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QRMP scheme under gst

QRMP Scheme Under GST stands for Quarterly Return Monthly Payment.

QRMP Scheme is the recent introduction to the GST ambit to ease the efforts of small businesses and has come into effect since January 01, 2021.

Under this scheme, small businesses whose annual aggregate turnover is up to 5 Cr will now be allowed to file GSTR-3B on a ‘Quarterly’ basis.

However, these businesses have to continue their monthly payment of tax under the QRMP scheme.

Taxpayers have faced constant confusion due to the tricky structure of this scheme.

In this article, we have answered 20 most frequently asked questions about the QRMP Scheme under GST.

1

What is QRMP Scheme Under GST (Quarterly Returns with Monthly Payment)?

Answer: Under this scheme, eligible tax payers can file their returns quarterly while paying the tax monthly.

2

What is IFF (Invoice Furnishing Facility)?

Answer: Normally, credit is allowed to recipient if the supplier has filed his GSTR-1. But in case of QRMP scheme, taxpayer will not be able to show the outward supply, and the recipient will not be able to claim Input Tax Credit.

For this reason, the option of IFF(Invoice Furnishing Facility) is provided to such tax payers who have opted for QRMP scheme to file their details of outward supply monthly, so that the credit will be available to the recipient at the time of filing GSTR-3B and he will not have to bear the burden of tax every month till the end of quarter.

3

What is the eligibility for QRMP scheme?

Answer: Following taxpayers are eligible for QRMP scheme:

  1. Every taxpayer whose turnover (based on PAN) in current Financial Year and Preceding Financial Year is up to 5 crores.
  2. Must have filed latest due GSTR-3B.

4

What are the pre-requisites for opting QRMP scheme?

Answer: The taxpayer must fulfil following conditions before opting for QRMP scheme:

  1. The Aggregate Annual Turnover (AATO) of preceding and current F.Y should not exceed Rs. 5 crores.
  2. Taxpayer must be registered as a regular taxpayer. In case he was registered as a composite tax payer, he should first convert into regular taxpayer
  3. He should be having a valid user id and password
  4. He must have filed GSTR-3B for most recent tax period.
  5. He must not have saved any data on portal under form GSTR-1 for current period.

5

When can I opt-in or opt-out from QRMP scheme? How to opt -in or opt-out of QRMP scheme?

Answer: A taxpayer can opt-in or opt-out from QRMP scheme as below:

Sr. No

Quarter

Time limit to opt-in or opt-out

1

Q-1 (April to June)

1st feb to 30th April

2

Q-2 (July to September)

1St May to 31st July

3

Q-3 (October to December)

1st August to 31st October

4

Q-4 (January to March)

1st January to 31st January

  • Go to www.gst.gov.in
  • Login using valid credentials
  • Click on “Services”
  • Click on “Returns”
  • To opt-in Click on “opt-in”
  • To opt-out Click on “opt-out”

6

Can I opt for QRMP scheme for some specific PAN if I have multiple GSTIN on the same PAN?

Answer: A tax payer can opt for QRMP scheme for some GSTIN as per his choice, even if all of them are registered on same PAN.

7

If I am eligible for QRMP scheme, will the GST portal assign me QRMP scheme or do I have to select it?

Answer: If you have satisfied all the eligibility criteria of QRMP scheme, you will be directly assigned to QRMP scheme by GST portal.

You can opt-opt from the scheme as per the period specified. The option followed by you for current quarter will continue for the next quarter and so on.

8

GSTR-1 have been saved but filing of GSTR-3B is pending, can the QRMP scheme be availed now?

Answer: One of the pre-conditions to opt for QRMP scheme is that no data for current period should have been saved in Form GSTR-1.

If the taxpayer has filled any data in Form GSTR-1 and is wiling to opt for QRMP scheme, then he has to delete the data filed in Form GSTR-1, and then opt for QRMP scheme.

9

If I am newly registered as a Taxpayer under GST, can I opt for QRMP scheme under GST?

Answer: If the taxpayer got himself registered up to last day of 1st month of any quarter, and he is eligible, then he will be able to opt-in for QRMP scheme.

However, if he registers himself from second month and thereafter, he can opt-in from next quarter.

For Example, if a person gets himself registered up to 31st July, then he can opt in for July to September.

But if he registers from august onwards, then he can opt for QRMP scheme from next quarter i.e., October to December.

10

Once the QRMP scheme is opted in, do I have to follow it always?

Answer: It is at the discretion of the taxpayer that whether he wants to opt-in or opt-out.

But he has to opt in or opt out in the first month of any quarter.

And once the option is chosen for one quarter, it will continue for the next quarter also, but he can change it for the next quarter.

For example. If Mr. X opt-in for January to march quarter, he can opt-out for April to June quarter at his discretion.

11

What if after opting the scheme, Aggregate Average Turnover (AATO) crosses Rs. 5 Crore, then will the scheme be valid.

