Key Highlights of the QRMP Scheme for GST

02March

Key Highlights of the QRMP Scheme for GST

<p style="background-color:rgb(24,24,27);border:0px solid rgb(229,231,235);color:rgb(228,228,231);font-family:'Inter var', 'ui-sans-serif', 'system-ui', sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji';font-size:14px;font-style:normal;font-weight:400;margin:0px 0px 0.5em;word-spacing:0px;">The Quarterly Return Monthly Payment (QRMP) scheme, introduced by the GST Council, is a significant step towards easing the process of tax compliance for small businesses. The scheme allows taxpayers with an aggregate turnover of up to ₹5 crore to file returns quarterly while making monthly tax payments.<h4 style="background-color:rgb(24,24,27);border:0px solid rgb(229,231,235);color:rgb(228,228,231);font-family:'Inter var', 'ui-sans-serif', 'system-ui', sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji';font-size:14px;font-style:normal;line-height:1.5;margin:1.5em 0px 0.5em;word-spacing:0px;">Key Features of the QRMP Scheme:</h4><ol style="background-color:rgb(24,24,27);border:0px solid rgb(229,231,235);color:rgb(228,228,231);font-family:'Inter var', 'ui-sans-serif', 'system-ui', sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji';font-size:14px;font-style:normal;font-weight:400;list-style:decimal;margin:0px 0px 1.25em;padding:0px 0px 0px 2.625em;word-spacing:0px;"><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Eligibility: Businesses with an annual turnover of up to ₹5 crore are eligible for the QRMP scheme, starting from January 2021. If a business exceeds this threshold in any quarter, it will have to switch to monthly returns in the subsequent quarter.</li><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Filing of Returns:<ul style="border:0px solid rgb(229,231,235);list-style:disc;margin:0.75em 0px;padding:0px 0px 0px 1.625em;"><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Quarterly Filing: Businesses are required to file their GSTR-3B quarterly, but they need to pay taxes monthly.</li><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Monthly Payments: Tax payments must be made in the first two months of a quarter, with options for fixed sum or self-assessment methods.</li></ul></li><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Invoice Furnishing: For each of the first two months of the quarter, taxpayers can use the Invoice Furnishing Facility (IFF) to upload outward supply invoices up to ₹50 lakh per month. These will be reflected in the recipient's GSTR-2A and GSTR-2B.</li><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Simplified Payment: The fixed sum method calculates the payment based on 35% of the tax paid in the preceding quarter, providing a simpler mechanism for taxpayers.</li><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Interest and Penalties: No interest is charged on payments made under the fixed sum method if the correct amount is paid on time. However, interest will be levied if payments are delayed or underpaid.</li><li style="border:0px solid rgb(229,231,235);margin-bottom:0.5em;margin-top:0.5em;padding-left:0.375em;">Applicability of Late Fee: The late fee applies for delays in submitting quarterly returns, but there are no penalties for late payments in the first two months of the quarter.</li></ol><p style="background-color:rgb(24,24,27);border:0px solid rgb(229,231,235);color:rgb(228,228,231);font-family:'Inter var', 'ui-sans-serif', 'system-ui', sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji';font-size:14px;font-style:normal;font-weight:400;margin:0.5em 0px;word-spacing:0px;">This scheme is part of the government’s ongoing efforts to simplify GST compliance for small and medium enterprises (SMEs), promoting ease of doing business. <a href="https://cms.plasament.com/storage/nisha/circular-refund-143-11-2020.pdf">circular_refund_143_11_2020 </a>

Key Highlights of the QRMP Scheme for GST

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