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Payment Under QRMP Scheme

What is QRMP Scheme? 

Quarterly Return, Monthly Payment of Taxes (QRMP) Scheme is a scheme to simplify compliance for small taxpayers. Under this scheme, taxpayers having an aggregate turnover at PAN level up to Rs. 5 crore can opt for quarterly GSTR-1 and GSTR-3B filing. Payment can be made in the first two months by a simple challan in FORM GST PMT-06. For the ease of taxpayers, system has assigned quarterly frequency to small taxpayers automatically.

Payment Under QRMP Scheme

Notification No. 85/2020-Central Tax, dated 10/11/2020

The taxpayer has to deposit tax using form GST PMT-06 by the 25th of the following month, for the first and second months of the quarter. The taxpayers can pay their monthly tax liability either in the Fixed Sum Method (FSM), also popular as 35% challan method, or Self Assessment Method (SAM)

Fixed Sum Method (FSM) or 35% challan Method:

A facility is being made available on the portal for
generating a pre-filled challan in FORM GST PMT-06 for an amount equal to thirty five per cent. of the tax paid in cash in the preceding quarter where the return was furnished quarterly; or equal to the tax paid in cash in the last month of the immediately preceding quarter where the return was furnished monthly.

S. No.Type of TaxpayerTax to be paid
1Who furnished GSTR 3B quarterly for the last quarter35% of tax paid in cash in the preceding quarter
2Who furnished GSTR 3B monthly during the last quarter100% of tax paid in cash in the last month of the immediately preceding quarter
Payment Under QRMP Scheme
35% of tax paid in cashQRMP Scheme

For easy understanding, the same is explained by way of illustration in table below:

Scenario 1: If GSTR 3B for January 2021 to March 2021 was filled on 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

1000

CGST

350

SGST

1000

SGST

350

IGST

2000

IGST

700

Cess

300

Cess

105

Scenario 2: If GSTR-3 was filed on a monthly 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

3,000

CGST

3,000

SGST

3,000

SGST

3,000

IGST

5,000

IGST

5,000

Cess

1,000

Cess

1,000

Self Assessment Method (SAM):

This is the existing method where a taxpayer can pay the tax liability by considering the tax liability on inward and outward supplies and the input tax credit available. The taxpayer has to manually arrive at the tax liability for the month and has to pay the same in form GST PMT-06. For ascertaining the amount of ITC available for the month the taxpayer can use form GSTR-2B.

There are certain instances where no amount may be required to be deposited, such as –

  1. For the first month of the quarter – where the balance in the electronic cash/credit ledger is adequate for the tax liability of the said month OR where the tax liability is nil.
  2. For the second month of the quarter – where the balance in the electronic cash/credit ledger is adequate for the cumulative tax liability for the first and second months of the quarter OR where the tax liability is nil.

It is to be noted that a registered person will not be eligible for the said procedures unless he has furnished the return for the complete tax period preceding such month. A complete tax period is a tax period where the said person is registered from the first until the last day of the tax period.

It is clarified that in case the balance in the electronic cash ledger and/or electronic 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 ledger and/or electronic 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.

Refund Claim Under QRMP Scheme

Any claim of refund in respect of the amount deposited for the first two months of a quarter for payment of tax shall be permitted only after the return in FORM GSTR-3B for the said quarter has been furnished. Further, this deposit cannot be used by the taxpayer for any other purpose till the filing of return for the quarter.

Disclaimer:- “All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error.”

Dheeraj Kumar Singh

FAQ on Payment-QRMP Scheme

Self-assessment of liability means that you calculate your taxes for a month by ascertaining outward supplies made during the month and your available input tax credit. A challan may be generated for the amount of self-assessed liability. Please note that while generating this challan, please choose -> “Monthly Payment for Quarterly Returns” as the reason for making such payment.Accordion Sample Description
If you do not want to pay self-assessed tax, then you may simply deposit 35% of net cash paid by you in your last quarterly GSTR-3B filed or 100% of the net cash paid in your last monthly FORM GSTR-3B (whichever is applicable). Please note that while generating this challan, please choose -> “Monthly Payment for Quarterly Returns (35%)” as the reason for making such payment.
If your last FORM GSTR-3B filed was for a complete quarter, then the system will generate 35% of your last quarter’s net cash paid. However, if your last FORM GSTR-3B filed was for a one complete month, then the system will generate 100% of your last month’s net cash paid. You need not worry for this, as this is a completely system generated process.
Self-assessment can be done by all quarterly taxpayers. However, 35% challan will not be made available for the following persons: • New taxpayers, • Taxpayers who have opted out of the composition scheme, and • Those who have not filed their last FORM GSTR-3B.
No, you may choose self-assessment or 35% as per your own choice for any of the months.
No, there is no late fee for delayed payment of tax for any of the first two months.
No, Cash ledger refund under this scheme will only be allowed after the FORM GSTR-3B for that quarter has been filed. For example, if any amount has been deposited for the month of January, it will only be allowed for refund, once FORM GSTR-3B for the quarter ending March has been filed.
No, you cannot utilize these amounts for any other purpose, before filing FORM GSTR-3B for the quarter in which such deposits have been made. After filing FORM GSTR-3B, such cash may be used for other purposes also.
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