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QRMP – Quarterly Return Filing and Monthly Payment of Taxes Scheme under GST

The Central Board of Indirect Taxes & Customs (CBIC) introduced Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under Goods and Services Tax (GST) to help small taxpayers whose turnover is less than Rs.5 crores. The QRMP scheme allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month.

This scheme would bring in a big relief to those taxpayers who may have been losing their eligible credits due to compliance of Rule 36(4) where their suppliers are filing GSTR 1 quarterly. Now, with the introduction of QRMP scheme, Invoice Furnishing Facility (IFF) will help the taxpayers to opt for quarterly filing of returns (GSTR-1 as well as GSTR-3B) and simultaneously upload the invoices on a monthly basis which will be duly reflected in the GSTR-2A and GSTR-2B of the customer based on which the customer can avail the input tax credit timely.

Law references

The CBIC on 10th of November, 2020 issued following in respect of QRMP scheme:

S. No.Law ReferencesPurpose
1Notification No. 81/2020-Central Tax, dated 10-11-2020Notifies amendment carried out in sub-section (1), (2) and (7) of section 39 of the CGST Act vide Finance (no.) Act, 2019
2Notification No. 82/2020-Central Tax, dated 10-11-2020Makes the thirteenth amendment (2020)to the CGST Rules2017
3Notification No. 84/2020-Central Tax, dated 10-11-2020Notifies class of persons under proviso to section 39(1) of the CGST Act.
4Notification No. 85/2020-Central Tax, dated 10-11-2020Notifies special Procedure for making payment of tal Liability in the first two month of a quarter.
5Circular No. 143/13/2020-GST dated 10-11-2020Explain the scheme in simple terms.

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 month by a simple challan in FORM GST PMT – 06. For the ease of taxpayers, System has assigned quarterly frequency to small taxpayers automatically. 

Who is eligible for the QRMP scheme?

In terms of notification No. 84/2020-Central Tax, dated 10/11/2020.

A registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. Further, in case the aggregate turnover exceeds five crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the scheme from the next quarter.

It is clarified that the aggregate annual turnover for the preceding financial year shall be calculated in the common portal taking into account the details furnished in the returns by the taxpayer for the tax periods in the preceding financial year.

The quarterly GSTR-3B filing option will be available from 1st January 2021 onwards. It is clarified that this scheme is optional and can be availed based on GSTIN.

How to exercise Option for QRMP Scheme?

Facility to avail the scheme on the common portal would be available throughout the year. In term of rule 61A of the Central Goods and services Tax Rules, 2017 (hereinafter referred as CGST Rules), A registered person who intends to file his GSTR-3B quarterly should indicate the same on GST portal, from the 1st of the second month of the preceding quarter until the last day of the first month of the quarter for which such option is being exercised.

For Example: If Priyank wishes to file quarterly returns for the quarter of April-June 2021, he should opt for quarterly filing on the common GST portal between 1st Feb. 2021 and 30th April 2021. 

Kindly navigate :- Login > Services > Returns > Opt-in for Quarterly Return > Select Financial Year > Click on Search 

Once the registered person has opted for quarterly filing, he will have to continue to furnish his return every quarter for all future tax periods, except in the following situations:

Once the registered person has opted for quarterly filing, he will have to continue to furnish his return every quarter for all future tax periods, except in the following situations:

  1. If the taxpayer becomes ineligible for furnishing a quarterly return (for example, if the aggregate turnover crosses Rs.5 crore during a quarter, then from the next quarter he will not be able to file quarterly returns). If the taxpayer opts to furnish GSTR-3B on a monthly basis.
  2. A registered person will not be eligible to opt for furnishing quarterly returns if the last return, which was due on the date of exercising such an option has not been furnished.

For example:  If the person is opting for quarterly GSTR-3B filing on 1st December 2020, he will need to furnish his GSTR-3B return for October 2020, which would have been the last return due on the date of exercising the quarterly filing option.

