All You Need to Know About Quarterly Return Filing and Monthly Payment of Taxes (QRMP) Scheme under GST
Frequently asked questions on QRMP scheme
Q 1: What is QRMP
scheme? What are its benefit?
A: 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.
Q 2: Why have I been
assigned quarterly filing without opting for the same?
A: 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.
Q 3: Why have I been assigned quarterly frequency by system even
when my aggregate turnover
on PAN is greater than Rs. 5 crore?
A: 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.
Q 4: Why have I been assigned monthly frequency by system even
when my aggregate turnover
on PAN is upto Rs. 5 crore?
A: 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.
`
Q 5: I want to opt-out of QRMP scheme and become monthly filer.
Why the portal is not allowing
me to do same for the quarter Jan-Mar, 2021?
A: The last date to choose or change the filing frequency for the
quarter of January to March 2021 was
31st January,
2021. After 31st January
2021, the filing frequency cannot be changed for the quarter
January to March 2021.
However, for the quarter of April to June 2021, taxpayers
may change their filing frequency from
quarterly to monthly from 1st February, 2021 to 30th April, 2021.
It may be noted that profile selection is not a recurring
requirement every quarter. Once a frequency has
been opted for, it is applicable for all future periods unless
changed further.
Q 6: What is IFF? Is it another compliance requirement?
A: Invoice Furnishing Facility (IFF) is an optional facility
made available as per Rule-59(2) of the
CGST Rules, 2017. This is provided for those quarterly taxpayers
who want to pass on input tax credit
(ITC) to their recipients (buyers/customers) in first two
months of a quarter. Since IFF is an optional
facility, it poses no additional compliance burden. It is a
facility for those quarterly filers who intend to
pass ITC to their recipients in first two months of the quarter.
It may be noted that since IFF is an
optional facility,
IFF for a month will expire after the due date of 13th of next month, and cannot be
filed
after this date.
Q 7: Is filing IFF mandatorily or optional?
A: Invoice Furnishing Facility (IFF) is an optional facility
to those taxpayers who want to pass on input
tax credit (ITC) to their recipients (buyers/customers) in
first two months of a quarter. Those taxpayers
who do not have to pass credit to their recipients need not file
IFF in the first two months of the quarter.
They may declare their outward supplies in the quarterly FORM
GSTR-1. It may be noted that since
IFF is an optional facility, IFF for a month will expire
after the due date of 13th of next month, and
cannot be filed after this date.
Q 8: How do I make payment of my liability in first two months of
the quarter?
A: In first two months of the quarter, payment of liability can be
made by either of the following two
methods:
a. Fixed Sum Method: Portal will generate a pre-filled challan in
Form GST PMT-06. The
system generated pre-filled challan in this case is commonly also
known as 35% challan.
b. Self-Assessment Method: The actual tax due is to be paid
through challan, in Form GST
PMT-06, by considering the tax liability on inward and outward
supplies and the input tax
credit available for the period as per law.
The due date for making payment by challan is 25th of the next month.
Q 9: What is fixed sum method of payment?
A: In fixed sum method, the taxpayer is required to pay a
system generated challan in the first two
months of a quarter. The system generated pre-filled challan in
this case is commonly also known as
35% challan. If fixed sum method is opted for by the
taxpayer & there is no ITC to be passed in that
month, then except for paying system generated challan, no other
compliance requirement is there in the
first two months of the quarter.
Q 10: How is the 35% challan computed under the fixed sum method?
A: Under the fixed sum method, depending on the filing
frequency in the previous quarter, the 35%
challan is calculated by either of the following methods:
Method (a) :
An amount which is equivalent to the amount paid as tax from
electronic cash ledger in
their GSTR-3B return for the last month of the immediately
preceding quarter, where the
GSTR-3B return was furnished on monthly basis.
OR
Method (b) :
35% of amount paid as tax from electronic cash ledger in
their return for the preceding
quarter, where the GSTR-3B return was furnished on quarterly
basis; or
It may be noted that since QRMP scheme is introduced in January
2021, all taxpayers were monthly
filers in December 2020. Hence, the 35% challan will be populated
as per method (a) for the quarter
of January to March 2021 for quarterly filers.
Illustration:
Method (a) :
Taxpayer paid liability by cash amounting to Rs. 5500/- [IGST: Rs. 2,000/-, CGST: Rs.
1,000/-, SGST: Rs. 2,500/-] in
monthly GSTR-3B for December 2020. The 35% challan
generated as per the fixed sum method for January to
March 2021 quarter will be of Rs.
5,500/- with the
same head-wise break-up.
Method (b) :
Taxpayer paid liability by cash amounting to Rs. 7000/- [IGST: Rs. 1,000/-, CGST: Rs.
2,000/-, SGST: Rs. 4,000/-] in
quarterly GSTR-3B for January to March 2021. The 35%
challan generated as per the fixed sum method for April
to June 2021 quarter will be of Rs.
2,450/- [IGST: Rs. 350/-, CGST: Rs. 700/-, SGST: Rs. 1,400/-].
Q 11: How do I declare B2C supplies in IFF for first two month of
quarter if I have opted for
QRMP?
A: Supplies made to unregistered persons (also called B2C
supplies) are not required to be declared in
IFF. These may be declared in FORM GSTR-1 for the quarter.
Q 12: How will I reconcile the values declared in IFF & GSTR-1
with quarterly GSTR-3B?
A: Taxpayers will be provided with a draft GSTR-3B, which will
contain the details of the liability to
be paid by taxpayers in the quarterly GSTR-3B. This will be
prepared on the basis of the supplies
declared in FORM GSTR-1 for the quarter. It will also contain data
from the optional IFF, if any is filed
in either of the first two months of the quarter. The said system
computed values will also be autopopulated
in quarterly GSTR-3B.
Q 13: How do I claim ITC for the first two months of the quarter?
A: In first two months of the quarter, no declaration pertaining
to ITC is required to be made. The
available ITC for the entire quarter will be made available by the
system in quarterly FORM GSTR-2B.
This quarterly facility will be in addition to the FORM
GSTR-2B being made available on monthly
basis, which can still be used for doing self-assessment.
Q 14: How do I again become a Monthly filer?
A: Filing frequency either monthly or quarterly can be selected as
per timelines mentioned in below
table.
Kindly navigate : Services > Returns > Opt-in for Quarterly
Return
|
Effective Quarter (1) |
Period during which filing frequency can be selected (2) |
Last date for selecting the filing frequency (3) |
|
January–February– March |
1st November to 31st January |
31st January |
|
April – May – June |
1st February to 30th April |
30th April |
|
July – August – September |
1st May to 31st July |
31st July |
|
October – November –December |
1st August to 31st October |
31st October |
# For the quarter of January to March 2021, this option
was available
from 5th December 2020 to 31st January 2021.
File your Form GSTR-3B Return on Quarterly basis under QRMP Scheme. Watch video...
For more details regarding the QRMP scheme, kindly refer the
following Notifications & Circular:
Notification
No. 82 /2020 – Central Tax dated 10th Nov. 2020
Notification
No. 85 /2020 – Central Tax dated 10th Nov. 2020
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