The Quarterly Returns with Monthly Payment (QRMP) Scheme is designed for eligible taxpayers to file their Form GSTR-1 and Form GSTR-3B returns on a quarterly basis while making monthly tax payments through a challan.
Eligibility Criteria
The QRMP scheme is open to all taxpayers whose aggregate annual turnover (PAN-based) is up to ₹5 Crore in both the current financial year and the preceding financial year (if applicable) and who have already submitted their last due Form GSTR-3B return are eligible to participate in the QRMP scheme.
For example: A taxpayer whose Annual aggregate turnover (AATO) was less than or up to ₹5 Crore in the preceding FY and who has filed Form GSTR-3B for the period ending June 2021 (at the very least) by the last day of the first month of the next quarter, i.e., by 31st July 2021, is eligible.
Conditions to be Fulfilled
To opt for the QRMP scheme, a taxpayer must meet the following pre-conditions:
• The taxpayer must be registered as a regular taxpayer or have opted out of the composition scheme.
• The taxpayer must possess a valid User ID and password.
• The Annual aggregate turnover (AATO) for both the current and preceding FYs is up to ₹5 Crore.
• The most recent Form GSTR-3B return for the last tax period has been filed (e.g., for the last month).
Opting for the QRMP Scheme
To opt in or out of the QRMP scheme, log in to the GST portal using your valid credentials and navigate to Services > Returns > Opt-in for Quarterly Return option.
Invoice Furnishing Facility (IFF)
The Invoice Furnishing Facility (IFF) is for taxpayers who have chosen the QRMP scheme. It allows them to declare outward supplies to a registered person for the first two months of any quarter. The IFF operates as an optional facility and is similar to Form GSTR-1. It facilitates the filing of B2B invoices, credit notes, debit notes, etc. The deadline for filing IFF for a month is the 13th of the subsequent month. This allows recipient taxpayers to claim credit for these invoices in the same month if reported in IFF by the supplier taxpayer under the QRMP scheme.
Methods of Monthly Tax Payments
1. Fixed Sum Method or 35% Challan Methods
Under this approach, you are required to pay 35% of the tax paid in the last quarter if you filed GSTR-3B on a quarterly basis or If you filed GSTR-3B on a monthly basis, you need to pay 100% of the tax paid in the last month of the preceding quarter for the first two months of the current quarter.
Payment is done through GST PMT-06 by the 25th of the following month.
2. Self Assessment Method
In this method, you calculate your tax liability based on supplies made and claimed ITC credit. The resulting net amount must be paid.
Opt-In and Opt-Out Timelines
You can opt in or out of the QRMP scheme based on the following timelines:
For
– 1st Quarter: 1st February to 30th April
– 2nd Quarter: 1st May to 31st July
– 3rd Quarter: 1st August to 31st October
– 4th Quarter: 1st November to 31st January of the next year
Multiple GSTINs
Yes, you may choose the QRMP Scheme for specific GSTINs and opt out of the scheme for other GSTINs registered under a common PAN.
Conclusion: The QRMP Scheme streamlines GST compliance, offering quarterly returns and monthly payments. With clear eligibility criteria and opt-in/out timelines, businesses can make informed decisions. The Invoice Furnishing Facility (IFF) enhances efficiency in reporting outward supplies. Overall, QRMP reflects government efforts to create a taxpayer-friendly GST regime, empowering businesses for smoother tax management.
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