A registered person who need to file a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. The aggregate annual turnover for the preceding financial year shall be calculated in the common GSTN portal taking into account the details furnished in the returns by the taxpayer for the tax periods in the preceding financial year.
This new Scheme will be effective from 01.01.2021. Further, in case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.
This scheme is beneficial for small and middle-level businesses and traders who are a GST registered person.
Following are some benefits of this scheme
- The possibility of mismatch of input credit in GSTR-2 will be reduced due to monthly IFF (Invoice Furnishing Facility). In QRMP Scheme GST Invoices will be uploaded in IFF on a monthly basis so that input credit show in GSTR 2A and GSTR 3B of concerned recipients.
- The chances of Late Fees due to the non-filling of GSTR-3B will reduce. When a person opts QRMP scheme, he has to file GSTR 3B on a quarterly basis. Currently, when a person misses his monthly GSTR-3B he has to pay a monthly return penalty but when he opts for the QRMP Scheme, he has to file 1 quarterly return so the return penalty will be reduced.
- Chances of variation in invoices and input credit will go down because of the monthly invoice uploaded.
- The pressure of filling monthly GSTR 3B will reduce. Currently, it is a very hectic process for GST professionals.
- It is an optional scheme. A registered person can switch back to the option of monthly return once he has opted for the QRMP scheme.
Following are some drawback of this scheme
- The workload for GST professionals including accountants will increase due to IFF and new tax payment methods.
- This scheme is difficult to understand for a registered person.
Overall it is a good scheme for small and middle GST registered people.