All about Quarterly Return Monthly Payment (QRMP) Scheme

CA Robin Garg | Last updated: 06 January 2021

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Quick Summary

The Quarterly Return Monthly Payment (QRMP) scheme, introduced to simplify GST compliance for small businesses, allows eligible taxpayers to file their GSTR-3B returns quarterly while making monthly tax payments. This initiative aims to reduce the compliance burden for businesses with an annual turnover of up to Rs. 5 crore. Taxpayers can opt into the scheme via the GST portal, with specific deadlines for opting in each quarter.

Taking another step towards the goal of "Ease of doing business" and to provide relief to small taxpayers, the GST council introduced the QRMP scheme in the 42nd Council meeting. As indicated from the scheme’s name, the Quarterly Return Monthly Payment scheme (QRMP) is a scheme to file returns on a quarterly basis but making payments on a monthly basis, which will lead to reducing the burden of return filing compliance.

What is the QRMP Scheme?

From 1st January 2021, the Central Board of Indirect Taxes and Customs (CBIC) introducing the QRMP scheme under GST to help small taxpayers whose turnover is less than Rs. 5 crores. The QRMP scheme allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month beginning from January-March,2021 period.
Taxpayers can make GST payments through challan every month either by self-assessment of monthly liability or 35% of net cash liability of previous filed GSTR-3B of the quarter

Who is eligible for the Scheme?

A taxpayer having taxable turnover up to Rs. 5 Crore in preceding and current financial year.
Taxpayers who are liable for filing of GSTR-3B return.
All the returns on the date of opting for the scheme have been furnished.
If annual aggregated turnover crosses INR 5 Crores during a quarter, taxpayers will become ineligible for the Scheme from the next quarter.
Any person obtaining a new GST registration or opting out of the Composition Scheme.

How to opt in the scheme?

Taxpayers can opt-out from the GST portal GST.GOV.IN > Services > Returns > Opt-in for Quarterly Return option to opt-in or opt-out of the QRMP scheme.
Option to exercise the scheme will be available throughout the year.
Can opt-in for any quarter from the first day of the second month of the preceding quarter to the last day of the first month of the quarter for which want to opt for the scheme
Example: If a taxpayer wants to opt-in for January to March quarter can exercise the option from 1st November to 31st January.
Taxpayer has the option to avail the scheme GSTIN Wise i.e. Some GSTINs for a PAN can opt in and others can opt out.
Option once exercised shall be valid for succeeding quarters also.

Due Date of GSTR-3B

S.No.	State	Due Date
1.	Taxpayer whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman, and Nicobar Islands or Lakshadweep	22nd day of the month succeeding such quarter
2.	Taxpayer whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi	24th day of the month succeeding such quarter

Due Date of GSTR-1

13th of the month succeeding such quarter.

Form and Due date of payment

Due date of payment is the 25th of the succeeding month.
The form is GST PMT-06.

Calculation of Payment

S.No.	Month	Payment
1.	First Month	Self-assessed tax or 35% of the net cash tax liability of the last quarter
2.	Second Month	Self-assessed tax or 35% of the net cash tax liability of the last quarter
3.	Third Month	Self-assessed tax or Balance of the net cash tax liability of the last quarter

Invoice Furnishing Facility (IFF)

The registered persons opting for this scheme can furnish the details of outward supplies using the Invoice Furnishing Facility (IFF). The time period is from the 1st day of the month succeeding such month till the 13th day of the said month.
For example- Details of outward supplies of January 2021 can be furnished from 1st February 2021 to 13th February 2021.
Such IFF details shall reflect in GSTR-2A and GSTR-2B of the recipient.
The details can be furnished up to a cumulative value of fifty lakh rupees in each of the months.
The details of outward supplies furnished using the IFF, for the first and second months of a quarter, shall not be furnished in FORM GSTR-1 for the said quarter.