Quarterly Returns & Monthly Payment System

Quarterly Returns & Monthly Payment System
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Last updated on May 28th, 2022 at 10:43 pm

Quarterly Returns & Monthly Payment System

Salient Features of QRMP Scheme

⇒ Taxpayers whose AATO < Rs. 5 crores in the preceding FY will be eligible to avail the QRMP Scheme.

⇒ It is not mandatory for all the GSTIN under the same PAN to avail of the QRMP scheme. QRMP Scheme is GSTIN wise, not PAN wise.

⇒ Under the QRMP scheme, registered persons will have the option to file either

  •  Option 1: Quarterly GSTR 1 & Quarterly GSTR 3B & Monthly Payments in Form GST PMT 06

OR


Let’s discuss both the options in detail

Option 1 – Taxpayers who opt for quarterly returns (GSTR 1 & GSTR 3B) under the QRMP scheme

Form GSTR 1

⇒ The due date of quarterly Form GSTR 1 will be the 13th day of the month succeeding the quarter.

⇒ Late fees for delay in filing Form GSTR 1 will be calculated as per section 47 of CGST Act, 2017.

  • In case of NIL return – Late fees will be Rs. 20 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to Rs 5,000.)
  • In case of other than NIL return – Late fees will be Rs. 50 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to Rs 5,000.)

⇒ There will be no interest liability if the FORM GSTR -1 is not furnished.

There is no provision to revise Form GSTR 1. If any amendments are required then that is to be done in the next quarter’s return.

Taxpayers can also avail the facility of furnishing Nil Form GSTR 1 via SMS.

Form GSTR 3B

The due date of quarterly Form GSTR 3B will be the 22nd or 24th day of the month succeeding the quarter. ( Depending upon the States or Union Territories)

Late fees for delay in filing Form GSTR  3B will be calculated as per section 47 of CGST Act, 2017.

  • In case of NIL return – Late fees will be Rs. 20 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to the max. Rs 5,000.)
  • In case of other than NIL return – Late fees will be Rs. 50 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to the max. Rs 5,000.)

Interest u/s 50 will be calculated @ 18% on net tax liability from the succeeding day of due date up to the date of payment.

There is no provision to revise Form GSTR 3B. If any amendments are required then that is to be done in the next quarter’s return.

Taxpayers can also avail the facility of furnishing Nil Form GSTR 3B via SMS.

Form GST PMT 06 

Tax needs to be deposited in FORM GST PMT-06. (While generating the challan, the reason “monthly payment for the quarterly taxpayer” should be selected.)

The due date for payment of tax for the first and the second month of the quarter in Form GST PMT-06 is the 25th day of the month succeeding such month.

Note Final payment of tax if any needs to be done while furnishing Form GSTR 3B for the quarter hence the due date for the tax payment will be the due date of Form GSTR 3B of the quarter. 

There will be no late fees if the FORM GST PMT-06 is furnished after the due date.

Tax for the M1 & M2 of the quarter will be calculated based on the method the taxpayer opts for.

(I)Fixed Sum Method – A pre-filled challan in Form GST PMT 06 will be generated for each of the 1st two months of the quarter equivalent to

  • 35% of the tax paid in cash in the preceding quarter (If you were filing quarterly GSTR 3B)

OR

  • 100% of the tax paid in cash in the preceding month of the quarter  (If you were filing monthly GSTR 3B)

(II)Self Assessment Method – Tax needs to be calculated by netting off the eligible ITC on inward supplies from the tax payable on outward supplies & inward supplies attracting RCM. Form GSTR 2B can be used to ascertain the ITC available every month.

(Note: Taxpayer has to use any of the above methods for the calculation of tax for the three months of one quarter, but will be allowed to change if the taxpayer intends to do so.)

⇒ Interest u/s 50

If the taxpayer opts for the Fixed Sum Method

Interest liability will be NIL if the taxpayer will pay an amount equivalent to or more than the pre-filled challan. Outstanding liability is to be discharged when Form GSTR 3B is furnished for the quarter. Note: If the taxpayer fails to furnish the return in Form GSTR 3B within the due date interest will be levied.

If the taxpayer fails to pay an amount equivalent to the pre-filled challan then interest u/s 50 will be calculated @ 18% on net tax liability from the succeeding day of the due date of Form GST PMT 06 up to the date of payment.

If the taxpayer opts for the Self Assessment Method

Interest u/s 50 will be calculated @ 18% on net tax liability from the succeeding day of the due date of Form GST PMT 06 up to the date of payment.

Invoice Furnishing Facility (IFF)

Invoice Furnishing Facility enables the taxpayer to provide details of  B2B outward supplies including credit notes and debit notes. IFF is similar to GSTR 1 and it will facilitate the credit to reflect in the FORM GSTR-2A and 2B of the recipient. IFF is an optional facility available for a period of 13 days starting from the 1st day of the succeeding month.

Option 2 – Taxpayers who opt for monthly returns (GSTR 1 & GSTR 3B)

Form GSTR 1

⇒ The due date of monthly Form GSTR 1 will be the 11th day of the month succeeding the month.

⇒ Late fees for delay in filing Form GSTR 1 will be calculated as per section 47 of CGST Act, 2017.

  • In case of NIL return – Late fees will be Rs. 20 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to max. Rs 5,000.)
  • In case of other than NIL return – Late fees will be Rs. 50 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to max. Rs 5,000.)

⇒ There will be no interest liability if the FORM GSTR -1 is not furnished.

There is no provision to revise Form GSTR 1. If any amendments are required then that is to be done in the next month’s return.

Taxpayers can also avail of the facility of furnishing Nil Form GSTR 1 via SMS.

Form GSTR 3B

The due date of monthly Form GSTR 3B will be the 20th day of the following month. succeeding the month. ( Irrespective of AATO & irrespective of the States or Union Territories)

Late fees for delay in filing Form GSTR  3B will be calculated as per section 47 of CGST Act, 2017.

  • In case of NIL return – Late fees will be Rs. 20 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to the max. Rs 5,000.)
  • In case of other than NIL return – Late fees will be Rs. 50 per day  (CGST+ SGST/UTGST)  up to the period of default. (Subject to the max. Rs 5,000.)

Interest is calculated at the rate of 18% on net tax liability for the period of default.

There is no provision to revise Form GSTR 3B. If any amendments are required then that is to be done in the next month’s return.

Taxpayers can also avail the facility of furnishing Nil Form GSTR 3B via SMS.


Author’s opinion

Quarterly taxpayers should opt for the self-assessment method of calculating tax which is more or less similar to the current method of calculating tax. Unless it is a specific requirement of the recipient one should not upload invoices using the IFF facility. As later on while furnishing quarterly GSTR 1 it would become a cumbersome task to make sure that double entry for the same invoices is not made.

QRMP scheme only benefits the taxpayers whose aggregate turnover was more than Rs. 1.5 Crores up to Rs. 5 Crores as it will give them the option to furnish quarterly returns against monthly as per the current system.

 

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Disclaimer: The above content is for general information purpose only and does not constitute professional advice. The author/ website will not be liable for any false, inaccurate, incomplete information. Any reliance you place on above content is therefore strictly at your risk.

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About CA Ankita Khetan 196 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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