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December 14, 2020

Know GST QRMP Scheme Migration, Payment process, Late fees and Interest Applicability

by CA Shivam Jaiswal in GST

Know GST QRMP Scheme Migration, Payment process, Late fees and Interest Applicability

Who can opt-in ?

  • All taxpayers with Aggregate Annual Turnover (AATO) up to 5 Crore are eligible to opt-in the Scheme
  • Taxpayer must have filed the last due return in FORM GSTR-3B, as on date of opting
  • QRMP Scheme can be opted GSTIN wise
  • New taxpayers and taxpayers opting out from composition scheme are eligible to opt-in the Scheme

For Taxpayers with annual turnover up to 5 Crore

  • File GST returns just once every quarter
  • Self assessment of ITC and Tax once every quarter
  • Enjoy Flexible Invoice Filing Facility (IFF)
  • Opt-In and Opt-Out of the Scheme easily
  • Pay monthly tax conveniently using fixed sum method or self-assessment method in first two months of a quarter

Invoice Filing Facility (IFF)

  • Invoices to be furnished in FORM GSTR-1 once in a quarter
  • Facility to furnish selected invoices (IFF) available on optional basis from 1 to 13 of the succeeding month in first two months of the quarter
  • Remaining invoices to be furnished along with FORM GSTR-1

The scheme will be effective from 1st January, 2021 and will be applicable for registered persons having turnover up to Rs. 5 Crore

Simplified payments procedures for taxpayers

1. Taxpayers need not file return in FORM GSTR-3B for month M1 (first month) and M2 (second month) of the quarter

2. For the months M1 and M2, payment can be made through challan in FORM PMT-06

3. Option to generate a pre-filed challon for a fixed amount based on the tax liability in the preceding month (100% of the net cash liability paid in the last month) if GSTR-3B filed monthly

OR

Option to generate a pre-filed challan for a fixed amount based on the average monthly tax liability in the preceding quarter (35% of the net cash liability paid in the lost quarter) if GSTR-3B filed quarterly

OR

Option to pay tax by self-assessment method (actual tax due after adjusting ITC)
4. Return in FORM GSTR-3B for the quarter will be required to be filed only in M3 of the quarter

Auto Migration of Taxpayers to QRMP Scheme (5th December, 2020)

  • In case where Aggregate Annual (AATO) is up to 5 Crore
  • GSTR-3B for October, 2020 filed on or before 30 November, 2020

Taxpayers having Aggregate Annual Turnover (AATO) up to 1.5 Crore and are filling GSTR-1 on monthly basis will not be automatically migrated and have to opt-in for the Scheme
Automatically migrated taxpayers can opt-out of the Scheme

Things to Know: Late Fees and Interest

  • No interest would be payable where the taxpayer discharged the tax liability using fixed sum method, for M1 & M2, and furnished FORM GSTR-3B, by the due date
  • No late fees payable for delay in payment of tax in M1 & M2
  • Late fees applicable only where GSTR-1 and / or GSTR-3B is furnished beyond the due date

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