December 30, 2022
Shreeja Ray

QRMP Scheme: Benefits, Who qualifies etc.

The Central Board of Indirect Taxes & Customs (CBIC) introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) system under the Goods and Services Tax (GST) in order to assist small taxpayers with a turnover of less than Rs.5 crores. The QRMP plan permits taxpayers to file GSTR-3B quarterly and make monthly tax payments.

The ClearTax GST software has a solution to facilitate the completion of this task. ClearTax GST allows tax professionals or businesses to effortlessly upload a CSV file including a list of GSTINs and the monthly or quarterly filing frequency. This will be updated within a few seconds on the GST portal!

Who qualifies for the QRMP program?

The QRMP Scheme is available to taxpayers who are required to file a GSTR-3B return and whose annual turnover does not exceed Rs.5 crore. Moreover, if the registered person's annual turnover reaches Rs. 5 crore during any quarter of the current fiscal year, they will no longer be eligible for the plan beginning with the next quarter.

It is clarified that the total yearly turnover for the prior fiscal year shall be computed on the common portal using the information provided by the taxpayer in the returns for the preceding fiscal year's tax quarters.

The quarterly GSTR-3B filing option becomes accessible on January 1, 2021. This program is clarified to be optional and accessible via the GSTIN.

How to exercise Option for QRMP Scheme?

A taxpayer who plans to file his GSTR-3B quarterly must express this intention on the GST site between the first day of the second month of the preceding quarter and the last day of the first month of the quarter for which the quarterly filing option is being exercised.

For instance, if A wanted to file quarterly returns for the quarter of April-June 2021, he would have needed to opt for quarterly filing on the common GST portal between February 1 and April 30.

Once a taxpayer has elected quarterly filing, he must continue to file his return every quarter for all future tax periods, unless one of the following occurs:

1. If the taxpayer is no longer qualified to make a quarterly return (for example, if the aggregate turnover crosses Rs.5 crore during a quarter, then from the next quarter he will not be able to file quarterly returns). In this situation, the taxpayer must submit GSTR-3B monthly.

2. If the last return that was due on the day of exercising such an option has not been filed, a taxpayer is ineligible to opt for filing quarterly returns.

Tax payments under the QRMP plan

For the first two months of a quarter, you will need to use Form PMT-06 to pay your taxes and make a payment challan. Each month's payment needs to be made by the 25th of the next month. You have two options for paying:

Using a fixed amount

If your last GSTR-3B was filed every three months, you can get a pre-filled challan for 35% of the cash-paid tax amount in the previous quarter. But you can't get the 35% challan if you are a new taxpayer, haven't filed your last GSTR-3B, or have left the Composition scheme.

If your last GSTR-3B was filed every month, you can get a pre-filled challan for the full tax amount paid in cash in the last month of the previous quarter.

Method of self-evaluation

Here, you can enter the real amount of tax you owe on both incoming and outgoing supplies, as well as any ITC you have.

Through form GSTR-3B, you can use the tax amount you've sent in for the first two months to change any debt you have for the quarter.

Benefits of the QRMP Scheme

1. The burden of compliance on taxpayers has been greatly decreased, and taxpayers now need to file only four GSTR-3B returns rather than the previous requirement of 12 GSTR-3B reports every year.

2. In light of the fact that the Invoice Filing Facility (IFF) will be made available through this scheme, taxpayers will only be required to file a total of four GSTR-1 returns.

3. For the first two months of the quarter, the recipient should be provided with invoice details in IFF format, depending on what is required of them. The additional data of the invoices can be provided in the GSTR-1 form that is submitted quarterly.

4. Conveniently pay your tax on a monthly basis using either the Fixed Sum Method (Pre-filled Challan) or the Self-Assessment Method (actual tax owed after adjusting ITC) in the first two months of each Quarter .

5. Simple participation requirements and withdrawal options

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