What is the QRMP scheme?
The QRMP (Quarterly Return Monthly Payment) scheme is a new GST return filing system implemented by the Indian government for small taxpayers with a turnover of up to Rs. 5 crores. Under this scheme, taxpayers file their GST returns quarterly instead of monthly. However, they need to make monthly payments of their GST liability.
The QRMP scheme aims to reduce the compliance burden on small taxpayers by simplifying the return filing process and providing them with greater flexibility in managing their cash flows. It is voluntary, and taxpayers can opt-out of the scheme if they wish to file their GST returns monthly.
Why is the QRMP scheme important?
The QRMP scheme, which stands for "Quarterly Return Monthly Payment," is important because it simplifies the process of tax compliance for small taxpayers who have a turnover of up to Rs. 5 crores ($670,000) annually. Under the QRMP scheme, taxpayers file their GST returns quarterly but make monthly payments towards their tax liability.
Before the introduction of the QRMP scheme, small taxpayers were required to file monthly returns, which was a cumbersome process that often led to errors and delays. The QRMP scheme simplifies this process and reduces the compliance burden on small taxpayers, allowing them to focus on their core business activities.
Furthermore, the QRMP scheme helps improve the cash flow of small businesses as they do not have to pay their entire tax liability at the end of the quarter. Instead, they can make monthly payments, which makes it easier for them to manage their finances.
Overall, the QRMP scheme is an important initiative that aims to simplify the tax compliance process for small taxpayers and improve their cash flow.
Criteria for the QRMP scheme
The QRMP scheme, or the Quarterly Return Monthly Payment scheme, is available for taxpayers who have a turnover of up to Rs. 5 crores ($670,000) annually. To be eligible for the scheme, taxpayers must meet certain criteria, which are as follows:
- The taxpayer must be registered under the Goods and Services Tax (GST) Act.
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- The taxpayer must have a turnover of up to Rs. 5 crores in the previous financial year.
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- The taxpayer must not have any outstanding tax liabilities.
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- The taxpayer must not have any pending GST returns for the previous tax periods.
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- The taxpayer must have a valid and active GSTIN (GST Identification Number).
If a taxpayer meets all the above criteria, they can opt for the QRMP scheme and file their GST returns quarterly while making monthly tax payments. It is important to note that once a taxpayer opts for the QRMP scheme, they cannot switch back to the regular monthly return filing scheme until the end of the financial year.
When to avail the QRMP scheme and submit returns
Taxpayers who are eligible for the QRMP (Quarterly Return Monthly Payment) scheme can opt for the scheme at the beginning of each quarter. The scheme is optional, and taxpayers can choose whether or not to opt for it.
Once a taxpayer has opted for the QRMP scheme, they must file their GST returns quarterly and make monthly payments towards their tax liability. The due dates for filing GST returns under the QRMP scheme are as follows:
- For the January to March quarter: the due date for filing the quarterly return (GSTR-1 and GSTR-3B) is April 30th of the next financial year.
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- For the April to June quarter: the due date for filing the quarterly return (GSTR-1 and GSTR-3B) is July 31st of the same financial year.
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- For the July to September quarter: the due date for filing the quarterly return (GSTR-1 and GSTR-3B) is October 31st of the same financial year.
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- For the October to December quarter: the due date for filing the quarterly return (GSTR-1 and GSTR-3B) is January 31st of the next financial year.
It is important to note that taxpayers who have opted for the QRMP scheme must make monthly payments towards their tax liability by the 25th of each month. The payment can be made through the GST portal or any authorized bank or payment gateway.
How to avail the QRMP scheme
To avail the QRMP (Quarterly Return Monthly Payment) scheme, taxpayers must follow the below-mentioned steps:
- Login to the GST portal using their registered credentials.
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- Navigate to the 'Services' section and click on the 'Opt-in for Quarterly Return' option.
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- Choose the relevant financial year for which the taxpayer wishes to opt for the QRMP scheme.
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- Review the details and confirm the opt-in for the QRMP scheme.
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- Once the opt-in is confirmed, the taxpayer will be able to file their GST returns quarterly while making monthly payments towards their tax liability. It is important to note that taxpayers can opt for the QRMP scheme at the beginning of each quarter. Also, once a taxpayer has opted for the QRMP scheme, they cannot switch back to the regular monthly return filing scheme until the end of the financial year.
Payment of taxes under the QRMP scheme
Under the QRMP (Quarterly Return Monthly Payment) scheme, taxpayers are required to make monthly payments towards their tax liability. The payment of taxes under the QRMP scheme can be made through the following steps:
- Log in to the GST portal using the registered credentials.
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- Click on the 'Services' tab and select the 'Payments' option.
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- Select the 'Create Challan' option to initiate the payment process.
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- Enter the amount of tax liability to be paid for that month and select the mode of payment.
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- Once the payment is made, a Challan Identification Number (CIN) will be generated, which should be kept as proof of payment.
It is important to note that taxpayers who have opted for the QRMP scheme must make monthly payments towards their tax liability by the 25th of each month. The payment can be made through the GST portal or any authorized bank or payment gateway.
In case of any discrepancies in the tax liability, taxpayers can make adjustments in the subsequent monthly payments or adjust the amount in the quarterly returns. It is advisable to review the payment details and confirm the correctness of the amount before making the payment to avoid any penalties or interest charges.