GSTIN wise option is available:_

The option to avail the QRMP Scheme is GSTIN wise and therefore, distinct persons as defined in Section 25 of CGST Act (different GSTINs on same PAN) have the option to avail the QRMP scheme for one or more GSTINs. In other words, some GSTINs for that PAN can opt for the QRMP scheme and remaining GSTINs may not opt the Scheme.

Timeline for exercising option under QRMP Scheme during FY 2021-22

S. No.Period – QuarterTimeline
1.April – June 1st Feb. 2021 to 30th April 2021
2.July – September1st May 2021 to 31st July 2021
3.October -December1st Aug. 2021 to 31st oct. 2021
4.January – March1st Nov. 2021 to 31st Jan. 2022

How to submit details of outward supplies under QRMP ?

The registered persons opting for the Scheme would be required to furnish the details of outward supply in Form GSTR-1 quarterly as per rule 59 of the CGST Rule.

For each of the first and second months of a quarter, such a registered person will have the facility (Invoice Furnishing Facility – 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 facility of furnishing details of invoice 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.

It is re-iterated that said facility is not mandatory and is only an optional facility made available to registered persons under the QRMP Scheme.

The details of invoice 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 invoices furnished using IFF for each of the first two months and the details of invoices furnished in FROM GSTR-1 for the quarter. At his option, a registered person may choose to furnish the details of outward supply made during a quarter in FROM GSTR-1 only, without using the IFF. 

           One should keep the following points in mind before utilizing the IFF:

    • The IFF can be utilized only for the first two months of a quarter.
    • The invoices relating to the last month of a quarter are to be uploaded in the GSTR-1 return only.
    • There is no requirement to upload invoices in GSTR-1 if the same has been uploaded in the IFF.
    • The taxpayer has to submit the B2B invoice details of sale transactions (both inter-state and intra-state) along with debit and credit notes of the B2B invoices issued during the month.
    • The total net value of invoices that can be uploaded is restricted to Rs.50 lakh per month.
    • The details submitted in IFF will be reflected in the GSTR-2A, GSTR-2B, GSTR-4A or GSTR-6A of the recipients as the case may be.
    • The Invoice Furnishing Facility will come into effect from 01.01.2021.

Payments under the 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 amount in FORM GST PMT-06, by the 25th day of the succeeding such month. 

Following two option are available to the taxpayers who are under QRMP Scheme for tax payment for first 02 months of quarter:

  1. Fixed Sum Method : Portal can be generate a pre-filled challan in FORM GST PMT-06 based on his past record. 
  •  35% of amount paid as tax from electronic cash ledger in their preceding quarter GSTR 3B return, if it was furnished on           quarterly basis
  • 100% of the amount paid as tax from electronic cash ledger in their GSTR3B return for the last month of the immediately preceding quarter, if it was furnished on monthly basis.

     2. Self-Assessment Method: The tax due to be paid on actual supplies after deducting the input tax credit available. 

The taxpayers are not required to deposit any amount for the first 02 months of a quarter, if 

  • Balance in Electronic cash ledger / Electronic credit ledger is sufficient for tax due for the first/second month of the quarter; or 
  • There is NIL tax liability 

Due dates for filing GSTR-3B under QRMP Scheme

The due dates filing quarterly GSTR-3B has been notified as follows:

S. No.GST Registration in states and union Territories Due Date
1.Chhattisgarh, Madhya Pradesh, Gujrat, Dadra and Nagar Haveli, Daman and Diu, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh 22nd of the month succeeding such quarter
2Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana , Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Mizoram, Manipur, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha 24th of the month succeeding such quarter

Late fee under QRMP scheme

Late fee is applicable for delay in furnishing of return/details of outward supply as per the provision of section 47 of the CGST Act. as per Scheme, the requirement to furnish the return under the proviso to sun-section (1) of Section 39 of CGST Act is quarterly. subject to maximum late fees of Rs.5000: 

Name of the ActLate fee for every day of delayLate fee for every day of delay (in case of ‘Nil’ tax liability)
CGST Act Rs. 25RS. 10
SGST ActRs. 25Rs. 10
Total Rs. 50Rs. 20

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.

