The GST’s Quarterly Returns with Monthly Payment (or QRMP) system enables qualified taxpayers to submit their Form GSTR-1 and Form GSTR-3B returns on a quarterly basis. However, these taxpayers will use a challan to pay their taxes on a monthly basis.
What is QRMP Scheme?
The Central Board of Indirect Taxes and Customs established the Quarterly Return Monthly Payment Scheme, or QRMP Scheme, under the Goods and Service Tax (GST) system, which has been in effect since January 1, 2021. Small company taxpayers can use this tool to file GST Returns at the end of each quarter and pay taxes on a monthly basis.
Prior to the adoption of the program, taxpayers were required to submit the GSTR-1 and GSTR-3B on a monthly basis. Now, however, they are permitted to submit reports quarterly.
You need to file fewer returns each year as a result of doing this. The plan also offers two ways for you to pay taxes. They are the fixed sum approach and the self-assessment technique. However, this program is optional; as a result, every taxpayer may choose to use it or not.
Significance of the QRMP Scheme
The purpose of instituting the QRMP Scheme was to assist taxpayers in reducing the burden of submitting monthly tax returns and operating their enterprises more efficiently. This applies to taxpayers with a turnover of up to Rs. 5 Crores in the previous fiscal year.
Under the GST administration, the Central Board of Indirect Taxes & Customs has launched this program to simplify the tax payment and tax return submission processes for small enterprises.
This program can be advantageous to them in a number of ways, as described below.
- It will significantly reduce the obligations of taxpayers, who will be required to file only four rather than twelve GSTR-3B returns annually.
- This will facilitate the payment of monthly tax in the first two months of each quarter via Pre-filled Challan or Self-Assessment.
- Taxpayers can choose when to opt infccfeazZSXDCGFVRV and opt out of this QRMP scheme under the GST Quarterly Return Scheme via the portal 365 days a year.
- As a taxpayer, you can take advantage of the Invoice Filing Facility (IFF), which has been permitted under this program. The IFF facility permits the filing of four GSTR-1 returns annually. In addition, you can quarterly offload your invoices during the first two months. Consequently, you will not have to wait until the end of the quarter to submit the return. In addition, IFF expedites the process of claiming Input Tax Credits.
- This will also reduce the cost of calculating your quarterly tax liability compared to the previous monthly system.
Eligibility Criteria for QRMP Scheme
The following are the eligibility requirements for the QRMP Scheme:
- To be eligible for the GST QRMP Scheme, you must file a GSTR-3B return with a total turnover of up to Rs. 5 crores in the preceding fiscal year.
- This plan is only available if you have the authority to file Form GSTR-1 and Form GSTR-3B returns.
- Previous GSTR-3B returns must be filed correctly.
- The entire turnover for the previous fiscal year should not have exceeded Rs. 5 crores. Otherwise, you would be considered ineligible for the QRMP Scheme in future quarters.
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- There must be no data already recorded in the Form GSTR-1 portal for the stated time period during which you are utilizing this scheme. If there is, you must erase the recorded data from this form before proceeding with this plan.
- You can also choose the GST QRMP Scheme when getting the GST Composition Scheme or a new GST registration.
- This QRMP Scheme will only be available if you have a GSTIN, or Goods and Services Tax Identification Number.
- You will be unable to submit additional quarterly returns if you have not submitted the preceding overdue return.
How Does the GST QRMP Scheme Work?
The following are the steps to use the QRMP Scheme for quarterly GST returns:
- Go to the official Goods and Services Tax (GST) website.
- Select the QRMP (Quarterly Return Monthly Payment) Scheme.
- Click on login and input your login information.
- Click on the ‘Services’ tab.
- Select ‘Returns’.
- Finally, pick the quarterly return option.
After you have enrolled in this program, you must understand how to make tax payments in accordance with the QRMP program. The following are the steps for making tax payments:
- Go to the official website of the Goods and Services Tax.
- Enter your login information into the site.
- Navigate to the Dashboard from the ‘Options’ area.
- Once you’ve retrieved the Dashboard, go to Payments and then to the ‘Create challan’ option.
- Navigate to the ‘Reason for Challan’ section and choose the option ‘Monthly payment for quarterly return.’ Select the time, fiscal year, and challan type before selecting ‘Proceed.’
- Those using the fixed sum technique and self-assessment methods must choose the ‘35% challan’ and ‘Challan on self-assessment basis’ options, respectively.
- Choose your payment method and pay the challan amount.
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