REGARDING QRMPS SCHEME

AS PER CIRCULAR OF CBIC, IN CASE OF FIXED SUM METHOD UNDER QRMPS SCHEME, A TAXPAYER WHO HAS FURNISHED QUARTERLY RETURN IN PRCEEDING QUARTER CAN OPT TO PAY 35 PERCENT OF TAX PAID IN CASH IN PRECEDING QUARTER. BUT I HAVE SOME DOUBT REGARDING PAYMENT OF TYAX WHICH ARE AS FOLLOWS:

1 IF THERE IS NO CASH PAYMENT OF TAX IN PRECEDING QUARTER THAN HOW TAX PAID IS CALCULATED IN FIXED SUM METHOD?

2. IF THERE IS SUFFICIENT BALANCE OF ITC IS IN ELECTRONIC CREDIT LEDGER THAN WHETHER MONTHLY PAYMENT OF TX IS ONLY DONE IN CASH OR CAN BE MADE THROUGH ITC?

3. IF MONTHLY PAYMENT IS ONLY DONE THROUGH CASH THAN HOW UNUTILISED BALANCE OF ITC IN ELECTRONIC CREDIT LEDGER CAN BE UTILISED?

PEASE CLEAR MY DOUBT AS EARLY AS POSSIBLE..

Hi Monica,

Good questions on the QRMPS (Quarterly Return Monthly Payment Scheme)! Let me clarify each point:

If there was no cash payment of tax in the preceding quarter, how is the tax paid calculated for fixed sum method?
- In this case, the "tax paid in preceding quarter" for the fixed sum method will be considered as zero. So the taxpayer needs to pay 35% of zero, i.e., zero in cash for the current quarter. However, if there is any liability, it should be paid in cash or through ITC as applicable.
If there is sufficient ITC balance in electronic credit ledger, can the monthly tax payment be made through ITC?
- As per the scheme rules, monthly tax payment (for the current quarter) must be paid in cash only, 35% of the tax paid in the previous quarter. ITC cannot be used for this monthly cash payment under QRMPS.
How can the unutilized balance of ITC in electronic credit ledger be utilized?
- The unutilized ITC balance can be used for payment of tax at the time of filing the quarterly return (GSTR-3B) and for payment of tax on outward supplies. The monthly cash payments do not restrict ITC usage for other tax liabilities as per the usual GST provisions.

Summary:

Monthly payments under QRMPS = 35% of previous quarter’s tax paid, paid only in cash.
ITC cannot be used for these monthly payments.
ITC can be used at the time of quarterly return filing to pay remaining tax liabilities.