QRMP scheme issued by the Central Board of Indirect Taxes & Customs (CBIC) under Goods and Services Tax (GST) helps small taxpayers those turnover are upto Rs.5 crores. The QRMP scheme provides to the taxpayers to file a return GSTR-3B on a quarterly basis and pay tax every month.
1. Quarterly Return i.e. QRMP Scheme and Monthly Payment – At Glance
|Eligibility||Taxpayers having aggregate turnover of upto Rs 5 crore rupees in the preceding Financial year.|
|Exercising option||Taxpayer can opt in any quarter from first day of second month of preceding quarter till the last day of first month of the current quarter|
|Criteria||Taxpayer must have furnished the last return, as due on the date of exercising option|
|Option once exercised||Taxpayers are not required to exercise option, every quarter shall furnish, unless revise option.|
2. What is the QRMP (Quarterly Return & Monthly Payment) scheme?
GST Council in its 42nd Meeting held on 5th October 2020, recommended that every taxpayer having annual aggregate turnover upto INR 5 Crores during preceding year should be allowed to File both GSTR-3B and GSTR-1 on quarterly basis. However, tax payment should be made on a monthly basis through a challan. Such scheme should be implemented from 1st January 2021.
Considering the recommendation of GST Council, government introduced new QRMP scheme for filing of GST returns with effect from 1st January 2021. This scheme allows eligible taxpayers to file GSTR-1 and GSTR-3B on quarterly basis. However, requirement to pay GST is still monthly
3. Who is eligible to opt for the QRMP scheme?
All taxpayers are not permitted to file return under QRMP Scheme. A person shall become eligible to opt for QRMP Scheme, if he satisfies following conditions:
- Aggregate turnover during preceding year and current year should not exceed INR 5 Crores. If aggregate turnover during any quarter of the current year exceeds INR 5 Crores, then the person shall become ineligible for the QRMP scheme from the following quarter.
E.g. If during July to September, aggregate turnover of any person exceeds INR 5 crores then such person shall not be allowed to file returns under QRPM from quarter starting from October.
- To opt for the QRMP scheme, Person must have already filed the last GSTR-3B as on the date of opting for QRMP Scheme for any quarter. (To be discussed later on)
Therefore, a newly registered person or person who has opted out of composition scheme is entitled to opt for QRMP Scheme.
4. How to exercise the option of QRMP Scheme?
4.1 For Existing Registered Persons from January to March, 2021 Quarter
For all registered persons having aggregate Annual Turnover (Turnover of all PAN during FY 2019-20), and those who have filed GSTR-3B for the month of October, 2020 till 30th November, 2020, the system has automatically put it under QRMP Scheme.
However, such registered persons may opt out of the QRMP scheme, by 31th January, 2021 for the quarter of January to March, 2021.
Therefore, various registered persons have received following message from GST portal on registered mobile number:
“Dear GSTIN, as per QRMP Scheme you are defaulted to file your GSTR-1 and 3B on quarterly basis from Jan-Mar 21. To Change please visit www.gst.gov.in”
Further, those taxpayers who have not filed GSTR-3B of October, 2020 till 30th November, 2020, are not put under QRMP scheme by system automatically. Therefore, they can file their GSTR-3B and opt for QRMP scheme by 31st January, 2021.
4.2 For newly registered person and for Future quarters
Option to opt for QRMP Scheme is available online on GST portal. Same can be exercise post login at GST portal at Services > Returns > Opt-in for Quarterly Return.
Every person who wish to opt for QRMP Scheme, should exercise the option at GST portal from the 1st of the second month of the preceding quarter until the last day of the first month of the quarter for which such option is being exercised. Accordingly, following are time limits for exercising option:
|Quarter||Time period during which QRMP Scheme can be opt in or Opt out|
|April, 2021 to June, 2021||1st February, 2021 to 30th April, 2021|
|July, 2021 to September, 2021||1st May, 2021 to 31st July, 2021|
|October, 2021 to December, 2021||1st August, 2021 to 31st October, 2021|
|January, 2022 to March, 2022||1st November, 2021 to 31st January, 2022|
A person can opt in or opt out during the above mentioned period and final status as on last day of the first month shall be final.
