Provisions relating to Quarterly Return Monthly Payment Scheme

Circular No.: 143/13/2020-GST
Date of Circular: 10th November 2020
Relevant Sections and Rules:

• CGST Act, 2017:
  • Section 39(1), Section 50, Section 47, Section 168(1)
• CGST Rules, 2017:
  • Rule 61A (Quarterly filing of GSTR-3B)
• Relevant Notifications:
  • Notification Nos. 81, 82, 84, 85/2020–Central Tax dated 10.11.2020

Summary of Circular in Paragraphs (One Clarification Each):

1. Introduction of QRMP Scheme:
   The Quarterly Return Monthly Payment (QRMP) Scheme allows registered persons with aggregate turnover up to ₹5 crore to file quarterly GSTR-3B returns with monthly tax payments, effective from 01.01.2021. It eases compliance burden for small taxpayers.
2. Eligibility for the Scheme:
   Taxpayers filing GSTR-3B with turnover up to ₹5 crore in the preceding FY are eligible. Turnover is auto-calculated on the portal. If turnover exceeds ₹5 crore during the year, eligibility lapses from the next quarter.
3. Exercising Option to Opt for QRMP:
   Taxpayers can opt into QRMP from the 1st day of the 2nd month of the previous quarter till the 1st month of the relevant quarter. Once opted in, they remain in the scheme unless changed. Automatic migration for eligible taxpayers was done based on October 2020 filing status.
4. Invoice Furnishing Facility (IFF):
   IFF enables taxpayers to report B2B invoices (up to ₹50 lakh per month) in the first two months of a quarter. This optional facility helps recipients get ITC in GSTR-2A/2B promptly. Remaining invoices are furnished in quarterly GSTR-1.
5. Monthly Payment of Tax via PMT-06:
   QRMP taxpayers must pay tax monthly using FORM GST PMT-06 by the 25th of the following month via:

• Fixed Sum Method (FSM): 35% of last quarter’s cash tax payment (if previous return was quarterly) or 100% of last month’s payment (if previous return was monthly).
• Self-Assessment Method (SAM): Calculate actual liability minus ITC using GSTR-2B.

6. GSTR-3B Filing Timeline and Usage of Deposits:
   Quarterly GSTR-3B to be filed by 22nd or 24th of the month following the quarter. Tax deposited in the first two months offsets quarterly liability. Excess balance may be claimed as refund or adjusted in future.
7. Interest Applicability:

• FSM Users: No interest if PMT-06 is paid on time, even if actual liability is higher.
• SAM Users: Interest applies on net unpaid tax beyond due date.
• Late GSTR-3B filing: Interest is payable on net liability from due date to actual filing date.

8. Late Fee Implications:
   Late fee applies only to delayed GSTR-3B or GSTR-1, not to monthly PMT-06 tax payments. Hence, no late fee for delays in monthly deposits under QRMP.

Source: Circular No.: 143/13/2020-GST