Fixed sum method of QRMP Scheme

fixed sum method of qrmp scheme
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Fixed sum method of QRMP Scheme

Taxpayers who have opted for the QRMP scheme have to deposit the tax in Form GST PMT-06 for the first two months of the quarter. Tax for the first two months of the quarter will be calculated based on the method the taxpayer opts for.

Following are the two methods available

Self-Assessment Method: Taxpayer has to access the tax payable on outward supplies & inward supplies attracting RCM after netting off the eligible ITC on inward supplies on a self-assessment basis and pay the same in Form GST PMT-06. (This is similar to what taxpayers do while furnishing Form GSTR 3B).

⇒ Fixed Sum Method: Under this method, a pre-filled challan will be generated on the GST portal in Form GST PMT-06 based on the preceding period’s return in Form GSTR-3B.

Let’s understand the fixed sum method of the QRMP Scheme in detail

On what basis a pre-filled challan will be generated under the fixed sum method of the QRMP scheme?

A pre-filled challan in Form GST PMT 06 will be generated on Portal for each of the 1st two months of the quarter equivalent to

  • 35% of the tax paid using the electronic cash ledger for the immediately preceding quarter (If quarterly Form GSTR 3B is furnished)

OR

  • 100% of the tax paid using the electronic cash ledger for the immediately preceding month (If monthly GSTR 3B is furnished)
What is the due date for payment under the fixed sum method of the QRMP Scheme?

As per the fixed sum method of the QRMP Scheme, the due date for payment of tax for the first & the second month of the quarter in Form GST PMT-06 is the 25th day of the month succeeding such month. And the due date for the final payment of tax for the quarter will be the same as the due date of Form GSTR 3B of the quarter.

Period Due Date
1st Month of Quarter 25th day of 2nd Month of the Quarter
2nd Month of Quarter 25th day of 3rd Month of the Quarter
3rd Month of Quarter Due Date of GSTR-3B
 What will be the late fees under the fixed sum method of the QRMP Scheme?

As per the fixed sum method of the QRMP Scheme, there will be no late fees if payment in the FORM GST PMT-06 is done after the due date.

 What will be the interest for delayed payment under the fixed sum method of the QRMP Scheme?

Under the fixed sum method of the QRMP Scheme,

⇒ No interest – If the taxpayer makes the payment equivalent to or more than the pre-filled challan and discharges the remaining liability while furnishing Form GSTR 3B. (GSTR 3B should be filed within the due date.)

⇒ Interest @ 18% – If the taxpayer does not pay an amount equivalent to the pre-filled challan then interest u/s 50 will be calculated on net tax liability from the succeeding day of the due date of Form GST PMT 06 up to the date of payment.

 Why the pre-filled challan generated for the month of Jan & Feb 2021 is equivalent to 100% of the tax paid for the month of Dec 2020?

Before the introduction of the QRMP Scheme, it was mandatory for all the taxpayers to furnish Form GSTR 3B monthly only. So from the practical point of view, both the options i.e. 100% or 35% under the fixed sum method of the QRMP scheme shall be available from April 2021.

Pre-filled challan for the month of January 2021 & February 2021 is equivalent to 100% of tax paid in cash for the month of December 2020.

Note: For the month of Jan & Feb 2021, whether you select 100% or 35% the challan with the same amount shall be generated in Form GST PMT-06.

How to deal in the following situations under the fixed sum method of the QRMP Scheme?

If the tax liability is NIL for the current quarter or months of the quarter

If the tax liability is NIL for the first month or second month or first two months of the quarter then the taxpayer will not be required to make any payment even if the pre-filled challan in Form GST PMT-06 requires you to make payment.

If the cash paid for the tax liability was NIL for the preceding quarter or preceding month

If the cash paid for the tax liability was NIL for the preceding quarter or preceding month then the Portal advises you to make the payment on a self-assessment basis.

If there is adequate balance to discharge the liabilities 

If there is adequate balance in the electronic cash ledger or electronic credit ledger or both together to discharge the liability for the first month or second month or first two months of the quarter then the taxpayer will not be required to make any payment even if the pre-filled challan in Form GST PMT-06 requires you to make payment.

Note: Balance in the electronic cash ledger & electronic credit ledger should be adequate as on the due date of payment in Form GST PMT-06 of the first month or second month or first two months of the quarter.

Is it possible for a newly registered taxpayer to opt for the fixed sum method of the QRMP Scheme?

In my opinion, a newly registered taxpayer cannot opt for the fixed sum method of the QRMP scheme as there is no past record of tax payments in Form GSTR-3B and so it will not be possible for the Portal to ascertain the liability and generate a pre-filled challan.

If the taxpayer intends to opt for the QRMP scheme, then for the first two months of the quarter it will be mandatory to discharge the tax liability on a self-assessment basis.

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About CA Ankita Khetan 161 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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