Tax Payment Options Under QRMP Scheme

The Quarterly Returns and Monthly Payment of Tax (QRMP) scheme was implemented on 1st January 2021. The taxpayers who opted for the QRMP scheme have to choose any of the two options available for tax payment for the first two months of a quarter. 

The following are the available two options:

  1. Fixed Sum Method (FSM): The GST portal will generate a pre-filled challan in Form GST PMT-06 based on the previous tax payment record.
  2. Self-Assessment Method (SAM): The tax due should be paid on actual supplies after deducting the Input Tax Credit (ITC) available.

In the fixed sum method, the 35% Challan can be generated by selecting the following path:

Reason For challan –> Monthly Payment for Quarterly Return –> 35% Challan which is in turn calculated as per the following situation:

  • 35% of the amount paid as tax from electronic cash ledger in their preceding quarter GSTR-3B return, if the GSTR-3B was furnished GSTR-3B every quarter; or
  • 100% of the amount paid as tax from electronic cash ledger in their GSTR-3B return for the last month of the immediately preceding quarter, If the GSTR-3B was furnished every month.

This pattern for tax payment will be applicable from April 2021 onwards. However, it is clarified that for Q4 of 2020-21 (for January and February 2021), the auto-populated challan generated under 35% challan contains 100% of the tax liability discharged from electronic cash ledger for December 2020. The same is that till December 2020, all taxpayers were filing GSTR-3B return monthly.

The QRMP taxpayers are not required to deposit any amount for the first two months of a quarter, if:

  • Balance in electronic cash ledger or electronic credit ledger is sufficient for tax due for the first/ second month of the quarter; or
  • There is a nil tax liability

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

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