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Published on:
February 23, 2023
By
Pranjal

QRMP Scheme under GST: Eligibility, Quarterly returns & pre-conditions

The Quarterly Returns with Monthly Payment (QRMP) scheme under GST is a compliance relief scheme that was introduced by the Indian government to reduce the compliance burden of small taxpayers. Under the QRMP scheme, eligible taxpayers can file their GSTR-1 and GSTR-3B returns on a quarterly basis while making monthly payments towards their GST liability.

Here's an overview of the QRMP scheme under GST:

Eligibility of QRMP Scheme:

The QRMP scheme is available to regular taxpayers with an aggregate turnover of up to Rs. 5 crores in the preceding financial year.

Quarterly Returns:

Under the QRMP scheme, taxpayers can file their GSTR-1 and GSTR-3B returns on a quarterly basis. The due date for filing GSTR-1 under the QRMP scheme is the 13th of the month following the end of the quarter. The due date for filing GSTR-3B under the QRMP scheme is the 22nd/24th of the month following the end of the quarter.

Monthly Payments:

Taxpayers under the QRMP scheme are required to make monthly payments towards their GST liability. The due date for making monthly payments is the 25th of the month following the end of the month. The amount of monthly payment will be calculated based on the taxpayer's tax liability for the previous quarter.

ITC:

Taxpayers under the QRMP scheme will be eligible to claim Input Tax Credit (ITC) on a monthly basis.

Late Fees of QRMP Scheme:

Taxpayers under the QRMP scheme are required to pay late fees for late filing of GSTR-1 or GSTR-3B returns. The late fee for late filing of GSTR-1 is Rs. 200 per day (Rs. 100 under CGST and Rs. 100 under SGST/UTGST) and the late fee for late filing of GSTR-3B is Rs. 50 per day (Rs. 25 under CGST and Rs. 25 under SGST/UTGST).

Overall, the QRMP scheme is designed to provide relief to small taxpayers by simplifying the GST compliance process and reducing their compliance burden. By filing returns on a quarterly basis and making monthly payments, small taxpayers can focus on their core business operations and avoid any penalties for non-compliance.

What is Quarterly Returns with Monthly Payment (QRMP) Scheme?

The Quarterly Returns with Monthly Payment (QRMP) Scheme is a GST compliance scheme introduced by the Indian government to simplify the GST compliance process for small taxpayers. The scheme is applicable to taxpayers whose annual turnover is up to Rs. 5 crores. Under this scheme, taxpayers can file their GSTR-1 and GSTR-3B returns on a quarterly basis while making monthly payments towards their GST liability.

Taxpayers under the QRMP scheme can choose to file their GSTR-1 and GSTR-3B returns either on a monthly or quarterly basis. If they choose to file quarterly returns, they need to file GSTR-1 by the 13th of the month following the end of the quarter. For example, for the quarter from January to March, GSTR-1 needs to be filed by 30th April. Taxpayers under the QRMP scheme need to pay their tax liability on a monthly basis by the 25th of the following month.

The QRMP scheme aims to provide relief to small taxpayers from the burden of filing monthly returns and making monthly payments. It allows them to file returns and make payments on a quarterly and monthly basis, respectively, providing them with more time to focus on their core business operations. The scheme also reduces the chances of errors and improves compliance, as taxpayers need to file returns and make payments more frequently.

Eligibility for the QRMP scheme

The Quarterly Returns with Monthly Payment (QRMP) scheme is designed to provide relief to small taxpayers by simplifying the GST compliance process. The following are the eligibility criteria for the QRMP scheme:

1. The taxpayer's annual turnover should be up to Rs. 5 crores.

2. Should not be a non-resident taxable person, a casual taxable person, or an Input Service Distributor.

3. Should not be engaged in making supplies through an e-commerce operator who is required to collect tax at source under Section 52 of the CGST Act.

4. Should not have opted for the Composition Scheme under Section 10 of the CGST Act.

5. Should not have any pending GSTR-1 or GSTR-3B returns for any tax period before the implementation of the QRMP scheme.

If a taxpayer meets the above eligibility criteria, they can opt for the QRMP scheme and file their GSTR-1 and GSTR-3B returns on a quarterly basis while making monthly payments towards their GST liability. The QRMP scheme aims to provide relief to small taxpayers by reducing their compliance burden and providing more time to focus on their core business operations.

Is the QRMP scheme available to every taxpayer?

No, the Quarterly Returns with Monthly Payment (QRMP) scheme is not available to every taxpayer. It is specifically designed for small taxpayers with a turnover of up to Rs. 5 crores. The scheme is aimed at reducing the compliance burden for small taxpayers and providing them with more time to focus on their core business operations.

Taxpayers who are non-resident taxable persons, casual taxable persons, Input Service Distributors, or those who have opted for the Composition Scheme under Section 10 of the CGST Act, are not eligible for the QRMP scheme.

Moreover, taxpayers engaged in making supplies through e-commerce operators who are required to collect tax at source under Section 52 of the CGST Act are also not eligible for the QRMP scheme.

Therefore, only eligible taxpayers can opt for the QRMP scheme and file their GSTR-1 and GSTR-3B returns on a quarterly basis while making monthly payments towards their GST liability. The QRMP scheme is designed to provide relief to small taxpayers by simplifying the GST compliance process and reducing their compliance burden.

What are the pre-conditions for opting for QRMP scheme for a taxpayer?

To opt for the Quarterly Returns with Monthly Payment (QRMP) scheme, a taxpayer must fulfill the following pre-conditions:

1. The taxpayer should be a regular taxpayer with a GST registration.

2. The taxpayer's aggregate turnover in the preceding financial year should be up to Rs. 5 crores.

3. The taxpayer should not be a non-resident taxable person, a casual taxable person, or an Input Service Distributor.

4. The taxpayer should not have opted for the Composition Scheme under Section 10 of the CGST Act.

5. The taxpayer should not be engaged in making supplies through an e-commerce operator who is required to collect tax at source under Section 52 of the CGST Act.

6. The taxpayer should have a valid and active registered mobile number and email address.

7. The taxpayer should not have any pending GSTR-1 or GSTR-3B returns for any tax period before the implementation of the QRMP scheme.

If a taxpayer fulfills the above pre-conditions, they can opt for the QRMP scheme and file their GSTR-1 and GSTR-3B returns on a quarterly basis while making monthly payments towards their GST liability.

It is important to note that once a taxpayer opts for the QRMP scheme, they will have to continue with the scheme for the entire financial year. Moreover, if a taxpayer fails to comply with the QRMP scheme's requirements, they may be liable to pay interest or penalties as per the GST Act.

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