5. How a newly registered person will opt for QRMP Scheme?
If a person obtains GST registration during 1st Month of the quarter then he can opt for QRMP for such quarter by end date of such month. Otherwise, for the first quarter, such person is required to file GSTR-1 and GSTR-3B under regular scheme and he can opt for QRMP for the following quarter by the due date.
E.g. A person obtains GST registration on 15th January, 2021. Then such a person can opt for QRMP scheme for January to March, 2021 quarter by 31st January, 2021. However, a person obtaining registration after January, 2021 shall be required to file GSTR-1 and GSTR-3B till March, 2021 under regular scheme. He can opt for the QRMP scheme from April, 2021 onwards.
6. What is the frequency of GSTR-1 and GSTR-3B filing if a person opts out of the QRMP Scheme?
Once the registered person has opted for quarterly filing, he will have to continue to furnish his return under QRMP Scheme for all future tax periods, except in the following situations:
- Till taxpayer becomes ineligible for furnishing return under QRMP Scheme, i.e., his aggregate turnover during the year exceeds INR 5 Crores.
- A person willingly opt out of QRMP Scheme.
All persons other than opting for QRMP Scheme need to file GSTR-1 and GSTR-3B on monthly basis. Therefore, if a person was filing GSTR-3B on monthly basis and GSTR-1 on quarterly basis and he opts out of QRMP Scheme, then he will be required to file both GSTR-1 and GSTR-3B on monthly basis.
7. Are there any important points to be considered for opting in or out of QRMP Scheme?
- Taxpayer can’t change his option for two consecutive quarters. The option selected in the current quarter will be set as the default option for the subsequent quarters.
- If a taxpayer has saved some data in GSTR-1 of the same month then he can’t opt for QRMP scheme, but can opt after deleting the data from the GSTR-1.
- If taxpayers opt for the QRMP scheme and not choose any option then both Form GSTR-1 and Form GSTR-3B will be required to be filed at quarterly frequency by default. However, Payment needs to be made every month for tax dues on monthly basis through a challan.
8. What is the New Invoice Furnishing Facility (IFF) under QRMP Scheme?
8.1 Issue under existing regime
In the existing scheme, the registered persons having an aggregate annual turnover of upto Rs. 1.5 crores during preceding year and current year are given an option of filing their GSTR-1 on quarterly basis.
However, due to quarterly filing of GSTR-1 by such person, various registered buyers are not able to claim Input Tax credit of GST paid by them due to non-reflection of ITC in their GSTR-2A & GSTR-2B of such month. E.g., a person buys goods from a registered person, who has opted for quarterly filing of GSTR-1, in July, 2020. However, ITC in GSTR-2A of buyer shall reflect after September, 2020 (when supplier files his GSTR-1 for the quarter of July to September, 2020). Therefore, as per Rule 36(4), he will be entitled to take this credit in month of filing of GSTR-1 of supplier.
Such recipients of goods or services, including some big corporates or dealers, have become reluctant to purchase their goods or services from such small registered persons who have opted for quarterly filing GST Returns. Their cash outflow increases due to the non-reflection of their corresponding ITC in their GSTR 2A/2B. This scenario has made the filing of GSTR-1 on quarterly basis redundant.
8.2 Solution under QRMP Scheme
The registered persons opting for the QRMP Scheme would have an option to furnish the details of outward supply on GST portal on monthly basis.
For each of the first and second months of a quarter, such a registered person will have the IFF facility on optional basis to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month.
Outward supplies shall, however, not exceed the value of fifty lakh rupees in each month. It may be noted that after 13th of the month, this facility for furnishing IFF for previous month would not be available.
The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.
9. What is the Frequency of filing of GSTR-1 and GSTR-3B under QRMP Scheme?
It is not that under QRMP Scheme, both GSTR-1 and GSTR-3B are to be filed on quarterly basis. Under QRMP Scheme, option to file both returns are available on either Monthly or Quarterly basis. Every time a registered person is opting for QRMP scheme, he need to select whether he opt for monthly filing of return or quarterly filing.
