Table of Contents
Introduction:
The Quarterly Return Monthly Payment Scheme (QRMP) emerges as a strategic game-changer, providing businesses with a simplified approach to compliance. This scheme, designed to balance the needs of small taxpayers, offers a unique blend of flexibility and regularity. Quarterly Returns with Monthly Payment (QRMP) Scheme is for eligible taxpayers to file their Form GSTR-1 and Form GSTR-3B returns on quarterly basis, while paying their tax dues on monthly basis through a challan.
Section 1: Eligibility for the Quarterly Return Monthly Payment Scheme (QRMP)
All taxpayers whose aggregate annual turnover (PAN based) is up to Rs. 5 Crore in the current financial year and the preceding financial year (if applicable) and have already filed their last due Form GSTR-3B return, are eligible for the QRMP scheme. Persons applying for a fresh registration as Normal taxpayer are also eligible for Quarterly Return & Monthly Payment Scheme (QRMP).
Section 2: Features of Quarterly Return Monthly Payment Scheme (QRMP)
- Flexibility in Filing: Businesses under QRMP have the option to file their GST returns on a quarterly basis, reducing the frequency of compliance-related activities.
- Monthly Payment: Despite filing quarterly returns, businesses need to make monthly tax payments through the Challan in Form GST PMT-06. This ensures a regular inflow of revenue for the government.
- Input Tax Credit (ITC) Continuity: Unlike the Composition Scheme, businesses under QRMP can continue to claim Input Tax Credit on their eligible purchases, maintaining financial efficiency.
Section 3: How to Opt for Quarterly Return Monthly Payment Scheme (QRMP)
Eligible businesses can opt for the QRMP scheme while filing their GST returns. The option is available at the beginning of each quarter. Once opted in, the business remains in the scheme for the entire quarter and has the flexibility to switch back to monthly filing if needed.
You can opt in or opt out of the QRMP scheme as per the timelines mentioned in the table below:
| SL.No. | Quarter of a particular year | QRMP Scheme can be opted in or opted out during |
| 1 | Q1 (April – May – June) | 1st February’ to 30th April’ |
| 2 | Q2 (July – August – September) | 1st May’ to 31st July’ |
| 3 | Q3 (October – November – December) | 1st August’ to 31st October’ |
| 4 | Q4 (January – February – March) | 1st November’ to 31st January of next year |
Section 4: How to submit details of outward supplies in QRMP?
The taxpayers who opted for the QRMP scheme can use the Invoice Furnishing Facility(IFF), which allows quarterly GSTR-1 filers to upload their invoices every month. IFF stands for Invoice Furnishing Facility for taxpayers who have opted for QRMP scheme to declare outward supplies to a registered person for first two months of any quarter. The facility will be similar to Form GSTR-1. It allows filing for only B2B invoices, credit notes, debit notes etc. Last date of filing IFF for a month is the 13th of the next month. This will allow recipient taxpayers to take credit of these invoices in the same month, if reported in IFF, by the supplier taxpayer under QRMP scheme.
Section 5: Payments under the Quarterly Return Monthly Payment Scheme (QRMP)
The taxpayer has to deposit tax using form PMT-06 by the 25th of the following month, for the first and second months of the quarter. In order to make the payment, tax payer can use any one of these two methods namely,
- Fixed Sum Method (FSM) – The taxpayer must pay an amount of tax mentioned in a pre-filled challan in the form GST PMT-06 for an amount equal to 35% of the tax paid in cash.
Note – 1) Tax payer who furnished GSTR-3B quarterly for the last quarter is required to pay 35% of tax paid in cash in the preceding quarter
2) Tax payer who furnished GSTR-3B monthly during the last quarter is required to pay 100% of tax paid in cash in the last month of the immediately preceding quarter
- Self Assessment Method (SAM) – This is the existing method where a taxpayer can pay the tax liability by considering the tax liability on inward and outward supplies and the input tax credit available. The taxpayer has to manually arrive at the tax liability for the month and has to pay the same in form PMT-06.
Conclusion:
The Quarterly Return Monthly Payment Scheme is a testament to the government’s responsiveness to the needs of small taxpayers. QRMP is a initiative introduced by the GST Council, catering to businesses with an annual turnover of up to Rs. 5 crores. It harmonizes the process of filing returns and making payments, striking a balance between monthly and quarterly obligations
Disclaimer: The content and views stated in this article is solely for informational purpose only
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