QRMP Vs Monthly GST Return System

Last Updated On: Jan. 20, 2021, 10:05 p.m.
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QRMP Vs MONTHLY GST RETURN SYSTEM

The Central Board of Indirect Taxes & Customs (CBIC) introduced the 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.

 

Who is Eligible for QRMP Scheme?

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.

This article covers the comparision of the QRMP Scheme and the Monthly GST Return System which helps you to decide which one to opt for.

  Quarterly GST Return and Monthly Payment System (QRMP) Monthly GST Return and Monthly Payment System
System OF RETURN FILLING Quarterly GSTR1 (M3)
With Monthly IFF (optional)  (M1, M2)Quarterly GSTR3B  (M3)
With Monthly Challan PMT-6  (M1, M2)

MONTHLY  GSTR1

Monthly GSTR 3B

PROBLEM OF COUNTERPARTY 2A/2B & non-payment because not-showing in 2A/2B FILLING IFF ( OPTIONAL) ON MONTHLY BASIS. COUNTERPARTY CAN CLAIM ITC AS IT REFLECTED UNDER  2A/2B EARLIER GSTR 1 WAS QUARTERLY. SO PROBLEM WAS QUARTERLY DEALER WILL UPLOAD AFTER QUARTER END. AND COUNTER-PARTY CANNOT CLAIM ITC AS IT IS NOT SHOWING IN 2A/2B IN PARTICULAR MONTH. IF YOU ARE FILLING GSTR 1 ON MONTHLY BASIS,  COUNTER-PARTY CAN CLAIM ITC AS IT REFLECTED UNDER GSTR 2A/2B
DUE DATES FOR IFF / GSTR 1 – 13TH  OF NEXT MONTH/QUARTER, FOR PMT-06-25TH OF NEXT MONTH AND 3B  – 2/24TH of next quarter

MONTHLY  GSTR1 – 11TH

MONTHLY GSTR 3B  – 22TH& 24TH

INTEREST TAX REMAIN UNPAID AT THE END OF 3RD MONTH  ( ONLY IN CASE OF SELF ASSESSMENT  METHOD)  OR LATE FILING OF  PMT-6/3B FOR LATE FILLING OF 3B
LATE FEES NO LATE FEES FOR M1, M2 PMT-6 LATE FEES IN GSTR 3B AFTER 22TH /24TH
DANGER OF 36(4) 36(4) WILL APPLY ON MY QUARTER ENDING GSTR-3B ONLY (IN 3RD MONTH) 36(4) WILL APPLY ON EVERY MONTH GSTR-3B.
WORKLOAD FOR PROFESSIONAL DOUBLE AS EARLIER QUARTERLY SYSTEM SAME AS MONTHLY CLIENT HAVING MORE THAN 5 CRORES.

 

 

Know how to make monthly tax payments under the QRMP scheme:

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) or Self Assessment Method (SAM).

Fixed Sum Method (FSM):

The taxpayer must pay an amount of tax mentioned in a pre-filled challan in the form GST PMT-06 for an amount equal to 35% of the tax paid in cash.

S No Type of Taxpayer Tax to be paid
1 Who furnished GSTR-3B quarterly for the last quarter 35% of tax paid in cash in the preceding quarter
2 Who furnished GSTR-3B monthly during the last quarter 100% of tax paid in cash in the last month of the immediately preceding quarter

 

 

Example for understanding FSM:

Scenario 1: If GSTR-3B for January 2021 to March 2021 was filed on a quarterly basis

Tax paid in cash during Jan 2021 – Mar 2021 quarter A tax required to be paid in each of Apr 2021 and May 2021
CGST 10,000 CGST 3,500
SGST 10,000 SGST 3,500
IGST 20,000 IGST 7,000
Cess 3,000 Cess 1,050

 

 

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 2021 Tax required to be paid in each of Apr 2021 and May 2021
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 –

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.

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.

6. Due dates for filing quarterly GSTR-3B

 

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, Gujarat, 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
2 Jammu 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

 

 

Interest under QRMP scheme: 

The interest will be applicable as follows if the taxpayer opts for Fixed Sum Method (FSM):

S No Scenario Interest to be paid
1 Tax liability mentioned in the pre-filled form GST PMT-06 is paid by the 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 two 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 the first two 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)

 

 

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