Entire Knowlwdge for Quarterly Returns with Monthly Payment Scheme

CBIC has emerged with a new scheme for small taxpayers having an impact turnover of up to 5 crores. This scheme will permit small taxpayers to file their returns on a quarterly basis and bring their payments every month. This scheme has an accurate to alleviate the tax compliance for the small taxpayers. In this article, we will discuss on Quarterly Returns with Monthly Payment Scheme.

What is "Quarterly Returns with Monthly Payment (QRMP)" Scheme?

QRMP scheme is for small taxpayers to file their FORM GSTR-1 and FORM GSTR-3B returns on a quarterly basis while paying their tax rights monthly through an easy challan.

Is this scheme available to everyone?

No. This scheme is available only to those who are accountable to file FORM GSTR-1 and FORM GSTR-3B.

Who Is Eligible for the scheme?

All taxpayers whose aggregate turnover is up to Rs. 5 Crore in the recent and preceding financial year and have filed their last due GSTR-3B return are eligible for this scheme.

Do I require to enter the scheme every quarter to avail its benefit?

No, once opted in, the scheme will proceed for you unless you decide to exit or opt-out.

About Quarterly Returns with Monthly Payment Scheme

A taxpayer may choose this scheme even anytime if it fulfils the eligibility criteria. As per Rule 61A Portal will deliver an alternative to opt under this scheme from the 1st day of the 2nd Month of Prev. Quarter to the Final day of 1st month of the quarter. Also, the taxpayer necessity does not register for this scheme every quarter even unless he expects to opt-out from the scheme or evolves ineligible.

Also Note: In Order to pertain for these on 31st Apr’21 the taxpayer should have filed their GST Return filing for the period before Mar’21 which continues due on 22nd/24th April.

Relevancy and Eligibility of this scheme

This scheme is favourable from 1.01.2021 for the registered person having an aggregate turnover of Rs. 5 Cr. Hence once the threshold of 5 Cr is crossed the registered person evolves ineligible for this scheme from the following quarter. Also, have their GST Return filing before pertaining to for this scheme shall be duly accepted with.

What is the self-assessment of liability?

Self-assessment of liability means that you evaluate your taxes for a month by ascertaining outward supplies made during the month and your accessible input tax credit. A challan may be induced for the amount of self-assessed liability.

Late Fee Liability under the QRMP Scheme

No late payments for uncertainty in tax for the 1st two months. However late fees would be sufficient for Quarterly filing Returns (GSTR-1 and GSTR-3B).

Objectives of the QRMP Scheme

QRP Scheme being relief would be by default facilitated to the taxpayers based on the past trend i.e. taxpayers having aggregate turnover less than 5 cr. will be facilitated these scheme by default except for the taxpayers filing the monthly return).

Further One shall opt-out from the next quarter once it crosses8 the limit. Also, know about Quarterly Returns with Monthly Payment Scheme.

The author is an associate editor for Gst Registration, ISO Certificaton in India.