Quarterly Returns & Monthly Payment System

Quarterly Returns & Monthly Payment System
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Quarterly Returns & Monthly Payment System

Salient Features of QRMP Scheme

⇒ Registered persons whose annual aggregate turnover is up to Rs. 5 crores in the preceding financial year 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 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 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: 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. 

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

Tax for the first two months of the quarter needs to 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

  • There will be no interest liability provided 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.)
  • If the taxpayer does not 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 will enable the taxpayer to update the details of outward supplies made to a registered person ( i.e. only B2B invoices, credit notes, debit notes). This will facilitate the reflection of details of such supplies in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.

⇒  IFF is not mandatory for the registered persons under the QRMP Scheme. It is an optional facility that will be available from the 1st day to the 13th day of the month succeeding such month.

Details of outward supplies exceeding the value of fifty lakh rupees per month will not be permitted under the IFF.

Details of outward supplies are not required to be furnished again in Form GSTR -1.

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 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 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 upto 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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About CA Ankita Khetan 165 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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