Quarterly Return Monthly Payment Scheme (QRMP)

According to Goods and Service Tax  2017

Circular no. 143/13/2020 GST dated 10th November 2020

That taxpayer now can opt a new scheme quarterly return monthly payment scheme Central Government helps to small taxpayer whose turnover is less than Rs.5 crores. This is a welcome step towards the goal of increasing “Ease of Doing Business”.

The QRMP scheme allows the taxpayers to

File GSTR-3B every quarter and

pay tax every month

This will make 16 returns in total   to  8 returns

Who is  Eligible for opting quarterly return monthly payment scheme?

A registered person whose annual turnover is up to 5 crore in preceding financial year.

How to calculate Turnover

Turnover will be calculated on information provided on the GST Portal by the taxpayer.

Before migration in new scheme quarterly return monthly payment taxpayer has to file all pending returns .

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.

Facility to avail the Scheme on the common portal would be available throughout the year to facilitate the taxpayer for easy opt-in.

Method of calculate  Monthly  GST Tax:

1. Self assessment method:  Under self assessment method  taxpayer need to calculate GST tax payable on total sales made during the relevant month minus input tax credit available .

Example:  Total GST Tax on sale made in Jan 2021  is Rs.100000

and Input Tax Credit is available Rs.70,000

balance Rs. 30,000 need to pay

Example:

Total GST Tax on sale made in Jan 2021  is Rs.200000

and Input Tax Credit is available Rs.2,00,000

balance Rs. Nil need to pay

2.Fixed sum method : Under  the fixed sum method taxpayer need to pay GST tax  as a certain percentage of GST tax paid in cash during preceding quarter.

Conclusion:

Central Government help small taxpayer reducing 16 returns to 8 returns. Register under GST Act and contribute to nation.