QRMP Scheme:- Qualified taxpayers may complete Form GSTR-1 and Form GSTR-3B returns on a quarterly basis using the GST’s Quarterly Returns with Monthly Payment (or QRMP) system. Nonetheless, these taxpayers will pay their taxes each month using a challan.
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What is the QRMP Scheme?
Under the Goods and Service Tax (GST) system, the Central Board of Indirect Taxes and Customs created the Quarterly Return Monthly Payment Scheme, or QRMP Scheme. The GST system went into effect on January 1, 2021. With this facility, small business taxpayers can pay taxes on a monthly basis and file GST Returns at the end of each quarter. Before the program’s launch, taxpayers had to file the GSTR-1 and GSTR-3B on a monthly basis. They can now, however, submit reports on a quarterly basis.
You will need to file fewer returns each year if you do this. Additionally, there are two ways to pay taxes using the plan. The self-assessment technique and the fixed sum approach are these. But as this program is optional, each taxpayer is free to decide whether or not to use it.
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Significance of the QRMP Scheme
The purpose of the QRMP Scheme was to ease the burden of completing monthly tax returns and to assist taxpayers in operating their businesses more profitably. This is applicable to taxpayers whose prior fiscal year’s turnover did not exceed Rs. 5 crores.
The Central Board of Indirect Taxes & Customs, under the GST administration, has initiated this program to streamline small business tax payment and return submission procedures.
Several advantages, some of which are mentioned below, can they reaped from this program.
- As a result, taxpayers will have much fewer obligations—they will only need to file four GSTR-3B forms a year as opposed to twelve.
- This will make it easier to pay monthly taxes using a self-assessment or pre-filled challan during the first two months of the quarter.
- 365 days a year, taxpayers can use the portal to select when to opt infccfeazZSXDCGFVRV and opt out of this QRMP plan under the GST Quarterly Return plan.
- As a taxpayer, you are eligible for benefits under this scheme, including the Invoice Filing Facility (IFF). The IFF function may be used to file up to four GSTR-1 returns annually. During the first two months, you can also discharge your invoices on a quarterly basis.
- As a result, you can file the return at any time during the quarter without having to wait until the end. IFF also makes the process of claiming Input Tax Credits faster.
- In addition, as a result of this, computing your quarterly tax liability will be less expensive than under the prior monthly system.
Eligibility Criteria for the QRMP Scheme
The eligibility requirements for the QRMP Scheme are as follows:
- You must file a GSTR-3B return with a total turnover of up to Rs. 5 crores in the previous fiscal year in order to be eligible for the GST QRMP Scheme.
- Only those with the authorization to file Form GSTR-1 and Form GSTR-3B returns may avail themselves of this plan.
- It is necessary to file previous GSTR-3B returns correctly.
- It was not appropriate for the preceding fiscal year’s total turnover to surpass Rs. 5 crores. Otherwise, the QRMP Scheme will not be available to you in the future.
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How Does the GST QRMP Scheme Work?
Using the QRMP Scheme for quarterly GST returns involves the following steps:
- Visit the GST website to learn more about the goods and services tax.
- Choose the QRMP Scheme, which stands for Quarterly Return Monthly Payment.
- To log in, click the login button and enter your credentials.
- The “Services” tab should be clicked.
- Choose ‘Returns’.
- Choose the quarterly return option lastly.
You need to realize how to pay taxes in step with the camp program after you have enrolled in it. making tax bills includes the following steps:
- Visit the goods and offerings tax website under the authorities’ supervision.
- Log in to the internet site along with your credentials.
- Pass through the ‘alternatives’ segment to get the right of entry to the dashboard.
- Proceed to payments and then choose the “create challan” choice after retrieving the dashboard.
- Select “month-to-month price for quarterly go back” underneath “reason for challan” after navigating to that place. click “continue” after choosing the time, monetary year, and sort of challan.
- One must pick the “35% challan” and “challan on self-evaluation basis” options if they’re employing the constant sum method and self-evaluation strategies, respectively.
- Decide on a price alternative, then continue to pay.
Input Tax Credit Claims under QRMP Scheme
A registered individual who chooses to participate in the QRMP system does not need to follow any different procedures in order to claim their Input Tax Credit (ITC). For the first two months of the quarter, QRMP taxpayers who are utilizing the self-assessment technique to compute their tax payments may take into account the ITC that is available based on their GSTR-2B for that month. As a result, they are able to settle their GST bill in full with cash.
However, when the quarterly GSTR-1 is filed, the GSTR-2B for the quarter is generated on the 14th of the month that follows the quarter. As a result, in order to make an ITC claim, purchasers who work with suppliers under the QRMP scheme must consult the quarterly GSTR-2B.
Interest in the QRMP scheme
The following is how the interest will be applied if the taxpayer selects one of the alternatives listed:
The 35% Challan Method, also referred to as the Fixed Sum Method (FSM):
| S No | Scenario | Interest to be paid |
| 1 | The tax liability indicated on the GST PMT-06 pre-filled form must be paid by the next month’s 25th. | Nil |
| 2 | The tax liability indicated on the pre-filled GST PMT-06 form is not paid before the next month’s 25th. | 18% of the taxable amount (from the 26th of the subsequent month till the payment date) |
| 3 | The amount paid using the pre-filled GST PMT-06 form is less than or equal to the final tax liability for the first two months. | Nil |
| 4 | The tax amount paid using the pre-filled form GST PMT-06 is less than the ultimate tax liability for the first two months, and this excess liability has not been paid by the quarterly GSTR-3B due date. | Nil |
| 5 | The tax amount paid using the pre-filled form GST PMT-06 is less than the ultimate tax liability for the first two months, and this excess liability has not been paid by the quarterly GSTR-3B due date. | 18% of the taxable amount (from the date of the GSTR-3B due date* until the payment date) |
The late fee under the QRMP scheme
If the quarterly GSTR-3B is not filed by the deadline, the following late fee, up to a maximum of Rs 5,000, has to be paid:
| Name of the Act | Late fee for everyday of delay | Late fee for every day of delay(in case of ‘Nil’tax liability) |
| CGST Act | Rs.25 | Rs.10 |
| SGST Act | Rs.25 | Rs.10 |
| IGST Act | Rs.50 | Rs.20 |
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FAQ’s
Q. When is the payment deadline for the QRMP scheme?
Ans- By the 25th of the following month, the taxpayer must have paid the tax owed in Form GST PMT-06 for each of the first two months of the quarter.
Q. What is the QRMP scheme’s payment method?
Ans- For each of the first and second months of the quarter, the taxpayer must deposit tax using form PMT-06 by the 25th of the subsequent month. The taxpayers have two options for paying their monthly tax liability: the Assessment Method (SAM) or the Fixed Sum Method (FSM), which is also known as the 35% Challan method.
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