The Central Board of Direct Taxes (CBDT) has introduced the Quarterly Returns with Monthly Payment Scheme (QRMP) to simplify GST compliance for small taxpayers. This scheme allows eligible taxpayers to file their GSTR-1 and GSTR-3B returns quarterly while making monthly tax payments through a simple challan.
Eligibility and Opting for the QRMP Scheme
The QRMP scheme is designed for small taxpayers whose aggregate turnover is Rs. 5 Crore in the current and preceding financial years. Taxpayers must have filed their last due GSTR-3B return to be eligible. Once eligible, taxpayers can opt into the scheme via the GST portal, navigating through Login -> Services -> Returns -> Opt-in for quarterly returns. Opting in or out is available during specified periods each quarter.
Monthly Payments Under the QRMP Scheme
Taxpayers participating in the QRMP scheme must generate a payment challan for the first two months of each quarter. They have two options for making these payments:
- Self-assessment of liability involves calculating taxes based on outward supplies and available input tax credits.
- Depending on the filing frequency, we are paying 35% of the net cash liability from the last quarter’s GSTR-3B filing or 100% from the previous month’s GSTR-3B filing.
Benefits of the QRMP Scheme
The QRMP scheme offers several benefits, including:
- Reduced Compliance Burden: By allowing quarterly return filings, taxpayers spend less time on compliance while ensuring timely monthly tax payments.
- Flexibility in Payment: Taxpayers can choose between self-assessment and a fixed percentage payment, accommodating different business needs.
- No Late Fees for Monthly Payments: As long as the auto-calculated challans are paid by the 25th of the succeeding month, no interest or late fees are incurred.
Actions for the Last Month of the Quarter
Taxpayers must file their GSTR-1 and GSTR-3B returns for the entire quarter in the last month of the quarter. The due dates for these filings vary based on the taxpayer’s principal place of business but are generally between the 13th and 24th of the month following the end of the quarter.
Optional Invoice Furnishing Facility (IFF)
The QRMP scheme also provides an optional Invoice Furnishing Facility (IFF), allowing taxpayers to upload their B2B invoices for the first two months of the quarter. This helps ensure recipients can view these invoices in their GSTR-2A and GSTR-2B forms, facilitating smoother input tax credit claims.
Miscellaneous Benefits and Provisions
- Nil Returns by SMS: Taxpayers can file nil returns via SMS, simplifying the process for those without transactions in a given period.
- Refunds: Taxpayers can apply for refunds after filing their quarterly GSTR-3B return, ensuring liquidity management.
Optional Invoice Furnishing Facility (IFF) under QRMP
The Optional Invoice Furnishing Facility (IFF) benefits taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme. It allows them to report outward supplies (B2B invoices only) for a quarter’s first two months (M1 and M2). It helps recipients claim Input Tax Credit (ITC) faster.
Here’s how it works:
- IFF is optional. You can file the complete GSTR-1 for M1 and M2 or use IFF.
- You can file IFF details by the 13th of the subsequent month (e.g., April’s IFF by May 13th).
- IFF covers B2B invoices, credit/debit notes (registered), and amended invoices/notes.
- Any remaining invoices for the quarter need to be filed in the regular GSTR-1 (M3) or the subsequent IFF (if applicable).
Due dates for GSTR-1 and GSTR-3B (Last Month of Quarter)
- GSTR-1 (Quarterly): This is mandatory for the last month (M3) of the quarter and is due by the 10th of the month following the quarter (e.g., July 10th for the April-June quarter).
- GSTR-3B (Monthly): This is filed irrespective of using IFF and is due by the 20th of the following month (e.g., May 20th for April).
Applying for Refunds after GSTR-3B
There are no specific conditions for applying for refunds after filing GSTR-3B. You can claim refunds for excess tax paid through various mechanisms available on the GST portal. However, it is recommended that you file the GSTR-1 accurately and on time for a smooth refund process.
How does the Optional Invoice Furnishing Facility (IFF) work under the QRMP scheme?
IFF under QRMP lets QRMP scheme taxpayers (turnover < Rs. 5 crore) report B2B invoices for the first two months (M1 & M2) of a quarter, expediting ITC claims for their recipients. It’s optional, with deadlines by the 13th of the subsequent month. You can file regular GSTR-1s or use IFF for M1 & M2. Consider if maintaining invoice records for timely IFF filing and the number of invoices you handle monthly works for you.
The QRMP scheme is an initiative by the CBDT to streamline GST compliance for small taxpayers. It provides flexibility and reduces the compliance burden while maintaining regular tax payments.