On January 1 2021, the Central Board of Indirect Taxes and Customs (CBIC) introduced the Quarterly Return and Monthly Payment (QRMP) Scheme under the GST law. The aim of the scheme was to simplify the tax payment and tax return process for registered taxpayers who fulfil certain conditions.
This scheme eases the tax paying process for small taxpayers and reduces the compliance burden inflicted on them. Read on to know about the importance of the QRMP scheme, its eligibility criteria and steps to avail the scheme.
As per the QRMP scheme under GST, the government holds authority under Section 39(1) of the Central Goods and Services Tax Act, 2017, to notify certain classes of registered taxpayers to furnish a return quarterly, subject to the manner mentioned in Rule 61A of CGST Law, 2017.
Prior to the introduction of the QRMP scheme by CBIC, taxpayers were required to file GSTR-1 and GSTR-3B every month; now, it has been revised and can be done quarterly. Registered taxpayers with an aggregate turnover of Rs.5 crore in the previous financial year can now pay taxes monthly and furnish ITR quarterly.
The introduction of the QRMP Scheme has reduced the workload for small business owners by reducing the number of times they have to file Income Tax returns. Opting for this scheme will help them save time and effort.
With this scheme, a taxpayer can also avail the Invoice Furnishing Facility, which enables him/her to furnish four GSTR-1 files in a year and upload invoices for the first two months of that quarter.
A taxpayer can only opt for QRMP Scheme provided he/she satisfies the following criteria:
A registered taxpayer should:
A newly registered taxpayer with an aggregate turnover of up to Rs.5 crore is:
An individual taxpayer has the facility to choose from the options to opt in or out of the scheme within the given timeline. To avail of the QRMP Scheme, the taxpayer has to:
Step 1: Visit the official government portal of GST.
Step 2: Login using your credentials or create a new account after furnishing the requisite details.
Step 3: Click on ’Returns’ under the ‘Services’ tab.
Step 4: Click on the ‘Opt-in for Quarterly Return’ option to avail the scheme.
Options to opt in or out of the QRMP Scheme have a time limit. A taxpayer who opts for this scheme should do the same within the time frame of the first day of the second month of the previous quarter and the last day of the first month of the following quarter. For instance, if a taxpayer wants to opt for this scheme for the quarter of July-September, it should be done between May 1 and July 31.
An individual must submit their GSTR-3B returns every quarter by the 22nd or 24th of the following month, according to the state or union territory of your principal business. As stated previously, if you wish to opt for QRMP for the quarter of July –September, you must submit the GSTR-3B return for June by the 22nd or 24th of July.
If you want to opt out of the scheme, you have to furnish GSTR-1 and GSTR-3B monthly.
Payment of taxes under QRMP can be done by following any one of the two methods- fixed sum method and self-assessment method.
For the first two months of a quarter, a taxpayer has to pay taxes by submitting Form PMT-06 and generating a challan. A taxpayer should pay their dues by the 25th of every month.
The two methods have been summed up below:
1. Self-Assessment Method
As per this method, you can submit the inward and outward due amount as well as the available Input Tax Credit. Tax amount submitted for the initial two months of the quarter can be utilised while adjusting any liability through Form GSTR-3B.
2. Fixed Sum Method
For a registered taxpayer, if he/she has filed previous GSTR-3B quarterly, that individual will get a pre-filled challan equaling to 35% of tax due in the last quarter.
If an individual filed GSTR-3B monthly, he/she would get a pre-filled challan equaling to full tax in the last month of the preceding quarter.
A newly registered taxpayer who has not filed GSTR-3B or opted out of QRMP will not get access to the challan.
The government has introduced the QRMP Scheme under GST to improve the tax payment procedure for registered taxpayers. With the introduction of the scheme, a small taxpayer has to file only 4 quarterly GSTR-3B files instead of 12 monthly files. It has also made it easy for a taxpayer to opt in or out of this scheme through its online portal.
Ans: Invoice Furnishing Facility is exclusively beneficial for taxpayers who have opted for the QRMP Scheme. It will facilitate the taxpayer to file their outward monthly supply details. The credit will be available to the recipient while he/she furnishes GSTR-3B.
Ans: Yes, a taxpayer can opt for QRMP Scheme for some specific GSTINs registered under the same PAN.
Ans: No, if the aggregate turnover exceeds Rs.5 crore in the financial year, the taxpayer will not be able to avail the benefits of the QRMP Scheme.
Ans: For the first two months of a quarter, one cannot claim Input Tax Credit. Following that, taxpayers can generate GSTR-2A & 2B while furnishing GSTR-3B and GSTR-1. A taxpayer can refer to those to claim the ITC.
Ans: Here are the taxpayers who are not eligible to file returns under the QRMP Scheme:
OIDAR Service Provider
Input Service Distributor
Non-resident Taxable Person
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
|Section 112A||Section 50||Section 245|
|Section 80QQB||Section 32AD||Section 250|
|Section 35D||Section 143 (1a)||Section 115BAB|
|Section 143||Section 79||Section 140A|
|Section 17(2)||Section 3||Section 94A|
|Section 147||Section 80||Section 40A|
|Section 48||Section 115AD||Section 14A|
|Section 45||Section 285BA||Section 6|
|Section 36||Section 87A||Section 80GGA|
|Section 244A||Section 234E||Section 28|
|Section 197||Sectio 548||Section 194J(1)(ba)|
|Section 145A||Section 80P||Section 92CD|
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