The Goods and Services Tax Network (GSTN) has issued an Advisory on payment of tax by taxpayers under Quarterly Return Monthly Payment of Taxes (QRMP) Scheme for the month of March, 2021. For ready reference of our readers, the advisory is given below:
All taxpayers having aggregate turnover up to Rs 5 crores, under QRMP Scheme (w.e.f. 01.01.2021 onwards), are required to furnish return on quarterly basis, along with payment of tax on monthly basis.
Persons availing QRMP Scheme are required to pay tax due, in each of the three months of the quarter, by depositing the due amount as discussed below.
Payment of Tax for first two months of a quarter (M1 & M2 ie for January and February month for Jan-March Quarter):
a. While generating the challan, taxpayers must select “Monthly payment for quarterly taxpayer” as reason for generating the challan.
b. They can choose either of the following two options to generate the Challan:
i. 35% Challan (Fixed Sum Method): For taxpayers opting for this method, portal will generate a pre-filled challan in Form GST PMT-06, for an amount equal to 35% of the tax paid in cash, in the preceding quarter, if the return was furnished quarterly or equal to the tax paid in cash in the last month of the immediately preceding quarter, if the return was furnished monthly.
ii. Challan on a self-assessment basis (Self-Assessment Method): These taxpayers can pay tax due by considering the tax liability on inward and outward supplies and the input tax credit as available, in FORM GST PMT-06.
Note: The aforesaid options are not available for payment of tax for third month (M3) of the quarter to persons availing QRMP Scheme.
c. Payment of Tax for third month of a quarter (M3 ie for March month for Jan-March Quarter): For third month of the quarter (M3), taxpayers can click button ‘Create Challan’ in Payment Table 6 of Form GSTR-3B and file GST-PMT-06 Challan, for depositing any amount towards their tax liability.
Payment of Tax by Fixed Sum Method under QRMP Scheme
- W.e.f. 1st January, 2021, following two options are available to the Taxpayers who are under Quarterly Returns and Monthly Payment of Tax (QRMP) Scheme for tax payment for first 02 months of a quarter:
- In fixed sum method, the 35% Challan can be generated by selecting the Reason For Challan>Monthly Payment for Quarterly Return> 35% Challan which is in turn calculated as per following situation:
- It is to note that , for the months of Jan and Feb, 2021, in Q4 of 2020-21, the auto-populated challan generated under 35% Challan would contain 100% of the tax liability discharged from Electronic Cash Ledger for the month of December, 2020 (and not 35%). [Reason: Till December 2020, all taxpayers were filing GSTR-3B return on a monthly basis.]
- From April, 2021 onwards, the pattern as suggested at Para 2 (a) and (b) would follow.
- It is noteworthy, that the taxpayers are not required to deposit any amount for the first 02 months of a quarter, if:
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Source: GST Portal
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