QRMP Scheme under GST – Eligibility, Tax Payment, Return Filing Late Fees

The QRMP Scheme under GST is a new initiative by the Indian government to help small and medium businesses comply with GST regulations. The scheme is an optional compliance measure that aims to simplify the GST compliance process for businesses with an annual turnover of up to Rs. 5 crore. In this article, we will discuss the eligibility criteria for the QRMP Scheme, the tax payment and return filing process, and the late fees associated with non-compliance.

QRMP Scheme Eligibility Criteria

The QRMP Scheme is applicable to businesses that have an annual turnover of up to Rs. 5 crore and are registered under the Goods and Services Tax (GST) Act. Businesses that have opted for the Composition Scheme or are non-resident taxable persons are not eligible for the QRMP Scheme.

Additionally, businesses that have filed GSTR-3B on a quarterly basis for the preceding financial year are eligible to opt for the QRMP Scheme. Businesses that are newly registered under the GST Act are also eligible to opt for the scheme.

Tax Payment and Return Filing Process

Under the QRMP Scheme, businesses are required to pay tax on a monthly basis for the first two months of the quarter. This means that businesses will have to calculate and pay their tax liability for the months of January and February by the 25th of the following month.

For the third month of the quarter, businesses have the option to either opt for monthly tax payment or pay tax on a quarterly basis. If a business chooses to pay tax on a monthly basis for the third month of the quarter, they will have to calculate and pay their tax liability by the 25th of the following month.

If a business chooses to pay tax on a quarterly basis for the third month of the quarter, they will have to file GSTR-1 and GSTR-3B for the entire quarter by the 13th of the following month.

The due dates for tax payment and return filing for businesses under the QRMP Scheme are as follows:

QuarterMonth 1Month 2Month 3Due Date for Tax PaymentDue Date for Return FilingJanuary to MarchJanuaryFebruaryMarch25th of February13th of AprilApril to JuneAprilMayJune25th of May13th of JulyJuly to SeptemberJulyAugustSeptember25th of August13th of OctoberOctober to DecemberOctoberNovemberDecember25th of November13th of January

Late Fees for Non-Compliance

Businesses that fail to comply with the tax payment and return filing requirements under the QRMP Scheme will be liable to pay late fees. The late fee for delayed payment of tax is 18% per annum, calculated on a daily basis from the due date of payment until the date of payment.

The late fee for delayed filing of GSTR-1 and GSTR-3B is Rs. 50 per day of delay for both CGST and SGST, totaling to a maximum of Rs. 4,500 for both.

Overall, the QRMP Scheme under GST is a beneficial initiative for small and medium businesses to simplify their GST compliance process. By complying with the eligibility criteria and following the tax payment and return filing process, businesses can avoid unnecessary late fees and penalties.