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