What are the Steps to Make Tax Payments Under the QRMP Scheme
Ever since GST was implemented, the government has been making amends and additions to the system to make it easier on businesses.
One such effort is the QRMP scheme. QRMP or the Quarterly Return and Monthly Payment scheme were introduced to make it easier for small businesses to file their GST returns.
What is the QRMP Scheme?
Under the QRMP scheme, businesses with a turnover of less than Rs 5 crore in the previous fiscal year can file their GST returns on a quarterly basis.
They can also pay their taxes monthly, instead of paying them all at once at the end of the quarter.
To avail of this scheme, businesses will have to update their GST registration.
Once you have updated your registration, you will be able to file your returns and make payments under the QRMP scheme.
Payment Methods Under QRMP Scheme
Your tax liability under the QRMP scheme can be calculated in two different methods for the first two months of the quarter:
1. Fixed sum method/35% method
Here, your tax liability is assessed for you on the basis of your previous tax payment. This amount can be seen in the auto-generated challan in Form GST PMT-06 (the method to generate this challan is explained below).
The tax liability will be 35% of the tax paid for the previous quarter.
For example, if in the previous quarter, you had paid Rs 1,000 as tax, your tax liability for the first 2 months of the next quarter will be Rs 350.
2. Self-assessment method
In this method, you can calculate your own tax liability for the first 2 months of the quarter based on your sales during these 2 months. You have to take into consideration Input Tax Credit as well.
Once you have calculated your tax liability, you can generate a challan in Form GST PMT-06 and make the payment.
How to Pay Taxes Under QRMP Scheme
Step 1: Log in to the GST portal using your user ID and password.
Step 2: Go to Services > Payments > Create Challan
Step 3: It will ask for a reason for the challan. Under that, choose the 'Monthly payment for quarterly return" option.
Step 4: Following that, you need to choose the financial year, the period for which you are paying and the type of challan. Click 'Proceed'.
For 35% challan
Step 5: If you want to go for the 35% challan method, select '35% challan' under challan type.
Step 6: On the next page, click on 'Generate 35% challan". This will generate challan automatically based on the GSTR-3B of previous periods.
Step 7: Once the challan is generated you can go ahead with making the payment. You can do it through multiple modes including NEFT, RTGS, and net banking.
Step 8: Once the payment is made, you need to download the challan and keep it for future reference.
For Challan on a self-assessment basis
Step 5: If you want to go for this challan method, select 'Challan on self-assessment basis' under challan type.
Step 6: On the next page, you need to manually enter and calculate the amount of tax liability under various heads.
Step 7: Once done, click 'Generate Challan'. This will generate a challan which you can save for future reference.
Step 8: You can make the payment using any of the modes mentioned above.
Tax Payment Due Dates Under QRMP Scheme
The tax payment under the QRMP scheme is to be made by the 25th of the month following the tax period for the first two months of the quarter.
For example, if you are paying taxes for January, the due date will be 25th February.
For the third month of the quarter, the tax payment is due on the 22nd or 24th of the month after the quarter. GSTR-3B also has to be filed during this time.
For example, if you are paying taxes for the quarter ending March, the due date will be the 22nd or 24th of April.
It is important to note that under the QRMP scheme, businesses will have to file their GST returns every quarter.
Interest and Penalties for Late Payment of Taxes Under QRMP Scheme
If you fail to make the tax payment on time, you will have to pay interest at the rate of 18%. The interest will be calculated from the date after the due date till the date of actual payment.
The interest rate is the same for all three months of the quarter.
Note that there are late fees apply if there is a delay in filing the quarterly returns as well.
We hope this article helped explain how businesses can make tax payments under the QRMP scheme. If you have any further questions, feel free to reach out to us and we will be happy to assist you.
If you haven’t done GST registration yet, we can help you with GST registration online without hassle. Contact us now.
Author : Nivetha
Date : 29-Jul-2022