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What are the Steps to Make Tax Payments Under the QRMP Scheme

August 20, 2021

Steps To Make Tax Payment Under QRMP Scheme

What is QRMP Scheme?

QRMP scheme under GST is Quarterly Return Monthly Payment, introduced by CBIC for the small scale business entities having an aggregate turnover of up to Rs.5 crore to file returns on a quarterly basis additionally to monthly tax payment. The taxpayer is required to file only 8 returns in a year compared to 16 returns earlier. 

Under this scheme, an Invoice Furnishing Facility is also at the taxpayer’s disposal, who upload sales invoices every month on the GST portal even if the GSTR 2A  is to be filed quarterly. That invoices would be shown in the GSTR 2A  and GSTR2B of their GST registered buyers, who use ITC on a timely basis. This averts their customers from losing eligible ITC and thereby losing customers.


What are the due dates for payments under the QRMP Scheme?

All registered taxpayers of QRMP scheme under GST have to pay the due tax in each of the first months of the quarter by the 25th of the next month in that quarter. A registered taxpayer has to deposit the tax by means of the GST PMT 06 Form. The tax payment could be made either through a fixed sum method or the self-assessment method. The payment of tax for the third month is due by the 22nd or 24th of the month following the quarter and has to be paid together with the GSTR 3B filing.


What are the methods of making quarterly payments under the QRMP Scheme?

Fixed sum method and self-assessment method are the two methods that a registered person could make payment of QRMP Scheme under GST.


Fixed Sum Method: According to Fixed Sum Method, a taxpayer has to pay tax amount as shown in the pre-filled challan (based on earlier tax payment) in GST PMT-06 Form, for an amount same as 35% of the paid tax in cash.

Self-assessment method: In accordance with the self-assessment method, a registered taxpayer should pay the tax on outward supplies after taking into account ITC at disposal. In such a scenario, a taxpayer could manually determine the tax liability and deposit it in GST PMT 06 Form. The taxpayer could refer to the GSTR 2B Form to get the ITC amount at their disposal.

The amount deposited by the registered taxpayer in the first two months of the quarter would be debited for the sake of redeeming the liability in their quarter’s GSTR 3B Form. The remaining amount after filing that form could either be claimed as a refund or utilized for other purposes in the following quarter.

In case of the registration cancellation of a taxpayer in the course of the first two months of the quarter, he is needed to provide his GSTR 3B form for that relevant tax period.


Interest applicability under QRMP Scheme 

Interest applicability of QRMP Scheme under GST  in case of :

  • Unless payment is made within the due date, interest would be applicable from the due date of submitting the GST PMT 06 Form till the date of payment.
  • In case of return in GSTR 3B Form is not filed before the due date interest applicable in accordance with the provisions of section 50 of the Central Goods and Services (CGST) for the tax liability, net ITC.

For example,

  • The due tax in the initial month is not paid on or before the 25th of the next month.
  • The due tax in the second month is not paid on or before the 25thb of the next month.
  • The total tax liability for the quarter is given in GSTR 3B Form, which is not filed on or before the due date.

In such a scenario, the interest could be imposed separately for the number of days delayed in the first month, second month, and in filling quarter GSTR3B.

Interest rate: It would be 18% of the net tax liability that is unpaid or paid beyond the due date for any month of the quarter. In case there is a delay in filing the returns (GSTR 3B/GSTR 1), a late fee would be applicable. Rs 50 as a late fee per day is imposed (Rs.20  for nil returns), subject to a maximum of Rs.5,000. But in case of delay of tax payment for the first two months of the quarter, no late fee would be charged.


Steps to pay tax in QRMP Scheme under GST

Taxpayers could make quarterly payment online by creating a challan. See steps to create a challan.

Step 1:Firstly, log in to the GST portal 

Step 2: Go to services, and choose ‘payments’, then ‘create challan’.

challan creation step

Step 3: Under ‘Reason for challan’, opt for the ‘Monthly payment for quarterly return” option

Step 4: Then choose a financial year, period, type of challan, and click to proceed.

Step 5: In case 35% challan is selected, go for the option of ‘Generate 35% challan’ to auto-generate the challan. The amount would be calculated automatically based on the earlier months’ GSTR3B.

Step 6: Finally, make payment for the due tax amount.

It is to be noted that in case the taxpayer has an adequate balance in the electronic /cash/ credit ledgers, he does not need to make any tax payment during the first two months of the quarter.

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