Government Launches a New scheme to facilitate small taxpayers- Quarterly Return filing & Monthly Payment of Taxes  (QRMP)

The 42nd GST Council meeting decided that the taxpayers with less than Rs 5 crore annual turnover will not be required to file monthly GSTR-1 and GSTR-3B returns. Instead, they will now do it on a quarterly basis. In continuation to that, the Modi Government on December 5, 2020 has finally announced the launch of the same under the name of QRMP Scheme. In this article we will discuss about the QRMP Scheme, to whom it shall apply?, and the process of filing the GST Return in Form GSTR 3B and GSTR 1 under the QRMP Scheme.

What is QRMP Scheme?

• QRMP means Quarterly Return filing & Monthly Payment of Taxes.
• Under the QRMP Scheme, Taxpayers can make GST payments through challan every month.
• The GST payments can be made either by self-assessment of monthly liability or 35 per cent of net cash liability of previous filed GSTR-3B of the quarter.

Important update on QRMP

The department has started sending messages to tax payers as- “Dear taxpayer, as per QRMP scheme you are defaulted to file your GSTR-1 and 3B on monthly basis from Jan-21. To change please visit services.gst.gov.in.”

This means that all the taxpayers w.e.f January 2021, by default needs to file their GSTR 1 and GSTR 3B on monthly basis under the QRMP Scheme. However, if you wish to opt for the quarterly filing of GSTR 1 & GSTR 3B, you may change your option from the department’s official website i.e. services.gst.gov.in.

Who is eligible for the QRMP Scheme?

Taxpayers with aggregate annual turnover of up to Rs 5 crore in the preceding financial year and have filed their October GSTR-3B (sales) return by November 30, 2020, are eligible for this scheme.

Important characteristics of the QRMP Scheme

• The taxpayers up to Rs 5 crore turnover will have the option to file their GSTR-1 and GSTR-3B returns quarterly beginning January-March period.
• Taxpayers can make GST payments through challan every month either by self-assessment of monthly liability or 35 per cent of net cash liability of previous filed GSTR-3B of the quarter.
• Quarterly GSTR-1 and GSTR-3B can also be filed through an SMS.

Graphical presentation of the QRMP Scheme

This scheme will facilitate a lot of GST Taxpayers who wishes to file their return quarterly. The scheme QRMP will ease of the burden of the taxpayers as they are not required to file their GSTR 3B and GSTR 1 on monthly basis.