Here is how to make the GST Payment by Fixed Sum Method & Self-Assessment Method under QRMP Scheme. w.e.f 1st January 2021, the following two options are available to the Taxpayers who are under Quarterly Returns and Monthly Payment of Tax (QRMP) Scheme. This is for tax payment for the first 02 months of a quarter:
What is the Fixed sum method?
In this method, the GST Portal can generate a pre-filled challan in Form GST PMT-06 based on the taxpayer’s past record.
How it works?
In the fixed sum method, the 35% payment Challan can be generated by the taxpayer. This can be done by selecting the Reason For Challan > Monthly Payment for Quarterly Return > 35% Challan. This will be calculated as per the following situation:
- The 35% of the tax amount paid from Electronic Cash Ledger in their preceding quarter GSTR 3B return, if it was furnished on a quarterly basis; or
- 100% of the tax amount paid from the Electronic Cash Ledger in their GSTR-3B return for the last month of the immediately preceding quarter, if it was furnished on monthly basis.
Payment Method For January & February 2021
For the months of Jan and Feb 2021, in Q4 of 2020-21, the auto-populated challan generated will contain 100% of the tax liability and not 35%. This will be discharged from the Electronic Cash Ledger for the month of December 2020. It is because, till December 2020, all taxpayers were filing GSTR-3B return on a monthly basis.
Payment method from April 2021 Onwards
From the month of April 2021 onwards, the pattern as suggested above will follow with points no. 1 & 2.
What is Self-Assessment Method?
In this method, the Tax due is to be paid on actual supplies after deducting the Input Tax Credit(ITC) available to you.
A situation where No monthly payment is required to be made
The taxpayers need not require to deposit any amount for the first 02 months of a quarter, if:
- Balance in Electronic Cash Ledger / Electronic Credit Ledger is sufficient for tax due for the first/ second month of the quarter; or
- There is a NIL tax liability
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