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All about GST QRMP scheme.

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What is GST QRMP Scheme?

  • QRMP stands for “Quarterly Returns with Monthly Payment”. QRMP scheme is for small taxpayers to file their FORM GSTR-1 and FORM GSTR-3B returns on quarterly basis while paying their tax dues monthly through a simple challan.
  • QRMP scheme is launched to reduce the compliance burden on small tax payers.
  • QRMP scheme is available from 1st January, 2021onwards.
  • All taxpayers whose aggregate turnover is up to Rs. 5 Crore in the current and preceding financial year and have filed their last due GSTR-3B return are eligible for this scheme.
  • This scheme is optional and can be availed by the taxpayers who are liable to file FORM GSTR-1 and FORM GSTR-3B returns.

In simple words, the taxpayers who were filing GSTR-3B monthly along with payment of GST monthly are now under QRMP scheme will be allowed to file the GSTR-3B return on quarterly basis, however payment of GST will be required to be made on monthly basis. 

Steps to Opt in or Opt out from the QRMP scheme.

Taxpayers who were filing monthly GSTR-3B and quarterly GSTR-1 return has automatically migrated to QRMP scheme from 01.02.2021 onwards. But the taxpayers with annual turnover upto 5 Crore and filing GSTR-1 on monthly basis presently have not been migrated to QRMP scheme. Hence, they can opt in for this scheme and avail the benefit of quarterly return and monthly payment of taxes.

Taxpayers can opt in (avail) the scheme and opt out (exit) if they don’t wish to continue quarterly filing by navigating to Login—-Services—-Returns—-Opt-in for quarterly return.

Taxpayers can opt in or opt out from the QRMP scheme as follows:

 Quarter   Between 
 Q1 (April-May-June) 1st February to 30th April
 Q2 (July-August-September) 1st May to 31st July
 Q3 (October-November-December) 1st August to 31st October
 Q4 (January-February-March) 1st November to 31st January

How to pay taxes in QRMP scheme.

As the scheme said monthly payment of taxes, taxpayers have to generate monthly payment of challan. There is an option to self-assess  your liability or pay 35% of cash liability paid in the FORM GSTR-3B for the last quarter (in case of where GSTR 3B was filed quarterly) or 100% of the cash liability paid in the FORM GSTR-3B for the last month (in case where FORM GSTR-3B was filed monthly) through a challan.

Challan has to be generated by 25th of the next month. For example, for the month of January challan has to be generated by 25th of February.

To Pay taxes: Navigate to Login—-Services—-Payments—-Create challan—-Select monthly payment for quarterly return (Reason for challan)—-Select 35% challan or challan on self-assessment basis (Challan type), as applicable—-Select proceed and Pay the challan.

However, you do not have to take any action in the following cases:-

a) Aggregate balance in your electronic cash ledger and electronic credit ledger is greater than liability for that month.

b) You have No or Nil liability for that month.

 Related: Do you know there are 9 types of GST returns to file in a year?

Is QRMP scheme beneficial?

QRMP scheme is mainly for small taxpayers to reduce the compliance burden and cost, the scheme allows quarterly filing of GSTR-1 and GSTR-3B which reduces the cost and monthly compliance of small taxpayers. Some of other benefits of QRMP scheme are as follows:

1. Apart from filing GSTR-1 & GSTR-3B quarterly, pay monthly tax conveniently using Fixed sum method (Pre-filled challan) or Self-assessment method (actual Tax due after adjusting ITC).

 2. It is an optional scheme, taxpayers can easily opt in or opt out from the QRMP scheme.

 3. Invoice Furnishing Facility (IFF) is available for taxpayers who wants to pass on the benefit of input tax credit (ITC) to the recipients (customers/buyers). It may be noted that IFF for a month will expire after the due date of 13th of the next month, and cannot be filed after this due date.

 4. Reduce tax liability and compliance cost by filing GST return quarterly.

In nutshell, QRMP scheme is an eyewash for small taxpayers. For monthly payment of taxes, taxpayers & professionals still have to self-assess the tax liability to pay monthly. Quarterly filing of GSTR-1 and GSTR-3B can reduce some burden from small taxpayers & professionals as monthly compliance has been shifted on quarterly basis.  

Need Help filing your GST Return?

You can get in touch with us at [email protected] or give call us on 076 78414886, for all GST related queries.

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