Answer: Once the AATO exceeds Rs. Crore in the financial year, the taxpayer will not be eligible for the scheme.

12

I have opted in for QRMP scheme for April to June but now I want to opt-out from the scheme, but the portal is not allowing me to do so?

Answer: Last day to opt-in or opt-out from QRMP scheme is last day of first quarter, post that, the taxpayer will not be able to change for the same quarter, if he wants to change it, he can do it only for the next quarter.

13

What is due date for furnishing details in Invoice Furnishing Facility (IFF)?

Answer: The due date to file IFF (Invoice Furnishing Facility) is 13th of next month. After that it will expire for the month.

For example, due date to furnish IFF for May is 13th June.

14

How can the payment be made for the first two months of the quarter?

Answer: Since it is Quarterly Returns and monthly payment scheme, there is no return filing for the period of two months, but payment has to be done monthly.

The payment is done through a challan named as Form GST PMT-06 for the 1st two months.

There are two ways by which the taxpayer can make the payment:

  • Portal will automatically generate a pre-filled challan and the taxpayer will directly make the payment.

    The amount will be calculated as follows:-

    If in preceding tax period, it was monthly frequency, amount equivalent to amount paid in last month.

    For example, if a taxpayer was having monthly frequency up to march 2021 and tax paid in march was 100000/-. through electronic cash ledger, then in April also, the challan will be generated for Rs. 100000/--

    If in preceding tax period, it was quarterly frequency, amount equivalent to 35% of amount paid in previous quarter.

    For example, if a taxpayer was having quarterly frequency up to march 2021 and tax paid in January to march was 150000/-. through electronic cash ledger, then in April also, the challan will be generated for Rs. 52500/- (150000*35%)
  • Self-assessment method, where in real tax payable will be paid by the taxpayer by calculating output tax liability and Input tax credit and the net amount will be paid.

15

If I have B2C supplies to the customers, do I have to disclose in IFF?

Answer: No, there is no requirement to disclose B2C (i.e., unregistered persons) supplies as IFF is to facilitate the ITC to its customer, and B2C suppliers are not eligible to take ITC for their inward supply

B2C is to be disclosed while filing GSTR-1 for the quarter.

16

How do I match IFF and GSTR-1 for the quarter?

Answer: For the quarter, the taxpayer will be provided Draft GSTR-3B which will have details based on GSTR-1 and Invoice Furnishing Facility

17

How can the ITC be claimed for the quarter?

Answer: ITC (Input Tax Credit) can be claimed for the quarter. For the first two month, no ITC will be allowed.

During GSTR-1 and 3B filing for the quarter, GSTR-2A and 2B will be generated which can be referred by the taxpayer to claim ITC.

18

What type of taxpayers are not eligible for return filing scheme as per QRMP?

Answer:  The taxpayers which are not eligible for QRMP scheme are:

  1. ISD
  2. NRTP
  3. Composition Dealer
  4. OIDAR service provider
  5. TDS Deductor
  6. TCS collector

19

In case it was quarterly filing in previous tax period, how will the tax payable be calculated if for current tax period QRMP scheme is opted?

Answer: Let us understand with the help of following example:

In previous quarter of Oct to Dec 2020, following was the amounts of tax paid:

Month

Tax Payable

Electronic Credit ledger

Electronic Cash Ledger

Oct

200000/-

100000/-

100000/-

Nov

200000/-

100000/-

100000/-

Dec

200000/-

100000/-

100000/-

Total

600000/-

300000/-

300000/-

Now if for Jan to March 2021 quarter, if the taxpayer opts for QRMP scheme,

then 35% of Total of Electronic cash ledger will be calculated in 1st two month, and balance will be paid in last month of quarter.

In Jan 2021: 300000*35%= 105000/-In Feb 2021:

also same as Jan i.e., 105000/-Suppose for the quarter it was 350000

Then for march balance of Rs (350000-105000-105000) 140000/- will be paid.

20

When will the GSTR-3B needs to be filed?

Answer: GSTR-3B needs to be filed on or before 22nd /24th day (depending on the State or Union territory) of next month of the quarter of which return is to be filed.

Example, For Jan to March 2021, GSTR-3B needs to be filed by 22/24 April.

The decision to opt for the Quarterly returns & Monthly Payment Scheme (QRMP) is a choice every business has to make.

QRMP Scheme has its benefits though it is a tedious process.In this article, we have tried to address your most common questions regarding the QRMP Scheme.

However, if we might have missed out on any of your queries, feel free to navigate through our other articles dedicated to the QRMP Scheme, here.


About the author

Hema is a Chartered Accountant who is having about Eight years of experience in taxation and accounting. She is in practicing as a Chartered Accountant since 2020. She is a writer by passion and thus shares her experience and knowledge through her articles at various platform. Predominantly her area of interest is GST. Since GST is a very new concept for India, every practitioner is looking for clarity in this area. She likes to share her experience with everyone and therefore tries to put them in form of articles. Apart from this, she is also well-worsed in Financial market.

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