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How To Make Tax Payments Under The QRMP Scheme?

The Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme was launched on 1 January 2021 for GST registered persons having Annual Aggregate Turnover (AATO) less than INR 5 Crores. Under this scheme, eligible Taxpayers can file GSTR-1 and GSTR-3B quarterly and pay tax on a monthly basis.

Note: This facility can be availed throughout the year, in any quarter. Once the option for QRMP Scheme is exercised, it will continue till the Taxpayer revises the option or his/her AATO exceeds INR 5 crores. In addition to this, Taxpayers opting for the QRMP scheme can avail of the Invoice Furnishing Facility facility (IFF) so that the outward supplies made to registered persons are reflected in their respective Form GSTR-2A & GSTR-2B.

Payment Of Tax Under The QRMP Scheme

IMPORTANT: Taxpayers opting for the QRMP scheme have to pay the tax due, in each of the first two months of the quarter, by the 25th of the following month. For example, for the month of April 2021, the tax has to be paid by 25 May 2021.

Taxpayers can make the payment by creating a challan (GST PMT-06). Here are the steps:

Step 1: Log in to the GST portal.

Step 2: Under ‘Services’, select ‘Payments’ and then ‘Create Challan’.

QRMP Scheme

Step 3: Under ‘Reason For Challan’, select ‘Monthly payment for quarterly return’.

QRMP Scheme

Step 4: Select the ‘Financial Year’, ‘Period’ (month), and Challan Type and then click on ‘PROCEED’.

QRMP Scheme

Note: Under the QRMP scheme, monthly payments can be made using either of these 2 methods:

  • Fixed Sum Method: Under this method, the Taxpayer has to pay tax as per the pre-filled challan – Form GST PMT-06. This amount is calculated based on the previous tax payments and will be equal to 35% of the tax paid in cash. In this case, under the Challan Type, the ‘35% Challan’ option should be selected.
  • Self Assessment Method (Actual Tax Due): Under this method, the Taxpayer has to pay tax on the outward supplies after considering the Input Tax Credit available. Furthermore, in this case, the Taxpayer has to manually arrive at the tax liability and deposit the same through Form GST PMT-06. If this payment method is prefered, under the ‘Challan Type’, the Taxpayer has to select ‘Challan on self-assessment basis’.

Step 5: If the 35% Challan option is selected, click on ‘‘Generate 35% challan’ to auto-generate the challan. As mentioned above, the amount will be auto-calculated based on the previous months GSTR-3B.

Step 6: Pay the due tax amount.

Note: If the Taxpayer has a sufficient balance in the electronic cash/credit ledger, he/she is not required to make any tax payments during the first two months of the quarter.

GST Compliance