New QRMP Scheme under GST

1. What is the QRMP Scheme?

QRMP (Quarterly Return Filing and Monthly Payment of Taxes) Scheme has been implemented by the Government in order to ease the process of doing business by small taxpayers. As the name suggests, it is a scheme in which the taxpayer has an option to file Returns on quarterly basis along with monthly payment of taxes. The Scheme is applicable from the 1st quarter of 2021 i.e. from 01.01.2021.

2. Who can opt for the QRMP Scheme?

● A registered person having annual aggregated turnover of up to Rs 5 crore in the preceding Financial Year can opt for the Scheme. For example, for opting for quarter January to March 2021, Annual aggregated turnover of FY 2019-20 will be considered. Also, the Aggregated Turnover will be calculated as per the Returns filed by the Registered person for that Financial Year.

● Any person who is obtaining new registration can opt for the Scheme.

● Any person who is opting out of the Composition Scheme can also opt for QRMP Scheme.

3. When can a registered person opt for the Scheme?

● A registered person can opt for the Scheme from the first day of the second month of the preceding quarter to the last day of the first month of the quarter. For example, in order to opt for quarter April to June, the registered person can opt from 01st February to 30th April.

● In order to opt for the scheme, the registered person must have furnished the last return as due on the date of exercising this option.

● For the 1st quarter of the Scheme i.e. for January to March 2021, the Government has decided to migrate all the taxpayers having aggregated turnover of up to Rs 5 crore in FY 2019-20 and who have furnished their GSTR-3B for October 2020 up to 30th November 2020 as below:

However, the registered person can change their default option from 05th December 2020 to 31st January 2021.

4. What is the IFF under the QRMP Scheme?

● IFF (Invoice Furnishing Facility) is a facility provided in order to furnish the details of outward supplies for the first and second month of the quarter on a monthly basis. This facility is an optional facility. A registered person may furnish the details of all the outward supplies made in the quarter in GSTR-1. However, if he wants to furnish the details of outward supplies on a monthly basis, he can do so through IFF.

● The registered person can furnish the details of outward supplies for the first two months of the quarter from 1st till 13th of the succeeding month i.e. for the invoices of January 2021, the facility to furnish the Invoices will be available from 01st February 2021 till 13th February 2021.

● The details of outward supplies furnished by the registered person will get reflected in the Form GSTR 2A and Form GSTR 2B of the concerned recipient.

● However, the maximum value of outward supplies that can be furnished through IFF is Rs 50 lakhs in each month.

5. How to calculate and deposit the amount of tax on a monthly basis?

● The taxpayer can deposit the tax on a monthly basis via GST PMT-06 till 25th of the succeeding month by selecting “Monthly payment for quarterly taxpayer” as a reason for generating Challan.

● There are two methods available for calculating the tax amount to be deposited on a monthly basis. The taxpayer can choose any of the below methods :

1. Fixed Sum Method: In this method, a pre-filled Challan will get generated in Form GST PMT-06 in which the amount of tax will be as follows :

35% of the tax paid in cash in preceding quarter where the return was furnished quarterly;

And 100% of the tax paid in cash in the last month of the immediately preceding quarter where the return was furnished monthly.

2. Self- Assessment Method: In this method, the taxpayer himself calculates the tax amount on the basis of tax on outward supplies and ITC available for the month. In order to ascertain ITC for the month, an auto drafted ITC Statement will be generated in the Form GSTR-2B every month on the basis of IFF furnished by the suppliers.

FAQs :-

1. When will a registered person mandatorily opt out of the QRMP Scheme?

A registered person shall mandatorily opt out of the QRMP Scheme if in any quarter during the Financial Year, his Annual aggregated turnover for the Financial Year exceeds Rs 5 crore.

2. Whether the QRMP Scheme is applicable on a PAN basis?

No, QRMP Scheme is applicable on GSTIN basis i.e. distinct persons (different GSTINs on same PAN) can opt for QRMP scheme for 1 or more GSTIN. It is not mandatory to opt or not to opt for all the GSTINs of a Registered Person.

3. Whether a registered person has to exercise the option separately for each quarter?

No, the registered person does not have to exercise the option separately for each quarter. The option once exercised will continue until he opts out of the Scheme or his turnover exceeds Rs 5 crore in the current Financial Year.

4. Is it mandatory for a registered person opting for QRMP Scheme to furnish monthly details of outward supplies through IFF?

No. IFF is not mandatory, it is an optional facility provided to the registered persons opting for QRMP Scheme.

5. Whether a taxpayer can claim a refund of the tax amount deposited in the first two months of the quarter?

Yes, a registered person can claim refund of the excess tax deposited in the first two months of the quarter. However, the refund can be claimed only after furnishing GSTR-3B of the respective quarter.

6. What is the due-date of filing GSTR-3B quarterly?

The due date of filing GSTR-3B is 22nd or 24th day of the month succeeding the quarter depending on the State to which the taxpayer belongs to.