QRMP Scheme under GST

The CBIC or the Central Board of Indirect Taxes & Customs introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under Goods and Services Tax (GST) to help small taxpayers whose turnover is less than Rs.5 crores. The QRMP scheme allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month.

Who is eligible for the QRMP Scheme?

A person that is eligible for the QRMP Scheme:

  • Must be registered under GST
  • Must be required to furnish a return in GSTR-3B
  • Must have an aggregate turnover up to Rs. 5 crores in the preceding financial year .

If the aggregate turnover exceeds Rs. 5 crores during any quarter of the particular financial year, then the person will no longer be eligible for the QRMP Scheme from the next quarter.

Exercising option for QRMP Scheme

A registered person intending to file his or her GSTR-3B quarterly should indicate the same on the GST portal, from the 1st of the second month of the preceding quarter until the last day of the first month of the quarter for which the option is exercised.

After opting for the quarterly scheme, the registered person must continue to furnish his returns for every quarter for all the tax periods in the future, except:

  • In case the registered person become ineligible for the quarterly returns, the taxpayer must furnish GSTR-3B on a monthly basis.
  • In case the registered person has not furnished the previous quarterly returns, he cannot opt for the next return.

Monthly or Quarterly filing of GSTR-3B

For certain people falling under the specific categories mentioned below, it shall be deemed that they have opted for monthly or quarterly filing.

The categories are:

  • Registered individuals with an aggregate turnover of up to Rs.1.5 crore, who have furnished form GSTR-1 quarterly in the current financial year- Quarterly GSTR-3B
  • Registered persons with an aggregate turnover of up to Rs.1.5 crore, who have furnished form GSTR-1 monthly in the current financial year- Monthly GSTR-3B; in this situation the person can change the default option and opt for quarterly GSTR-3B during a certain time period as per mentioned.
  • Registered persons having an aggregate turnover exceeding Rs.1.5 crore and up to Rs.5 crore in the preceding financial year- Quarterly GSTR-3B

Submission of details for outward supplies

The taxpayers who opt for the QRMP scheme can use the Invoice Furnishing Facility (IFF) which allows quarterly GSTR-1 filers to submit their invoices every month. Before using IFF, one should:

  • The IFF can be used only in the first two months of the quarter.
  • The last month’s quarter related invoice is to be uploaded in the GSTR-1 return only.
  • If the invoices have been uploaded in the IFF, there is no requirement to upload in the GSTR-1.
  • The B2B invoice details of the transactions must be submitted by the taxpayer along with the credit and debit notes of the B2B invoices issues during the related month.
  • The invoices’ total net value that can be uploaded is restricted to Rs. 50 Lakh per month.
  • The details submitted in IFF will be shown in the GSTR-2A, GSTR-2B, GSTR-4A or GSTR-6A of the recipients as well, according to the case.
  • The IFF will be active from 1st January of the mentioned year.

Making Monthly Tax Payments under the QRMP Scheme

The taxpayer must deposit tax using form GST PMT-06 by the 25th of the related month, for the first and second months of the quarter. The taxpayers can either pay their monthly tax liability either in the Fixed Sum Method (FSM), also popular as 35% challan procedure, or by the Assessment Method (SAM).

According to the Fixed Sum Challan Method or FSM, the taxpayer must pay an amount of tax mentioned in a pre-filled challan in the form GST PMT-06 for an amount equal to 35% of the tax paid in cash.

According to the categories:

  • The taxpayer who furnished GSTR-3B quarterly for the last quarter must pay 35% of tax paid in cash in the preceding quarter.
  • Again, a taxpayer who furnishedGSTR-3B monthly during the last quarter must pay 100% of the tax paid in cash in the last month of the immediately preceding quarter.

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