Latest GST Quarterly Return Monthly Payment Scheme (QRMP)
At its 42nd meeting held on 05.10.2020, the GST Council suggested that a registered person with a gross turnover of up to five (5) crore would be authorized to make a return on a quarterly basis, along with monthly tax payment, effective from 01.01.2021.
Summary of Quarterly Return Filing & Monthly Payment of Taxes (QRMP) Scheme
Effective Date – The scheme will be introduced with effect from 01 January 2021.
Eligible to apply for the QRMP Scheme:
- Taxpayers with a gross turnover of up to Five Crore Rupees in the previous financial year.
- The proposed scheme will be effective from 1 January 2021. The GSTN framework will itself measure the gross yearly revenue of the taxpayer
- For the purposes of notification No. 84/2020-Central Tax, dated 10.11.2020, a registered person who is required to make a return in FORM GSTR-3B and who has a cumulative turnover of up to 5 crore ropes in the previous financial year is qualified for the QRMP scheme.
Ineligibility for the QRMP Scheme:
In the event that the total turnover exceeds 5 crore ropes in any quarter of the current financial year the registered person shall not be liable for the scheme in the next quarter.
When a person may opt for the scheme:
- This facility can be used throughout the year, in any quarter.
- Open The QRMP Scheme option, once activated, will continue until RP revises the option or its AATO crosses Rs 5 Cr.
- RPs migrated by default can choose to remain out of the scheme by exercising their option from 5th, 2020 till 31st Jan. 2021.
- The RPs opting for the scheme can avail the facility of Invoice Furnishing Facility (IFF) so that the outward supplies to registered person is reflected in their Form GSTR 2A & 2B.
Exercise Option- When a person can opt for the scheme:
- The facility can be used during the year, across every quarter of the year.
- QRMP Scheme option, once exercised, will continue until RP revises the option or its AATO reaches Rs 5 Cr.
- RPs that have been migrated by default can choose to remain outside the scheme by using their option from 5 January 2020 to 31 January 2021.
- Please be aware: RPs opting for the scheme may make use of the Invoice Furnish Service (IFF) facility so that the outward supplies to the registered person are expressed in their Forms GSTR 2A & 2B.
- Taxpayers may opt, on any quarter during the first day of the second month or the corresponding quarter, for the last day of the first month of the quarter.
- The scheme is not expected to be chosen individually for each quarter. Once it has been exercised, it will be valid for potential tax periods
- Please note that in order to exercise that option, the registered person must have given the last return as required on the date of exercise of that choice.
- Registered persons are not expected to exercise this option on a quarterly basis.
- The taxpayer must have given the last return as required on the date of the exercise of that option.
The choice used once exercised
- Taxpayers are not required to exercise the option on a quarterly basis, have a return unless they amend the option.
Period of time
- For the first quarter of the scheme, from January 2021 to March 2021, GSTR-3B filed for the month of October 2020 by 30 November 2020.
- Taxpayers who do not file a GSTR-3B return for October 2020 by 30 November 2020 shall not be transferred to the common portal.
Opt-Out of the turnover scheme crosses Rs 5 Crores:
- In the event that the overall turnover exceeds 5 crore ropes in any quarter of the current financial year the registered individual shall not be liable for the scheme from the next quarter.
- Such registered individuals, whose cumulative turnover exceeds 5 crore ropes over a quarter of the current financial year shall opt for the provision of returns on a monthly basis, online, on the national portal, from the next quarter.
Question: Will a registered person go back to the prospect of submitting a monthly return when he has chosen for the QRMP scheme?
Ans: Yes, a registered person can move back to the option of submitting a monthly return when he has opted for the QRMP scheme.
The provision to opt-out of the scheme for a quarter will be accessible from the first day of the second month of the previous quarter to the last day of the first month of the quarter.
Quarterly furnishing of outward supply information with the Invoice Furnished Facility
- Registered persons selected for the scheme will be expected to include the outward supply information in the form of GSTR-1 on a quarterly.
- The Invoice furnishing facility (‘IFF’) was developed for the reporting of invoices for the details of the supply rendered to registered persons for the very first time.
- Two months in a quarter. This IFF facility is discretionary
- The facility for the furnishing of invoice information in the Invoice furnishing facility( IFF) has been established in such a manner that
- The system for the furnishing of invoice information in the IFF has been given in such a way that Such supplies shall be properly reflected in the form GSTR-2A and the form GSTR-2B of the recipient concerned.
