What is QRMP Scheme under GST?

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  • Last Updated on 14 June, 2021

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What is QRMP Scheme under GST?


Under the GST law, Quarterly Return Monthly Payment (QRMP) Scheme allows the registered person (i.e., who is required to furnish Form GSTR-1 & GSTR-3B and having aggregate turnover up to Rs. 5 crores) to furnish such return quarterly along with the monthly payment of tax by a simple challan in FORM GST PMT-06, with effect from January 01, 2021.

What is QRMP Scheme?

Proviso to Section 39(1) of the Central Goods and Services Tax (‘CGST’) Act, 2017 empowers the Government to notify a certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to the manner prescribed in Rule 61A of CGST Rules, 2017.

Further, proviso to Section 39(7) of the CGST Act, 2017 provides that the notified persons shall be required to pay the tax due to the Government within such time as may be prescribed considering particulars such as inward and outward supplies, input tax credit availed, etc. during a month.

In this regard, the CBIC notified a class of registered persons (discussed in Para 3) who are required to furnish a return every quarter from January 2021 onwards and pay the tax due every month.

Persons Eligible to Opt for QRMP Scheme

The CBIC notified[1] that the registered person having aggregate turnover of up to Rs. 5 crores in the preceding financial year and have opted to furnish a return for every quarter[2] would be eligible for QRMP Scheme.

In case the aggregate turnover exceeds Rs. 5 crores during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.

The option to avail the QRMP Scheme is GSTIN wise. Therefore, some GSTINs for a PAN might be eligible for the QRMP Scheme, and the remaining GSTINs might not be able to opt for the Scheme.

Eligibility of QRMP Scheme in Case of New Registration

A newly registered taxpayer whose aggregate turnover is up to Rs. 5 Crores can opt for the QRMP scheme based on the following conditions:

    • If the registration is granted on any date during the first month of a quarter, the registered person will be able to opt for the QRMP scheme from the beginning itself.
    • If the registration is granted on any of the dates during the latter two months of a quarter, then the registered person will be able to opt for the QRMP scheme only from the next quarter onwards.

Manner of Opting QRPM Scheme

The facility to avail the Scheme on the common portal would be available throughout the year [Navigate: Services > Returns > Opt-in for Quarterly Return].

A registered person can opt-in for any quarter from the first day of the second month of the preceding quarter to the last day of the first month of the quarter.

There is no requirement to opt for the Scheme each quarter separately. Once the Scheme is exercised, it would be valid for future tax periods also.

Furnishing Details of Outward Supply with Invoice Furnishing Facility (IFF)

The registered persons opting for the Scheme would be required to furnish the details of an outward supply in Form GSTR-1 every quarter.

However, the supplier has been given an option to furnish the details monthly. For this, the Invoice furnishing facility (‘IFF’), which is optional in nature, has been introduced for furnishing the details of invoices of supply made to registered persons for the first two months of the quarter.

Notably, the taxpayer can upload a maximum of Rs. 50 Lakhs invoices in each of the two months of the quarter. The invoices may be uploaded at once or continuously in IFF from the 1st day of the month till the 13th day of the succeeding month.

The details uploaded in the IFF shall be duly reflected in the Form GSTR-2A and Form GSTR-2B of the concerned recipient.

Quarterly Filing of Form GSTR-3B

The registered persons opting for the QRMP Scheme would be required to furnish Form GSTR-3B, for each quarter, on or before the 22nd or 24th day of the month succeeding such a quarter for the Class A States[3] and the Class B States[4] respectively or such notified date.

Any amount found to be paid in excess after filing of that quarter’s FORM GSTR-3B may either be claimed as a refund or may be used for any other purpose in subsequent quarters.

Monthly Payment of Tax

The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by depositing the due amount in Form GST PMT-06. The amount shall be deposited by the 25th day of next month.

The amount deposited by the registered person in the first two months shall be debited solely for the purposes of offsetting the liability furnished in that quarter’s Form GSTR-3B.

A facility would be made available on the portal for generating a pre-filled challan in Form GST PMT-06. The person can use any of the following two options for the monthly payment of tax during the first two months:

Method Amount of Tax to be Paid in Form GST PMT-06 Interest in Case Actual Liability Differs with the Tax Payment Late Fee
Fixed Sum Method a) If the last return is furnished quarterly, an amount equivalent to 35% of the tax liability paid for the previous quarter shall be paid

b) If the last return is furnished monthly, the tax liability paid in the return for the previous month shall be paid

No interest would be required to be paid, provided tax is paid by the due date No late fee would be applicable on delay in payment of tax using Form PMT-06
Self-Assessment Method The persons can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit available. Interest would be applicable
Watch Taxmann’s Webinar on the New GST Return System for Small Taxpayers effective from 01.01.2021, and its impact on Indian Business

[1] Notification No. 84/2020 – Central Tax dated 10th November 2020

[2] Rule 61A(1) of the CGST Rules, 2017

[3] States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep.

[4] States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

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