QRMP Scheme: How It Works & Who Should Opt for It?
The Quarterly Return Monthly Payment (QRMP) Scheme was introduced under GST to ease compliance for small taxpayers. This scheme allows eligible businesses to file their GST returns on a quarterly basis while making monthly tax payments. It significantly reduces the compliance burden, making GST filing more convenient.
Who is Eligible for QRMP?
- Taxpayers with an aggregate turnover of up to ₹5 crore in the previous financial year.
- Those registered under GST and filing GSTR-3B.
- Taxpayers who have opted for the QRMP scheme before the due date.
How QRMP Scheme Works?
- Filing Frequency: GSTR-1 and GSTR-3B are filed quarterly instead of monthly.
- Monthly Tax Payment: Taxpayers pay GST every month using either of the following methods:
- Fixed Sum Method (FSM): 35% of the last quarter’s tax liability or 100% of the previous month’s tax.
- Self-Assessment Method (SAM): Payment based on actual tax liability.
- Invoice Furnishing Facility (IFF): Allows businesses to report B2B invoices monthly, ensuring that their buyers can claim input tax credit (ITC) without waiting for the quarter-end.
Benefits of QRMP Scheme
✅ Lower Compliance Burden: Reduces return filing frequency from 12 to 4 times a year. ✅ Better Cash Flow Management: Flexible tax payment options reduce immediate cash outflows. ✅ Seamless ITC for Buyers: With IFF, buyers can claim input tax credit every month. ✅ Reduced Late Fees: Since returns are filed quarterly, late fees for non-filing are reduced.
Who Should Opt for QRMP?
✔️ Small businesses with turnover below ₹5 crore. ✔️ Firms preferring quarterly filing for ease of compliance. ✔️ Businesses with steady or low tax liability to benefit from fixed sum payment. ✔️ Dealers whose buyers require regular ITC claims via IFF.
How to Opt for QRMP?
- Login to the GST portal at www.gst.gov.in.
- Navigate to ‘Services’ → ‘Returns’ → ‘Opt-in for Quarterly Return Filing’.
- Select the desired financial year and quarter.
- Confirm your choice and submit.
Final Thoughts
The QRMP scheme is a beneficial option for small businesses looking to simplify their GST compliance. However, businesses with frequent ITC requirements or fluctuating sales may need to evaluate their needs before opting in. Carefully analyze your tax liability and cash flow before making a decision!
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as professional accounting, tax, or legal advice. While we strive to keep the content accurate and up to date, laws and regulations may change, and individual circumstances may vary. Readers are advised to consult with a qualified professional before making any financial or tax-related decisions. Gupta Nayar and Co. and the author disclaim any liability for actions taken based on the content of this article.