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QRMP (Quarterly Return Monthly Payment) Scheme Vs. Regular Scheme of Return Filing: Which one is better?
Government has declared a new scheme QRMP scheme in the 42nd GST council meeting which was held on 5th October 2020.
QRMP scheme is a new scheme which can be availed by the small taxpayer and can reduced their tax compliances. This scheme has started from 1st January 2021.
This scheme is optional scheme. One can opt out or out in accordance the individual requirements of the Business, Clients and needs.
Before taking decision for opting or opt out one should understand the following basic terms and its relevance in GST:
Who is Eligible for QRMP:
All taxpayers whose aggregate annual turnover (ON PAN INDIA BASIS) for FY-2019-20 is up to ₹ 5 Crore in the current financial year or the preceding financial year (if applicable) and have already filed their last due Form GSTR-3B return, are eligible for the QRMP scheme.
Due dates for Opt in or Out for QRMP:
||Quarter of a particular year
||QRMP Scheme can be opted in or opted out during
||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 of next year
Due dates and Payment of Taxes under QRMP:
It may be noted that, only Return filing facility is made quarterly. The tax payment will still remain to be a monthly activity.
There are two option in for making payment in QRMP. Either you can pay under fixed sum method or on the basis of self-assessment after adjusting ITC.
Taxpayer needs to pay the taxes before 25th of the next month. If you pay the taxes after due dates then interest @18% p.a is chargeable.
Payment made under this scheme cannot be used for other purposes until and unless taxpayer file their GSTR-3B return.
What is IFF (Invoice Furnishing Facility):
It is a mini version of GSTR-1. This IFF is optional for registered taxpayer. In IFF, registered taxpayer can upload their B2B invoices, Credit notes and Debit notes. However, if taxpayer have B2C invoices then it has to be uploaded it in its Quarterly GSTR-1.
It may be noted that, there is limit in for uploading outward supply. One cannot upload their invoices not exceed the Rs. 50 Lakhs in each month.
Due date for furnishing IFF is 13th of next succeeding month, once the date is over, one cannot upload the invoices in IFF.
Due date for filing Quarterly GSTR-1 is 13th of the succeeding month after completion of the quarter.
Registered taxpayer should take care that, while filing the quarterly GSTR-1, Invoices which was already uploaded in IFF should not be uploaded in GSTR-1.
Only remaining invoices needs to be uploaded along with B2C invoices if any. A proper record needs to be maintain for it.
Normal or Regular Scheme under GST Act (Alternative to new QRMP Scheme):
It is mandatory for all those whose turnover exceeds more than Rs. 5 Cr. QRMP is an additional scheme provided only for those taxable entities whose turnover is not exceeding Rs. 5 Cr. All those Registered taxpayers who have not opted for QRMP scheme, are required to opt for regular scheme.
Due date for filing Returns:
For GSTR-1: 11th of the next month
For GSTR-3B: Regular due dates which may be 20th, 22nd or 24th depending upon the state and turnover of the taxable entities.
It may be noted that, Taxpayer can be file their GSTR-1 after expiring the due dates also i.e., after 11th after the respective month.
However, in IFF, taxpayer cannot file IFF after due dates.
All the details of outward supply can be filed in one flow without maintaining additional records like in QRMP option.
Given the above distinguishing feature, taxpayer can decide which scheme is better for their business & clients.