The QRMP scheme came into existence to reduce the burden of monthly GST returns on the taxpayer. The central board of indirect taxes and customs has launched this Quarterly Return Monthly Payment. Also, Any registered taxpayer who has a turnover of less than 5 crore INR can participate in the same. In this article, we will discuss the Quarterly Return Monthly Payment Scheme in detail. Any registered taxpayer who has a turnover of less than 5 crore INR can participate in the same.
What Would Be The Interest On Tax?
No interest will be charged if a taxpayer has paid an amount lesser than the total tax liability in the first couple of months. You can opt for this QRM scheme in the GST portal for free. It is an online and easy procedure available in the opt-in portal.
Methods to Calculate QRMP
There are two different methods to calculate and remit the tax amounts for the starting first two months of the quarter.
1 Mixed Sum Method
This method is for the pre-filled challan that will be generated on the GST portal for the taxpayers. In this method, taxpayers must pay that challan amount in the first month or two.
The system generated challan can be said to be 35% challan in other words which is a common term and easy to understand.
2 Self-Assessment Method
This method is for nil tax liability if the balance in E-cash or E-credit is enough for the tax due for the first couple of months or in case of nil tax liability. This method is also known as an existing method in which the taxpayer must pay the tax liabilities based on inward as well as outward supplies.
Taxpayers should manually arrive at the liability of tax for that month and must pay the same form in the form GST PMT – 06 as well.
The Time Limit For The QRMP Scheme
The time limit for opting for the QRMP scheme is simple and easy as well. You can easily avail of the online process and in any quarter, it will be available throughout the year.
Option for QRMP, once came into play, it will continue to keep going as it is still the registered person (RP) who revises the option or the annual aggregated turnover exceeds INR 5 Cr.
How Tax Will Be Paid Under The QRMP Scheme?
- If the taxpayer opted for a Fixed some method (FSM) then based on different scenarios, you will have to pay applicable interest.
- Tax liability mentioned in the pre-filled form GST PMT-06 has paid by the 25th of the following month, then no interest will be charged (Nil).
- If you do not pay the Tax liability mentioned in the pre-filled form GST PMT-06 by the 25th of the following month, then 18% of the tax liability will apply.
- You do not need to pay additional interest (Nil) if the final tax liability for the first two months is less than or equal to the amount paid through pre-filled form GST PMT-06.
- In the case of challan, taxpayers must select monthly payment for quarterly as one of the reasons for the challan.
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