Your Complete Guide To Opt for QRMP Scheme

If you are a consistent taxpayer, then you must have come across the QRMP scheme. And if not, then this article is a must-read for you. The QRMP, also known as the Quarterly Returns With Monthly Payment scheme, is eligible for those taxpayers whose annual turnover is up to rupees 5 crore in a financial year and its preceding year. They should file their Form GSTR-3B and Form GSTR-1 returns quarterly while paying their due taxes monthly via challan.

Things to know the QRMP scheme

Only registered taxpayers are eligible for this QRMP scheme. The taxpayer is completely free to choose the scheme several times throughout the entire financial year for every quarter. The option for availing the QRMP scheme could be easily availed GSTIN wise. This means that on a single PAN, if there are multiple GSTIN and the person has fulfilled all the scheme’s conditions, then the individual can keep a few GSTIN for that particular PAN number. The remaining GSTIN can remain out of the particular QRMP scheme. Your last applicable GSTR3B form should be filled. Or else, this option won't be available for you. Also, you need to ensure that no data is saved in the GSTR1 form for the period applicable.

How to opt for the QRMP scheme?

Here are a few basic steps of opting for the QRMP scheme on the GST portal:

1. First, you need to log in to the GST portal.
2. Next, you need to navigate the service option and then go to the return option.
3. The next step is to go for opting in the quarterly return to opt-out or off from the QRMP scheme.
4. Next, you need to select the option quarterly for the particular quarter.
5. Again you have to click on the Save button.
6. The last and final step is to click on the ok button on the confirmation window.
7. You can also shift from one QRMP scheme to another until the window remains open. For instance, you can change from quarterly to monthly until the window is open at any point in time.

What is the channel for opting for the QRMP scheme?

The QRMP scheme could be easily opted for a quarter. The date range is from the 1st of the 2nd month of the previous quarter till the last day of the 1st month for which an individual wants to avail the scheme.

However, there is one condition. One needs to file the latest GSTR-3B return that is due on the date of exercise.

For instance, you want to opt for the quarter, July to Sep. You are initiating to exercise this option on the portal for the date 27th July, then the GSTR 3B that is due for filing in between 22nd, and 24th of July, must have been filed by the end of the last date, or else the option would be unavailable to you.

The timeline details for opting out or opting in of the QRMP scheme

Quarters of the QRMP Scheme opt-in/ opt-out duration:

Quarter 1 (Apr-Jun)- 1st Feb to 30th Apr

Quarter 2 (Jul-Sept)- 1st May to 31st July

Quarter 3 (Oct-Dec)- 1st Aug to 31st Oct

Quarter 4 (Jan-Mar)- 1st Nov to 31st Jan

How to pay tax under the QRMP scheme?

Here is a step-by-step process of paying tax under the QRMP scheme:

• The first step is to login into the GST portal
• The second step is to navigate to the Services menu and then go to the Payments option
• Next, you need to click on the Create challan option
• Now under ‘Reason for Challan’, you need to select the ‘Monthly payment for quarterly return’ option and then choose the financial year.
• Now you have to select the ‘35% challan’ under the challan type section (To pay tax through the 35% challan method) OR choose the ‘Challan on self-assessment basis’ option.
• Next, click on the ‘Proceed’ button.
• Your challan will be now auto-generated based on the previous periods’ GSTR-3B.

How can the QRMP scheme be beneficial for the taxpayer?

Here are some of the benefits of the QRMP scheme for the taxpayers:

1. GSTR1 form can be filed quarterly.
2. GSTR3B will also be a quarterly return option. Instead of 24 returns in a particular year, you can only file 8 returns which is a huge benefit to the taxpayer when it comes to time-saving.
3. For the first and second months of a particular quarter, you will also get the invoice directly on the portal.
4. Another good thing about the QRMP scheme is that invoices up to Rupees 50 lakh per month can be reported.
5. For the previous month, invoices can be uploaded from IFF from the 1st till the 13th of the upcoming months, reflected in the GSTR 2B and GSTR 2A forms of the recipient. The invoice furnished in ff for the first two months does not need to be furnished again in GSTR 1.
6. No late fee for the filing of the PMT-06 after the due date as against the late fee levied for the filing of the monthly GSTR3B after the due date under the regular scheme.
7. Under the fixed sum method, an individual can make easy or payment of the net cash liability.

Payment methods of Tax under the given QRMP scheme

There are two options for the monthly tax payment for the first two months:

1. Self-assessment method- The taxpayers can save easily per the tax by considering the liability on outward and inward supplies and the input tax credit availability in the form GST PMT-06. These are not only your sole options. You can select any of the options at any time for paying the due tax.
2. Fixed sum method- By logging into the portal, you can generate a pre-filled challan in the form of GST PMT-06. The Challan is equal to 35% of the tax paid in cash in the previous quarter or in the last month of the immediately preceding quarter.

Also Read:

1) How Can One Handle a Big Loss in a Business?
2) How does Employee Engagement Help Boost Business Performance?
3) How to Start a Furniture Export Business?
4) 6 Tips to get a loan for business while having bad credit

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FAQs

Q. What happens to the unutilized cash after filing the GSTR 3B quarterly?

Ans. The cash can be easily utilized later as a future liability. However, the cash deposited through the PMT-06 at any particular month cannot be directly utilized before filing the GSTR 3B quarterly.

Q. Can the new taxpayers opt for the QRMP scheme?

Ans. New taxpayers can opt for this QRMP scheme as per their business registration date.

Q. What are the late fee charges under the QRMP scheme?

Ans. The late fee isn’t applicable in the first 2 months or quarter. However, a late fee of Rs 5000 will be levied if there’s a delay in GSTR 3B return filing or GSTR1 form.