Answer By law4u team
The QRMP (Quarterly Return Filing and Monthly Payment) Scheme under GST is designed to simplify compliance for small taxpayers. It allows eligible businesses to file GSTR-3B quarterly instead of monthly, while still making monthly tax payments. This scheme reduces the compliance burden for small taxpayers by reducing the frequency of return filing. 1. Who is Eligible for the QRMP Scheme? Businesses with an aggregate annual turnover up to ₹5 crore in the previous financial year. The scheme is optional and can be availed by taxpayers who file GSTR-1 and GSTR-3B. It is not available to taxpayers who are required to deduct TDS/TCS, non-resident taxable persons, or those filing returns under special provisions (such as ISD or composition scheme). 2. How Does the QRMP Scheme Work? The scheme follows a quarterly filing, monthly payment approach: A. Quarterly Filing of GSTR-3B and GSTR-1 Taxpayers file GSTR-3B once every quarter instead of monthly. GSTR-1 filing frequency depends on taxpayer preference: Monthly (Invoice Furnishing Facility - IFF) for the first two months of the quarter (optional). Quarterly for the entire period. B. Monthly Payment of Tax (Using Form GST PMT-06) Even though GSTR-3B is filed quarterly, taxpayers must pay GST monthly. Taxpayers can choose between two methods for tax calculation: Fixed Sum Method (FSM): Pay 35% of the tax liability of the previous quarter (for normal taxpayers). Self-Assessment Method (SAM): Calculate actual tax based on outward and inward supplies and pay accordingly. C. Invoice Furnishing Facility (IFF) (Optional Feature for B2B Transactions) Allows taxpayers to upload B2B invoices for the first two months of the quarter. Helps buyers claim input tax credit (ITC) earlier without waiting for quarterly GSTR-1 filing. Not mandatory—if not used, all invoices are reported in the quarterly GSTR-1. 3. Advantages of the QRMP Scheme Reduced Compliance Burden: Instead of filing 12 GSTR-3B returns annually, taxpayers need to file only 4. Flexibility in Tax Payment: Taxpayers can choose between a fixed sum or self-assessment method. Improved Cash Flow Management: Since returns are filed quarterly, compliance costs are lower. Early ITC Availability for Buyers: Through the IFF, buyers can claim ITC without waiting for the quarter to end. 4. How to Opt for the QRMP Scheme? Taxpayers can opt for the scheme online through the GST portal under "Services > Returns > Opt-in for Quarterly Return." The option can be selected at the beginning of every quarter (before the first month ends). If a taxpayer crosses the ₹5 crore turnover limit, they are automatically removed from the scheme. 5. Due Dates Under the QRMP Scheme GSTR-1 (Quarterly): 13th of the month following the quarter. GSTR-3B (Quarterly): 22nd or 24th of the month following the quarter (depending on the state). IFF (Optional - Monthly B2B Invoices): 13th of the following month. Tax Payment (Monthly - Form PMT-06): By the 25th of the following month. 6. Key Points to Remember Late fees apply for delayed quarterly GSTR-3B or GSTR-1 filings. No late fees for missed IFF filings, but ITC for buyers may be delayed. Taxpayers can switch in and out of QRMP at the beginning of each quarter. Conclusion The QRMP scheme is a beneficial compliance option for small taxpayers, reducing the number of returns while ensuring timely tax payments. It provides flexibility in tax payment methods and helps businesses manage cash flow efficiently.
