Understanding the Quarterly Returns with Monthly Payment (QRMP) Scheme under GST
The Quarterly Returns with Monthly Payment (QRMP) Scheme is a government initiative aimed at simplifying the GST filing process for eligible taxpayers. Here’s a breakdown of how it works in simple terms:
What is the QRMP Scheme?
The QRMP Scheme allows eligible taxpayers to file their GST returns on a quarterly basis while making monthly tax payments. This means less frequent filing and smoother cash flow management for businesses.
Who Can Participate?
To be eligible for the QRMP Scheme, your annual turnover should be up to ₹5 Crore. You should have already filed your last due Form GSTR-3B return.
How to Opt-In?
To opt into the QRMP Scheme, log in to the GST portal and go to Services > Returns > Opt-in for Quarterly Return option. It’s that simple!
What is the Invoice Furnishing Facility (IFF)?
For those under the QRMP Scheme, the Invoice Furnishing Facility (IFF) allows you to declare outward supplies to a registered person for the first two months of any quarter. This helps in smooth reporting of invoices and credit notes.
Methods of Monthly Tax Payments
- Fixed Sum Method or 35% Challan Method: Pay 35% of the tax paid in the last quarter by the 25th of the following month.
- Self-Assessment Method: Calculate your tax liability based on supplies made and claimed Input Tax Credit (ITC) and pay the resulting net amount.
Opt-In and Opt-Out Timelines
You can opt in or out of the QRMP Scheme during specific timelines:
- 1st Quarter: February 1st to April 30th
- 2nd Quarter: May 1st to July 31st
- 3rd Quarter: August 1st to October 31st
- 4th Quarter: November 1st to January 31st of the next year
Multiple GSTINs
If you have multiple GSTINs, you can choose the QRMP Scheme for specific ones and opt out for others registered under the same PAN.
Conclusion
The QRMP Scheme makes GST compliance easier for small businesses by offering quarterly returns and monthly payments. With clear guidelines and timelines, businesses can manage their taxes more efficiently. The Invoice Furnishing Facility (IFF) further streamlines the reporting process, reflecting government efforts to create a taxpayer-friendly GST regime.
