GST - QRMP Scheme (Quarterly Return Monthly Payment Scheme)

QRMP Scheme (Quarterly Return Monthly Payment Scheme) under GST introduced by keeping in view the benefit for small taxpayers whose aggregate turnover up to Rs.5 crore.

Government by introducing this scheme gives a major relief to such taxpayers in the way of filling returns quarterly instead of monthly.

Such tax payers has to file GSTR1 and GSTR 3B on quarterly basis along with monthly tax payments.

Let’s understand in details what QRMP Scheme under GST is:

 

What is QRMP Scheme under GST?

Quarterly Return Monthly Payment Scheme (QRMP) is an optional scheme introduced for the benefit of small taxpayers.

This scheme provides the option to those whose aggregate turnover is upto 5 crores to furnish the returns (GSTR1 and GSTR3B) on quarterly basis and pay the taxes on monthly basis.

So earlier, if you are filing returns on monthly basis but now you want to opt for QRMP scheme then this scheme provides relief of filling returns quarterly along with monthly payment of tax liability.

 

Who is eligible for QRMP Scheme?

Following can opt for QRMP with effect from 1st Jan 2021:

• Any registered person whose aggregate turnover of the previous financial year is up to Rs. 5 crores.
• Any Person obtaining a new registration or opting out of the composition scheme

 

Whether QRMP scheme is mandatory or optional?

QRMP scheme is optional. If a person wants to file GSTR1 and GSTR3B on quarterly basis and payment of tax on monthly basis then he can opt for this scheme by taking threshold limit into consideration.

Also Read: What is e way bill under gst | eway bill rules | in India

 

Which returns to be filled under QRMP scheme?

If you are opting QRMP scheme then you have to file GSTR1 and GSTR3B on quarterly basis. Means in a year you have to file 4 GSTR1 and 4 GSTR3B.

Along with these, QRMP scheme also provide an option for furnishing invoice detail on monthly basis known as IFF (Invoice Furnishing Facility).

Let’s understand in detail:

GSTR1 and GSTR3B

Under QRMP scheme GSTR1 and GSTR3B should be file quarterly. GSTR1 contains the details of outward supply and GSTR3b contain outward supply along with details of ITC.

IFF (Invoice Furnishing Facility)

Under QRMP a facility of furnishing invoices details on monthly basis in IFF has been provided so as to allow the details of such outward supplies to be duly reflected in form GSTR2A and Form GSTR2B of the recipient.

So in this way you can take ITC on timely basis otherwise you have to show your outward supplies at the time of furnishing GSTR1 On quarterly.

Details in IFF will have to furnish between 1st day of the succeeding months till the 13th day of the succeeding month.

Example:

IFF detail for the month of Jan 2021 must be furnishing between 1st Feb 2021 till 13th Feb 2021.

Some point related to IFF:

• Furnishing details in IFF is optional
• The details of outward supplies in IFF shall not exceed Rs. 50 Lacs in each month.
• That invoices which you have shown in IFF in the first two months of the quarter are not required to be furnish again in GSTR1.
• If you opt for IFF then you need to furnish IFF details on monthly basis.

Also Read: Section 194Q: (TDS on Purchase of Goods above Rs. 50 Lakhs)

What is the form and time limit of monthly payment under QRMP scheme?

If you are opting for QRMP scheme then along with quarterly filling of returns you have to pay tax liability monthly.

Monthly Challan	Form GST PMT-06
Time Limit	By 25th of the succeeding month(Eg. Payment of liability of Jan 2021 should be paid by 25th of Feb 2021.

For calculation of monthly payment one can choose following of the two:

• Fixed Sum Method (Pre-filled challan)
• Self-Assessment Method (Actual Tax Due)

 

How will be migrating by default in this scheme?

For the first quarter after the introducing of scheme (i.e. Jan 2021 to march 2021), all registered persons whose aggregate turnover for the previous financial year i.e. 2019-20 is upto Rs. 5 Crore and they have furnished the GSTR-3B for the month of Oct 2020 by 30th Nov 2020 will migrate in the following manner in GST system (GST common portal).

Aggregate Turnover	Default Option
Upto Rs. 1.5 Crore (filling GSTR-1 on quarerly basis)	Quarterly
Upto Rs. 1.5 Crore (filling GSTR-1 on monthly basis)	Monthly
More than 1.5 Crore and upto 5 Crore	Quarterly

If person want to change the option which is given by default then they can do by exercising between 5th Dec, 2020 till 31st Jan, 2021.

Also Read: Section 271AAD: (Penalty for Fake Invoices / False Entry)

 

Important Points about QRMP

• If turnover in exceeds Rs. 5 Crore during any quarter in the current financial year then person shall not be eligible for the scheme from the next quarter.
• QRMP scheme can be opt in any quarter throughout the year.
• Once exercise it will remain continue until option is revised or aggregate turnover exceeds Rs.5 crore.

 

Conclusion

Under GST QRMP Scheme (Quarterly Return Monthly Payment Scheme) gives a major relief to such taxpayers whose aggregate turnover up to Rs. 5 crore. They can file GSTR1 and GSTR 3B on quarterly basis along with payments of tax on monthly basis.