GST Compliance: A Guide to the QRMP Scheme

In the realm of Goods and Services Tax (GST) compliance, staying abreast of the latest schemes and regulations is paramount for businesses. One such scheme, the Quarterly Return Monthly Payment (QRMP) Scheme, introduced under GST, aims to streamline the filing process for eligible taxpayers. Let’s delve into the intricacies of this scheme through a series of commonly asked questions.

1. What is the QRMP Scheme?

The QRMP Scheme allows eligible taxpayers to file their Form GSTR-1 and Form GSTR-3B returns on a quarterly basis, while ensuring the payment of taxes on a monthly basis through a designated challan.

2. Who is eligible for the QRMP Scheme?

Taxpayers with an aggregate turnover of up to Rs 5 crore in the preceding financial year, who are required to furnish Form GSTR-3B, qualify for the QRMP Scheme.

3. When does the QRMP Scheme come into effect?

Effective from January 01, 2021, the GSTN system automatically computes the aggregate annual turnover of taxpayers for seamless applicability.

4. How and when can one avail the QRMP Scheme?

The option to opt into the scheme is available throughout the year. Registered persons can opt in for any quarter from the first day of the second month of the preceding quarter until the last day of the first month of the quarter.

5. Is the option to avail the QRMP Scheme GSTIN specific?

Yes, the option is GSTIN specific, meaning some GSTINs under a PAN may opt for the scheme while others may not. Once opted in, it remains valid for future tax periods.

6. What information is required to be furnished quarterly?

Registered persons opting for the scheme must provide details of outward supply in Form GSTR-1 on a quarterly basis. Additionally, the Invoice Furnishing Facility (IFF) allows reporting of invoices for the first two months of the quarter, with a cap of Rs 50 Lakhs per month. This facility is optional, and details furnished need not be repeated in Form GSTR-1.

7. How does one enroll in the scheme?

Registered persons meeting the eligibility criteria are automatically migrated to the QRMP Scheme if they filed their Form GSTR-3B for the month of October, 2020, by November 30, 2020.

8. Are taxpayers with turnover less than Rs 1.5 crores migrated to QRMP?

No, taxpayers with turnover less than Rs 1.5 crores who file monthly GSTR-1 are not automatically migrated to the QRMP scheme.

9. How to make monthly tax payments and what are the due dates?

Taxpayers under the QRMP Scheme must pay the tax due in each of the first two months of the quarter by the 25th of the following month. Two methods are available for payment: the Fixed Sum Method and the Self-Assessment Method.

10. What is the due date for filing Form GSTR-3B under the QRMP Scheme?

Form GSTR-3B for each quarter must be furnished on or before the 22nd or 24th day of the month succeeding such quarter, depending on the classification of states.

11. Can a registered taxpayer opt out of the scheme?

The option to opt out of the scheme for a quarter is available from the first day of the second month of the preceding quarter until the last day of the first month of the quarter. Additionally, if the aggregate turnover crosses Rs 5 crore during a quarter, the taxpayer must switch to monthly filing from the succeeding quarter.

In conclusion, the QRMP Scheme offers a simplified approach to GST compliance, easing the burden for eligible taxpayers while ensuring timely filings and payments. Stay informed, stay compliant!