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January 30, 2021

Opt for QRMP in GST? Know you need to pay Tax Monthly in Auto Generated Challan else pay Interest

by Rubina Dsouza in GST

Opt for QRMP in GST? Know you need to pay Tax Monthly in Auto Generated Challan else pay Interest

Introduction

Quarterly Returns with Monthly Payment (QRMP)” Scheme  is for small taxpayers to file their FORM GSTR-1 and FORM GSTR-3B returns on quarterly basis while paying their tax dues monthly through a simple challan. Although the filing of GSTR3B is made quarterly payment for the same is to be the every month by generating a payment challan for the first two months of the quarter. This means the taxpayer is required to pay tax during M1 and M2 also. In case of failure or delay I paying dur tax as per self-assessment or as per auto generated challan for M1and M2, the interest on the same will be payable.

This payment can either be made by self-assessment or pay 35% of cash liability paid in the FORM GSTR-3B for the last quarter (in case of where GSTR 3B was filed quarterly) or 100% of the cash liability paid in the FORM GSTR-3B for the last month (in case where FORM GSTR-3B was filed monthly) through a challan PMT-06. The due date for making payment under QRMP scheme is 25th of the next month.

No payment is required to be made under 2 circumstances for QRMP Scheme in the first  two months,

  1. If your aggregate balance in your electronic cash ledger and electronic credit ledger is greater than liability for that month.
  2. You have No or Nil liability for that month.

Auto Challan Generation and Interest Liability if Failed to Pay on time

Will the Buyer of QRMP get ITC each month if the taxpayer files R1 at quarter end, instead of uploading invoices monthly thru IFF? and Will there be waiver of Interest in case taxpayer pays tax in Quarterly 3B

The CBIC in a Tweet responded to the above Question

The credit will be reflected in GSTR2B of the buyer for M1 and M2 of the quarter, if the supplier, filing quarterly returns, uploads details of the invoices through optional IFF for the said months

However, if the supplier furnishes details of the invoices only in his quarterly GSTR-1, the same will be reflected in GSTR 2B of the buyer for M3 of the quarter.

The taxpayer is required to pay tax during M1 and M2 also. In case of failure or delay in paying due tax as per self assessment or as per auto- generated challan for M1 and M2, the interest on the same will be payable.

Due Date to Opt-out in QRMP Scheme

The GST portal has by default opted in for QRMP Scheme the Due date to Opt-out and choose the monthly Scheme is 31st Jan 2021 for Quarter 4 ( Jan to March 2021).

Applicable return due dates

  • In case you Opt-out of QRMP Scheme and choose Monthly Scheme
Form TypeMonth1Month2Month3
GSTR-111/02/202111/03/202111/04/2021
GSTR-3B22/02/202122/03/202122/04/2021
  • In case you don’t Opt-out of QRMP Scheme before 31st Jan 2021 for Q4 (Jan to March) then the return filing due dates will be as follows
Form TypeMonth1Month2Month3
GSTR-1/IFF13/02/2021 (Optional)13/03/2021 (Optional)13/04/2021
GSTR-3BNANA22/04/2021

Step Wise Process to Opt-in or Opt-out of QRMP Scheme in GST

You can to Opt in or Opt-out of QRMP Scheme by following just the 5 steps given below

  1. Step 1- Login to https://www.gst.gov.in/ and enter the login credentials

2. Step 2- Select the Service Tab

3) Step 3- Select Returns Tab and click on the option of Opt-in for Quarterly Returns

4) Step-4 Click on the Search Tab

5) Step-5 – To Opt-out of  QRMP Scheme Select Monthly  option in the frequency column, click on the SAVE Tab and then click on Continue to Return Dashboard

If you do not opt-out of the QRMP Scheme before 31st Jan 2021 it will be by default selected as quarterly under the Selected Frequency column and the due dates for filing GSTR1 will be 13th of every following month and that of GSTR3B will be 22/04/2021 for Jan to March quarter.

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