Tax Payment under the Quarterly Return Monthly Payment Scheme (QRMP) Scheme :
|Kind of Registered persons
|Monthly Tax payment
|Class of Returns
|Sales of up to INR 1.5 Crore and have filed GSTR-1 on a QTRly basis in the Present Financial Year
|Fixed sum method
|Sales of more than INR 1.5 Crore and up to INR Five crore in the last Financial Year
|Deposit in PMT — 06 by
25th day of the month
next such month
|Sales of up to INR 1.5 Crore and have filed GSTR-1 on monthly basis in the Present Financial Year
|Pay tax due in each of
the first two months of
- RPs need to pay the tax due in each of the first 2 months (by the 25th of next month) in Qtr, by choosing “Monthly payment for quarterly taxpayers” as the explanation for generating Challan.
- RPs can use either the Fixed Sum Method (Pre-filled Challan) or the Self-Assessment Method (Real Tax Duty) for the monthly payment of tax for the first two months after the ITC has been adjusted.
- No payment is required for a month when there is no tax liability.
- The tax deposited for the first 02 months may be used to change the qtr liability. In the form, GSTR-3B and will not be used for any other reason until the return for the qtr has been submitted.
- Press here for the Notification and CBIC Circular description.
Notes: Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March 2020- Clarification on applicability on QR Code Notification 14/2020
Question: How and in what manner the payment of tax Monthly is to be made under the Quarterly Return Monthly Payment Scheme (QRMP) Scheme?
Ans: The registered person under the QRMP scheme will be allowed to pay the tax due to each of the first two months of the quarter by depositing the due sum in FORM GST PMT-06 on the twenty-fifth day of the month following that month.
When generating the villain, taxpayers should choose “Monthly payment for quarterly taxpayers” as the explanation for generating the villain. Process for calculating the monthly payment of the tax the taxpayer is eligible to use one of the following 2 choices given below for the monthly payment of the tax in the first two months:
|1. Fixed sum method
|2 Self-assessment System
|· A taxpayer who’s already made a quarterly return in the preceding quarter may decide to pay 35 percent of the tax paid in cash in the previous quarter.
· An share of thirty-five percent of the tax paid in cash in the previous quarter where the return was filed quarterly or equal to the tax paid in cash in the last month preceding the quarter where the return was submitted monthly.
· The facility will be made accessible on the portal to generate a before the callan in the form of GST PMT-06.
· Non-availability of monthly tax payment facility: monthly tax payment by this form will not be applicable to registered persons who did not provide the return for the entire tax immediately prior that month. The full tax period shall be the tax period in which the person is registered on the first day of the tax period to the last day of the taxable period.
|· The registered individual may pay the tax due by taking into account the tax liability for inward and outward supplies and the tax credit available.
· In order to enable the determination of the available ITC for a month, a self-produced input tax credit estimate has been made accessible for each month in FORM GSTR-2B.
Question: what is the Applicability of late fees
Ans: Applicability of late fees
- Late fees shall apply in respect of delays in the furnishing of returns/details of outward delivery as provided for in Section 47 of the CGST Act. Late fees will refer to delays in the furnishing of the said quarterly return/details of the outward supply.
- It is explained that there is no late payment penalty for late payment of the tax in the first two months of the year.
Question: What are the conditions for setting the annual turnover rate – PAN or GSTIN?
Ans: The option to make use of the QRMP Scheme is GSTIN wise and therefore separate persons as specified in Section 25 of the CGST Act (different GSTINs on the same PAN) have the option to make use of the QRMP Scheme for one or more GTINs.
In other words, some GSTINs for that PAN may opt for the QRMP Scheme and the remaining GSTINs may not opt for the Scheme.
A new scheme for quarterly returns with monthly payments [QRMP] will be implemented as from 1 January 2021 on the recommendation of the GST Council.
Under this scheme, taxpayers whose Aggregate Annual Turnover (AATO) is up to Rs. 5 Cr in the past financial year and current financial year will have the option of filing their return/statement-FORM GSTR-1 and FORM GSTR-3B on a quarterly basis with a clear payment call for the first two months of the year.
The requirements and advantages of this scheme are set out in the attached document. Link – A new scheme for quarterly returns with monthly payments [QRMP]
As per the details available to us, your AATO is up to Rs. 5 Cr in the previous financial year. In order to encourage a seamless transition to the new system, you have defaulted to a monthly frequency under the new scheme.
If your AATO has not reached Rs. 5 Cr in the current year and you would like to opt-in for a new scheme, you can do so by logging in to the GST Portal and navigating to Services > Returns > Opt-in for quarterly returns.
Question: What is Invoice Furniture Facility (IFF)?
