What is QRMP Scheme and benefit for Small Business

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The Central Board of Indirect Taxes & Customs (CBIC) initiated Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under Goods and Services Tax (GST) to assist small taxpayers whose turnover is less than Rs.5 crores. The QRMP scheme enables the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month. In this article, we will discuss What is QRMP Scheme and what are their benefits.

What is QRMP Scheme?

As we know QRMP is Quarterly Return and Monthly Payment Scheme acceptable to every registered person who opts for formal registration in the act and having aggregate turnover of up to Five crores in the preceding financial year, or who have obtained to furnish a return for every quarter or monthly and having turnover surpass 1.5 crores and up to 5 crores.

Who is eligible for the QRMP scheme?

A registered person who is compelled to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is competent for the QRMP Scheme. Further, in possibility the aggregate turnover exceeds five crore rupees during any quarter in the current financial year, the registered person shall not be competent for the scheme from the next quarter.

How to practice Option for QRMP Scheme?

A registered individual who aims at to file his GST Return Filing for GSTR-3B quarterly should imply the same on GST portal, from the 1st of the second month of the preceding quarter until the final day of the first month of the quarter for which such option is being exercised.

Once the registered person has opted for quarterly filing, he will have to proceed to furnish his return every quarter for all future tax periods, except in the following conditions:

  1. If the taxpayer evolves ineligible for furnishing a quarterly retrieval (for example, if the aggregate turnover strikes out Rs.5 crore during a quarter, then from the next quarter he will not be eligible to file quarterly returns).
  2. If the taxpayer opts to provide GSTR-3B on a monthly basis.
  3. A registered person will not be competent to opt for furnishing quarterly returns if the last return, which was due on the date of exercising such an option has not been furnished.

Features of QRMP Scheme

  • QRMP is Quarterly Return Monthly Payment Scheme.
  • It’s an optional Scheme for the notified individual.
  • This Scheme is GSTIN wise, that is, some GSTINs for that PAN can opt for the persisting GSTINs may not opt for the Scheme.
  • This Scheme is usable on common portal throughout the year.

Methods of Payment under the QRMP Scheme

The taxpayer has to impose tax utilizing form GST PMT-06 by the 25th of the following month, for the first and second months of the quarter. The taxpayers can spend their monthly tax liability either in the Fixed Sum Method (FSM) or Self Assessment Method (SAM).

Due Dates for Filing GSTR-3B for December, 2020

In case, you expect any sort of guidance related to the GST Registration, please feel free to contact our business advisors at 8881-069-069.

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