to be furnished again in FORM GSTR-1. Accordingly, the details of outward supplies made by such a registered person during a quarter shall consist of details of invoices furnished using IFF for each of the first two months and the details of invoices furnished in FORM GSTR-1 for the quarter. At their option, a registered person may choose to furnish the details of outward supplies made during a quarter in FORM GSTR-1 only, without using the IFF.
Quarterly GSTR-3B Return
- Such registered persons would be required to furnish FORM GSTR-3B, for each quarter, on or before 22nd or 24th day of the month succeeding such quarter.
- In FORM GSTR-3B, they shall declare the supplies made during the quarter, ITC availed during the quarter and all other details required to be furnished therein.
- 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.
- However, any amount left after filing of that quarter’s FORM GSTR-3B may either be claimed as refund or may be used for any other purpose in subsequent quarters.
- In case of cancellation of registration of such person during any of the first two months of the quarter, he is still required to furnish return in FORM GSTR-3B for the relevant tax period.
Return Filing Due-Dates w.e.f 1st Jan 2021
|Category of Taxpayers||GSTR-1||Invoice Filing Facility||PMT- 06 for M 1||PMT-06 for M 2||GSTR-3B|
|Taxpayers who are required to file monthly returns: (whose ATO TO is more than 5 Cr. Or who have not opted from QRMP Scheme)||11th of the following month||NA||NA||NA||20th of the following month|
|Taxpayers who have opted for QRMP Scheme||13th day of the month following the quarter||1st to 13th day in M 1 and M 2||25th day of the month following M 1||25th day of the month following M 2||
22nd or 24th day of the month following the quarter
Applicability of Late Fee
The late fee will be applicable on the delay in furnishing the quarterly GSTR-3B and GSTR 1 within due date, i.e., Rs. 25 per day (CGST/SGST) subject to a maximum late fee of ₹5,000(CGST/SGST)
However, it is clarified that no late fee is applicable for delay in payment of tax in the first two months of the quarter in form GST PMT-06.