Taking another step towards the goal of increasing “Ease of doing business” in India, the CBIC has introduced QRMP Scheme (Quarterly Return Filing and Monthly Payment of Taxes) under GST to provide relief to small taxpayers. This scheme was implemented w.e.f. 1st January, 2021.
Briefly explain the concept of QRMP Scheme?
QRMP (Quarterly Return Monthly Payment Scheme) is a voluntary scheme to file return on a Quarterly basis along with the monthly payment of tax for the small scale businesses which are having aggregate turnover up to Rs 5 crore. Therefore, the small business taxpayers now have to file 8 returns i.e. 4 GSTR 1 and 4 GSTR 3B in a year as compared to 16 returns a year earlier.
Now, with the introduction of QRMP scheme with Invoice Furnishing Facility (IFF) in the GST Portal will help the taxpayers to choose quarterly filing of returns i.e. GSTR-1 as well as GSTR-3B and at the same time B2B invoices will be uploaded on the monthly basis which will be duly considered in the GSTR-2A and GSTR-2B of the recipients based on which they can avail the ITC timely.
What is the Eligibility Criteria for opting the QRMP Scheme?
A registered person who is required to file a return in Form GSTR-3B, and who is having an aggregate turnover up to Rs 5 crore in the preceding financial year, is eligible for the QRMP Scheme. However, if the aggregate turnover exceeds Rs5 crore in the current financial year during any quarter, then the scheme will not be available for the registered person from the next quarter.
The option for quarterly filing of GSTR-3B is effective from 1st January 2021 & it is clarified that this scheme is optional and can be used on the basis of GSTIN.
What is the timeline to opt for QRMP Scheme?
- The Scheme is available online and can be availed in any quarter, throughout the year.
- Once the Scheme is opted, the registered person shall have to continue to file the return in every quarter for all future tax periods, except in the following cases-
- If the aggregate turnover of the registered person crosses 5 crore during any of the quarter, then from the next quarter the person shall not be able to file quarterly returns.
- If the registered person opts to file GSTR-3B on the monthly basis.
- The person shall not be eligible to opt for filing quarterly returns if the last return has not been filed, which was due on the date of exercising such an option.
Note- The Registered Person opting for QRMP scheme can avail the facility of Invoice Furnishing Facility (IFF), So that the outward supplies can be reflected in GSTR 2A & 2B of the recipient or buyer timely.
What is Invoice Furnishing Facility (IFF)?
Invoice Furnishing Facility (IFF) is a facility under the QRMP scheme where the registered person can upload their B2B invoices up to Rs 50 lakh every month. This scheme is available to the regular taxpayers who are having annual aggregate turnover up to Rs.5 crore. The IFF is an optional scheme & Non-utilization of IFF will not attract any late fee.
How to submit details of Outward Supplies under QRMP Scheme?
The Registered person who have opted under the QRMP Scheme can use the Invoice Furnishing Facility (IFF). It allows the taxpayer to upload invoices every month. Following points shall be kept in mind while using the IFF-
- Only for the first 2 months in a quarter, IFF can be utilized.
- If the invoices has been uploaded in the IFF, then there is no requirement to upload the same invoices in GSTR-1
- B2B invoice details of the sales transactions is to be submitted along with debit & credit notes of the B2B invoices issued during the month by the taxpayer.
- The total invoice net value that can be uploaded in IFF is restricted to Rs. 50 lakh per month.
- The details provided in IFF will be reflected in the GSTR-2A, GSTR-2B of the recipients.
How to pay monthly tax under the QRMP Scheme?
The registered person have to pay tax by using form GST PMT-06 by 25th of the following month for the first 2 months of the quarter. There are 2 methods of paying tax liability under the QRMP Scheme-
- Fixed Sum Method (FSM)
- Self Assessment Method (SAM)
Fixed Sum Method-
The taxpayer shall have to pay an amount of tax in a pre-filled Challan in the form of GST PMT-06 in the following manner-
If GSTR-3B during the last quarter is filed-
- Quarterly, then the tax paid by the taxpayer will be 35% of the tax paid in cash in the preceding quarter.
- Monthly, then the tax paid by the taxpayer will be 100%of tax paid in cash in the last month of the immediately preceding quarter.
Self Assessment Method-
It is an existing method where the taxpayer can pay the tax liability by considering the tax liability paid on inward & outward supplies & the ITC available. The taxpayer has to pay the tax liability in form GST PMT-06. To confirm the amount of ITC available for the month, GSTR-2B can be used by the taxpayer. It shall be noted that the taxpayer will not be eligible for the Self Assessment Method unless he has filed the return for the complete tax period preceding such month.
What is the Due Date for filing Quarterly GSTR-3B?
The due dates for filing GSTR-3B quarterly is different in different States and Union Territories, they are as follows-
|Sr. No.||States & Union Territories||Due Date|
Chhattisgarh, Madhya Pradesh, Gujarat, Dadra and Nagar Haveli, Daman and Diu, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Pondicherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh
22nd of the month of succeeding such quarter.
Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Mizoram, Manipur, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha
24thof the month of succeeding such quarter
What are the Issues or Challenges under QRMP Scheme?
It is tedious & time consuming to decide whether to opt into QRMP Scheme or to continue with monthly returns. The separation of the documents as B2B and non-B2B shall be done at the time where the taxpayer opting into the QRMP scheme uses the Invoice Furnishing Facility (IFF). It shall help in moving the B2B documents to IFF and rest directly to the quarterly GSTR-1 return. Also, the reconciliation between IFF, sales register and GSTR-1 becomes more important. Further, the registered taxpayer under QRMP scheme shall have to choose between two methods for payment of tax every month, i.e. Fixed Sum Method and Self-assessment Method.
QRMP scheme is a new move from the government with an aim to provide more flexibility in compliances for small taxpayers. Further, it is expected that it will be beneficial not only for the small taxpayers but also for the large taxpayers who are currently losing their credits due to non-reflection of entries in GSTR 2A. Thus many suppliers are filing GSTR 1 quarterly which will lead to save both time and money. In case of any Query related to QRMP Scheme, then contact Manthan Experts.