\Hello Reader,

There is lot of buzz going on related to new GST return scheme and lot of confusion is there among all, lets discuss the concept of QRMP scheme under GST return.



To watch out the video on QRMP click here

What is QRMP Scheme of GST Return?

  • QRMP Scheme of GST return is completely new initiative by government to make return more flexible with option to file quarterly return with month payment option
  • Notification issued by CBDT during November 2020 related to QRMP Scheme.
  • As per notification taxpayer having turnover upto 5 crore can opt for QRMP scheme.
  • This is will be effective from Jan 2021 return (Quarterly basis)

Eligibility for  QRMP Scheme?
  • A registered Tax payer having turnover upto 5 core during previous financial year (From FY 2020-21) may opt for QRMP Scheme (Effective from Jan 2021). Who opt for QRMP Scheme need to file quarterly GSTR3B return but payment need to be done monthly.
  • The aggregate annual turnover for the preceding financial year shall be calculated on the common portal taking into account the details furnished in the return by the taxpayer for the tax period in the preceding financial year.
  • In case the aggregate turnover exceed 5 Crore rupees during any quarter during any quarter in the current financial year then registered person shall not be eligible for the QRMP scheme form the next quarter.

Who can avail for  QRMP Scheme?

Option to file GSTR 3B on a quarterly basis can be availed any time during the year from the 1st day of the

second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised.

Example: For Oct’21 to Dec’21 quarter, taxpayers can avail this scheme from 1st Aug’21 till 31st Oct’21.

And if he is availing the same on 27th August returns due on 22nd / 24th should be filed


Validity of  QRMP Scheme?

The taxpayer continues to fall under the QRMP scheme once the have opted for the same. Registered Taxpayer becomes in-eligible for QRMP Scheme in following cases

  • Turnover cross the specified limit during financial year.
  • Taxpayer voluntary opt out from QRMP Scheme.

How will QRMP Scheme will work?

  • Tax payer have to file quarterly GSTR3B return but monthly payment option.
  • They have been given option to file IFF (Monthly basis for first 2 months of quarter) (IFF = Invoice furnishing facility)
  • Under QRMP scheme tax payer need to declare their outward supply related to B2B including Tax Invoice, DN & CN under IFF option.
  • IFF need to be file for first 2 months of quarter between 1st to 13th month.
  • This can be done on cumulative basis of maximum 50 Lakhs INR in each month.
  • Detail declared under IFF need not to declared under GSTR1 return.
  • Detail of B2B invoice and other information need to be declare in GSTR1 return at quarter end month.
  • Details uploaded in GSTR1 or IFF  will be available under GSTR2A, GSTR4A & GSTR6A on common portal.
  • GSTR2B will also be made available basis on return filed by taxpayer within due date.
Payment Option under QRMP Scheme
  • Under QRMP scheme tax payer require to pay tax normally using PMT-06 challan for the first two months of quarter.
  • While making payment of challan they need to specifically select option “monthly payment for quarterly tax payer”
  • There are basically 2 methods by which you can make payment of Tax

FLAT METHOD

a)      35% of Tax amount paid during previous quarter return

b)     full amount of cash tax paid during previous month return, in case monthly return filed previously

Self Assessment Tax Method

a)      Under this method Taxpayer can workout tax liability based on inward and outward tax during the month and credit allowed under GSTR2A/GSTR2B.


Important Note :-

Important :- In case during first month if you do have sufficient balance under cash/credit ledger or NIL liability then no need to pay tax liability or generate  challans, Similarly during second month cash credit balance is enough on cumulative balance


Payment Example under QRMP Scheme







Migration Process under QRMP Scheme

Tax payer who have turnover below 5 Crore in 2019-20 and have filed Oct 2020 GSTR3B return by 30th Nov 2020 will be automatically migrated to QRMP Scheme and those who have not filed return need to select the scheme manually.



Impact of the Scheme

1- For the month 1st and 2nd of the quarter compliance scheme will be

  • 13th of the following month :- Furnish details of outward supplies i.e B2B,CDN & DBN invoice using IFF option and these details will be made available under GSTR2A, GSTR4A & GSTR6A to counter parties.
  • 25th of following month :- make payment using PMT-06 for the month.
2- For last month of the quarter compliance schedule will be

  • 13th of following month : File GSTR1 for the quarter including B2C supplies for the entire quarter.
  • 22nd and 24th of the following month : File GSTR3B for the quarter.
Important Notes & Issue
  • Payment of Tax need to be done by 25th of the following first and second month of quarter.
  • Amount paid in 1st and 2nd of the month need to be solely for disbursing liability furnished in Quarter (Last month of quarter.

Queries in doubt?

  • If tax is auto calculated at 35% or self assessment then why IFF need to file?
  • Why IFF is optional either make it compulsory or remove it.
  • If self asses tax liability need to be determine then why not to file GSTR3B for month.
  • Any software how can identify IFF and GSTR1 for the quarter.

For any query or doubt write us on samadtallyacademy@gmail.com or call us on 09699333653.

Thankyou
Parvez Ansari (GST AND TALLY WALA)