Following is the screen shot of dashboard appearing of QRMP scheme:
- For monthly filing of return under QRMP Scheme:
- For quarterly filing of return under QRMP Scheme:
10. What is frequency of filing of return for registered person migrating under QRMP Scheme from 01.01.2021?
For existing taxpayers who are by default put under QRMP scheme, system has set following frequency of return filing:
|Class of Taxpayers (Aggregate Annual Turnover during preceding F.Y.)||Default option of filing GSTR-1 and GSTR-3B under QRMP Scheme|
|Upto INR 1.50 Crores, registered person has opted to file GSTR-1 on monthly basis||Monthly|
|Upto INR 1.50 Crores, registered person has opted to file GSTR-1 on quarterly basis||Quarterly|
|More than INR 1.50 Crores and Upto INR 5 Crores||Quarterly|
11. How to submit details of outward supplies in QRMP Scheme?
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. It can be use only when a taxpayer whose turnover is up to Rs.1.5 crore.
Following points in mind before utilizing the IFF:
- The IFF can be utilized only for the first two months of a quarter.
- The invoices relating to the last month of a quarter are to be uploaded in the GSTR-1 return only.
- There is no requirement to upload invoices in GSTR-1 if the same has been uploaded in the IFF.
- The taxpayer has to submit the B2B invoice details of sale transactions (both inter-state and intra-state) along with debit and credit notes of the B2B invoices issued during the month.
- The total net value of invoices that can be uploaded is restricted to Rs.50 lakh per month.
- The details submitted in IFF will be reflected in the GSTR-2A, GSTR-2B, GSTR-4A or GSTR-6A of the recipients as the case may be.
- The Invoice Furnishing Facility will come into effect from 01.01.2021.
12. How to make monthly tax payments under the QRMP scheme?
The taxpayer has to deposit tax using form GST PMT-06 by the 25th of the following month, for the first and second months of the quarter.
Taxpayers can pay their monthly tax liability in following methods –
12.1 Fixed Sum Method (FSM) under QRMP
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.
|Type of Taxpayer||Who furnished GSTR-3B quarterly for the last quarter||Who furnished GSTR-3B monthly during the last quarter|
|Tax to be paid||35% of tax paid in cash in the preceding quarter||100% of tax paid in cash in the last month of the immediately preceding quarter|
12.2 Self-Assessment Method (SAM)
Taxpayers 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 GST PMT-06.
For ascertaining the amount of ITC available for the month the taxpayer can use form GSTR-2B. There are certain instances where no amount may be required to be deposited, such as –
- For the first month of the quarter – where the balance in the electronic cash/credit ledger is adequate for the tax liability of the said month OR where the tax liability is nil.
- For the second month of the quarter – where the balance in the electronic cash/credit ledger is adequate for the cumulative tax liability for the first and second months of the quarter OR where the tax liability is nil.
- A registered person will not be eligible for the said procedures unless he has furnished the return for the complete tax period preceding such month.
- A complete tax period is a tax period where the said person is registered from the first until the last day of the tax period
13. Frequently Asked Question (FAQ)
13.1 Whether the option to avail the QRMP Scheme is GSTIN wise?
Yes, the option to avail the QRMP Scheme is GSTIN wise, once it is exercised it would be valid for future tax periods. Therefore, a person may opt for QRMP scheme for one GSTIN and may continue to file return for another GSTIN under regular scheme.
13.2 How to get enrol in this scheme, whether the eligible person can migrate directly?
To avail the benefit of this scheme, it has been clarified that all the registered persons, whose aggregate turnover for the FY 2019-20 is up to Rs 5 crore and who have furnished the return in Form GSTR-3B for the month of October 2020 by 30th November 2020, shall be automatically migrated on the common portal.
13.3 How to make Monthly Payment of Tax and what is the due date of payment?
The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by depositing the due amount in Form GST PMT-06 and the amount of tax shall be deposited by the 25th day of next month.
13.4 What is the due date for the registered person opting for Quarterly Filing of GSTR-3B?
The registered persons opting for the QRPM Scheme would be required to furnish Form GSTR-3B, for each quarter, on or before 22nd or 24th day of the month succeeding such quarter, as the case may be.
13.5 When and how a registered taxpayer can opt Out of this Scheme?
The facility for opting out of the Scheme for a quarter will be available from first day of second month of preceding quarter to the last day of the first month of the quarter.
It is also clarified that such registered person, whose aggregate turnover crosses 5 crore rupees during a quarter in current financial year, shall opt for furnishing of return on a monthly basis from the succeeding quarter.