Interest under QRMP scheme

  1. The interest will be applicable as follows if the taxpayer opts for Fixed Sum Method (FSM) or popularly know as the 35% challan Method:_
S. No.ScenarioInterest to be paid
1.Tax liability mentioned in pre-filled FORM GST PMT-06 is paid by 25th of the following month Nil
2.tax liability mentioned in pre-filled Form GST PMT-06 is not paid by 25th of the following month 18% of the tax liability (from 26th of the following month till the date of payment)
3.The final tax liability for the first two months is less than or equal to the amount paid through pre-filled FORM GST PMT-06 Nil
4.The final tax liability for the first 02 months is higher than the tax amount paid through pre-filled FORM GST PMT-06, and such excess liability has been paid within quarterly GSTR-3B due date Nil
5.The final tax liability for first 02 months is higher than the tax amount paid through pre-filled FORM GST PMT-06, and such excess liability has not been paid within quarterly GSTR-3B due date. 18% of the tax liability (from GSTR 3B due date till the date of payment)

   2.  The interest will be applicable as follows if the taxpayer opts for Self Assessment Method (SAM):

        The taxpayer has to pay interest @18% on the net tax liability which remains unpaid or paid beyond the due date for the first two months of the quarte.

It is important to note that the taxpayer has to pay interest @18% if there is any late payment of tax in the third month of a quarter. This is applicable irrespective of Fixed Sum Method (FSM), popular as 35% challan method, or Self Assessment Method (SAM).

Interest payable, if any, shall be paid through FORM GSTR-3B.

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 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.
Taxpayers eligible for the simplified compliance scheme were assigned quarterly frequency by the GST system. All taxpayers were informed regarding the frequency assigned to them by e-mail and SMS.
For the purpose of determining the eligibility for QRMP, the turnover was determined on the basis of the values declared by taxpayers in Table-3.1 of GSTR-3B (except inward supplies attracting reverse charge) for the Financial Year 2019-20. If a component of the turnover, like exempted or non-GST turnover, was not declared by a taxpayer in GSTR-3B or was declared in next financial year, then the turnover computed by the system for such taxpayers could be less than Rs. 5 crore. Such taxpayers may have been assigned to QRMP on the basis of values declared by them in GSTR-3B. Such taxpayers are advised to opt-out of scheme for quarter Apr-Jun’21 by 30th April 2021.
At the time of assigning the frequency by the system, system considered the aggregate turnover of the taxpayer and the filing status of FORM GSTR-3B for the month of October 2020. If the said GSTR- 3B was not filed till 30th November 2020, the taxpayer were assigned to monthly frequency. The system allows the taxpayer to opt for QRMP scheme only if the last applicable return in FORM GSTR-3B, whose due date is over, is filed. Illustration : If the taxpayer is trying to opt for QRMP Scheme on 25th Feb’21, from Quarter Apr-Jun’21 onwards then it will be allowed only if the return in form GSTR-3B is filed for the month Jan’21. If the taxpayer is trying to opt for QRMP Scheme on 19th Feb’21, from Quarter Apr-Jun’21 onwards then it will be allowed only if the return in form GSTR-3B is filed for the month Dec’20.
No. This scheme is available only to those who are liable to file FORM GSTR-1 and FORM GSTR-3B returns.
All taxpayers whose aggregate turnover is up to Rs. 5 Crore in the current and preceding financial year and have filed their last due GSTR-3B return are eligible for this scheme.
Taxpayers can opt in (avail) the scheme and opt out (exit) if they don’t wish to continue quarterly filing by navigating to Login-> Services -> Returns -> Opt-in for quarterly return
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Priyank nema
Priyank nema
6 months ago

Super explain regarding QRMP scheme 👌

Anonymous
Anonymous
6 months ago

good

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[…] choose to upload their Business-to-business (B2B) invoices every month, currently under the QRMP scheme only. It is governed by Rule 59(2) of the CGST Rules, available to regular taxpayers having an […]

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[…] 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. […]