Ans: Invoice Furnishing Facility (IFF) is a service offered to quarterly taxpayers to submit their outward supply information within first 2 months of the quarter (M1 and M2). This facility will be equivalent to FORM GSTR-1, but will enable only the below tables to be submitted:
- 4A, 4B, 4C, 6B, 6C – B2B
- 9B – Notes on credit/debit (Registered)
- 9A – Amended invoices for B2B
- 9C – Amended notes on credit/debit (Registered)
Question: Do I have to compulsively file my invoices in M1 and M2 for each quarter of the Invoice Furnishing Facility?
Ans: No, Invoice Furnishing Facility is an optional facility for quarterly taxpayers only.
Question: Can I file my invoices late just after the 13th of the month?
Ans: No, the possibility of Invoice Furnishing Facility uploading information will end after the 13th of the month. Any remaining invoices may be filed using the Invoice Furnishing Facility of the following month or in the quarterly form GSTR-1.
Question: Will my recipient see these invoices in his GSTR-2A/2B form?
Ans: Yes, all invoices submitted by you via Invoice Furnishing Facility will be submitted in the form GSTR-2A and GSTR-2B of the recipient.
Question: Is there really any late filing fee applicable to IFF late filing?
Ans: No, there’ll be no late fee for late filing of IFF, as the taxpayer will not be permitted to file IFF after the completion date.
Question: What are the basic requirements for IFF filing?
Ans: The pre-requisites for IFF filing are:
- The taxpayer is expected to be a registered taxpayer on a regular basis or to have opted in or opted out of the composition.
- The taxpayer should be provided with a valid user ID and password.
- The taxpayer should have opted to file GSTR-1 on a quarterly basis.
Question: How often can I create a synopsis of the features using the GENERATE IFF SUMMARY button?
Ans: The review is generated automatically by the GST Portal at a duration of <30 minutes>. If you want to see the description instantly, after adding invoices, you can also generate the description by clicking the GENERATE IFF SUMMARY button.
Even so, the summary can only be generated at a time interval of 10 minutes. If you try to generate an overview earlier than 10 minutes, you will notice an error message at the top of the page.
Question: Do I have an option to view the information that I have entered in the IFF form before submitting the form?
Ans: Yes, you can review the PREVIEW Invoice Furnishing Facility button available at the bottom of the GSTR-1/ Invoice Furnishing Facility page to view the details that you entered in the Invoice Furnishing Facility form.
Question: Where can I see the IFF forms submitted?
Ans: You can display the filed IFF forms under the ‘View Filed Returns’ and ‘Track Return Status’ options.
Acknowledge and Submit IFF
Question: I have filled out the information in all the appropriate IFF tables for M1, how do I submit the details?
Ans: You can submit the details by clicking the SUBMIT box at the bottom of the GSTR-1/IFF page.
Question: I have filed my GSTR-1/IFF for a month, can I introduce modifications to the form before IFF for that month?
Ans: The submit button will freeze invoices uploaded to the GSTR-1/IFF for that particular month. You will not be able to submit any additional invoices for that month. If you have missed adding any invoices, you can upload those invoices over the next month.
IFF file / GSTR-1
Question: Is filing of the IFF file / GSTR-1 form different from the filing of GSTR-1 or any other return?
Ans: No, the filing of the IFF file / GSTR-1 form is similar to the filing of any other return form.
Question: Which call options can I use for the IFF file / GSTR-1?
Ans: You can use either Submit with DSC or File with Electronic verification code options to file the IFF file / GSTR-1 form.
Question: Who could use the Invoice Furnishings Facility?
Ans: Small taxpayers who file their GSTR-1 returns on a quarterly basis may use the Invoice Furnishing Facility.
It is important to remember that if a taxpayer does not choose to upload invoice details through the IFF, he/she must upload all invoice details to the GSTR-1 return for the 3 months of the quarter.
Question: What particulars are to be given in the Invoice Furnishings Facility?
Ans: The details mentioned are to be provided by small taxpayers if they opt for the Invoice Furnishing Facility:
- B2B invoice details of sales transactions (both inter-state and intra-state).
- Debit and credit notes on B2B invoices issued during the month.
Question: How to use the Invoice Furnishings Facility?
Ans: Since the Invoice Furnishings Facility is optional for quarterly GSTR-1 filers, the GST platform may provide an opt-in timeframe for the same.
Once the small taxpayers opt for it, the GST portal would provide these quarterly filers with this facility for the first 2 months of the quarter. Invoices should be submitted to IFF from the 1st to the 13th of the following month.
So for now, the IFF format has still not been notified and we can anticipate notification of the format and way in which the invoice data will be uploaded soon. There has also been no clarification as to whether or not an offline tool will be given.