Salient Features of the QRMP Scheme

Salient Features of the QRMP Scheme

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Salient Features of the QRMP Scheme

The Goods and Service Tax Network (GST) has announced the Salient features of Quarterly Return Monthly Payment QRMP Scheme vide a Notification dated 20.11.2020. The GST registered person having aggregate turnover of five crore rupees will be allowed to furnish return every quarter along with monthly payment of tax, with effect from 01.01.2021 by opting Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme. The current article briefs the Salient features of Quarterly Return filing and Monthly Payment of Taxes Scheme.

Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme

As a trade facilitation measure and to further ease the process of doing business the GST Council in its 42nd meeting held on 05.10.2020, had announced that registered person having aggregate turnover up to five crore rupees will be allowed to furnish return every quarter along with monthly payment of tax, with effect from 01.01.2021 by opting Quarterly Return filing and Monthly Payment of Taxes (QRMP) Scheme.

As mentioned above, a registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. It is clarified that the aggregate annual turnover for the preceding fiscal year will be calculated in the common portal considering the details furnished in the returns by the taxpayer for the tax periods in the preceding fiscal year.

Quarterly Return filing under the QRMP Scheme

As per the QRMP scheme, the person having aggregate turnover up to 5 crore rupees may be allowed to furnish return every quarter

Eligible Person for the QRMP scheme

Following registered person can file quarterly returns and pay tax every month with effect from 01.01.2021:

    • A Registered Person who is required to file Form GSTR 3B with Aggregate Annual Turnover (AATO) of up to Rs 5 Crore in the previous financial year is eligible under this scheme. If AATO crosses Rs 5 Cr. during a quarter, the Registered Person will become ineligible for the Scheme from next quarter.
    • Any person obtaining the new GST registration or opting out of the GST Composition Scheme can also opt for the Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme.
    • The option to avail of the QRMP Scheme can be availed in GSTIN or Goods and Services Tax Identification Number (GSTIN) wise. Therefore, few GSTINs for that PAN can opt for this Scheme, and remaining GSTINs can remain out of the Scheme

Changes on the GST Portal

For quarter January 2021 to March 2021, all GST Registered persons whose Aggregate Annual Turnover (AATO) for the financial year 2019-2020 is up to Rs 5 Crore and have furnished the return in Form GSTR-3B for October 2020 by 30.11.2020, will be migrated by default in the GST portal as follows:

Sl.No

Class of Registered Persons with AATO

Default Return Option

1 Up to Rs.1.5 Crore, who have furnished Form GSTR-1 on a quarterly basis in current Finical Year Quarterly
2 Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on monthly basis in current Finical Year Monthly
3 More than Rs 1.5 Crore and up to Rs 5 Cr. in preceding Finical Year Quarterly

Other Features of the QRMP Scheme

  • Quarterly Return Monthly Payment Scheme Facility can be availed throughout the year, in any quarter.
    • Option for QRMP Scheme, once exercised, will continue till the registered person revises the option or his Aggregate Annual Turnover exceeds Rs 5 Crore.
    • Registered Persons migrated by default can choose to remain out of the scheme by exercising their option from 05.12.2020 till 31.01.2021.

The person opting for the scheme can avail the facility of Invoice Furnishing Facility (IFF) so that the outward supplies to the registered person are reflected in their Form GSTR 2A and 2B.

Monthly Payment of Taxes under the QRMP scheme

The features of the Monthly Payment of Taxes (QRMP) Scheme under the QRMP scheme is as follows:

    • The registered persons need to pay the tax due in each of the first two months (by 25th of next month) in the Quarter, by selecting “Monthly payment for the quarterly taxpayer” as the reason for generating Challan.
    • The registered persons can either use the Fixed Sum Method (pre-filled challan) or Self-Assessment Method (actual tax due), for a monthly payment of tax for the first two months, after adjusting ITC.
    • No deposit is required for the month if there is a nil tax liability.
    • Tax deposited for the first 02 months can be used for adjusting liability for the quarter in Form GSTR-3B and can’t be used for any other purpose till the filing of return for the quarter

Please click on the official link to know more about the Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme

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