File application for Pending GST Clarification
Payment of Tax by Fixed Sum Method under QRMP Scheme
Introduction : Under GST portal currently assessee can avail the benefit of Quarterly Return and Monthly Payment Scheme, the details relating to such scheme has already been covered under our previous article and now there is clarification in relation to method of payment. In this article we will cover the said clarification.
Clarification relating to Payment of Tax by Fixed Sum Method under QRMP Scheme:
It shall be noted by assessee that with effect from 1st January, 2021 there are two options which are available with assessee for payment of tax, the first method is payment of tax by Self-Assessment method i.e., paying tax due on actual supplies after deducting the Input Tax Credit available, this is also known in common parlance as regular way of taking credit and making payment (Self-Assessment Mode)
Another option that has been given to assessee is payment by fixed sum method, under this method assessee will be provided with an option that he can pay
- 35% of amount paid as tax from electronic cash ledger in their preceding quarter GSTR-3B return, if it was furnished on quarterly basis; or
- 100% of the amount paid as tax from electronic cash ledger in their GSTR-3B return for the last month of the immediately preceding quarter, if it was furnished on monthly basis.
Illustration : If in preceding GSTR-3B for particular quarter entity has paid Rs. 60,000/- as tax through its electronic cash ledger, now, how entity can pay tax if he wants to adopt payment method as fixed challan method.
If entity wants to pay tax under fixed challan method than entity is required to generate such challan by going to Reason for Challan>Monthly Payment for Quarterly Return> 35% Challan. Here it will show an auto-generated challan of Rs. 20,000/-
Here the question that arise is, whether the said challan is generated for all the three months of quarter?
It shall be noted that this challan will be generated only for first two months of the quarter, in last month assessee is required to pay tax on actual basis.
For January and February auto generated challan will be there for 100% of amount paid as tax from Electronic Cash Ledger in their GSTR-3B return for the month of December as during said period assessee was required to file GSTR-3B on monthly basis.
What if there is nil tax liability in previous quarter and now assessee is liable to pay the tax amount?
In said case assessee will be required to calculate tax amount manually and pay the tax on self-assessment basis.
In reverse case also, (i.e., where in previous quarter there was tax liability but in current period assessee is not liable to pay tax amount) the assessee shall not be required to pay any challan in form of tax amount.