Tax Query: How do I pay for QRMP scheme challan?

1. I had opted for the QRMP scheme in January 2021. I now want to make tax payments under the 35% fixed sum method. How do I pay this challan?

Answer: Making tax payments under the fixed sum method is simple. You can follow the steps mentioned below:

Step 1: Log in to the GST portal and on the dashboard, you can select ‘Payments’ and then click on ‘Create challan’.

Step 2: On the ‘Reason for Challan’ page, select the ‘Monthly payment for quarterly return’ option. Then. select the financial year, period, and type of challan, and click on ‘Proceed’.

Step 3: Nex, click on ‘Generate 35% challan’ to auto-generate the challan, which will be based on the previous tax periods’ GSTR-3B.

Step 4: Proceed to pay this system-generated 35% challan. 

2. I had not opted for quarterly filing under the QRMP Scheme. Why has this option been automatically selected for me? How can I opt-out now?

Answer: If you’re a registered person under GST having a turnover up to Rs.1.5 crore and you were filing your GSTR-1 monthly, then you would have been automatically opted-in to the QRMP Scheme. Also, if your turnover was above Rs.1.5 crore but up to Rs.5 crore in the previous financial year, the quarterly filing option would have been selected on your behalf. The GST system had sent out emails and SMSes to taxpayers informing them about this automated selection.

If you now wish to opt-out, i.e., select the monthly filing option, you can do so by following the steps below:

Step 1: Visit the GST portal, and navigate to ‘Returns’ > ‘Opt-in for quarterly filing’. 

Step 2: Select the relevant financial year and click on ‘Search’.

Step 3: The quarter for which you can make changes to the filing frequency will be highlighted in green. Select the ‘monthly’ filing option. (Note that if you are already opted-in for monthly filing and wish to change to quarterly, you can do so here).

Step 4: Click on the ‘Save’ button. A confirmation message will pop-up. Click ‘Ok’ to confirm your selection. 

Note: The window to opt-in or out of the QRMP Scheme is open only from the 1st day of the second month of the preceding quarter, and until the last day of the first month of the relevant quarter. Taxpayers can make changes only within this time period. 

For example, for the quarter of January to March 2021, the last day to make changes was 31st January 2021.

3. If I have opted into the QRMP Scheme and filing quarterly returns, is it mandatory that I furnish my sales invoices in the Invoice Furnishing Facility (IFF)?

Answer: No, the IFF is not a mandatory requirement for quarterly filers. It is optional to use and can be used by those taxpayers who wish to pass on the input tax credit (ITC) to their customers for the first two months of the quarter. 

Since the GSTR-1 return will be furnished only quarterly by taxpayers under the QRMP Scheme, it could lead to the recipients (customers) losing out on ITC for the first two months of the quarter. Hence, the government has introduced the IFF facility, as the invoices furnished in the IFF will reflect in the GSTR-2A and GSTR-2B of the recipients. The recipients can claim ITC based on this.

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