What is the QRMP Scheme?
The Quarterly Return Monthly Payment of Taxes (QRMP) Scheme was launched for the benefit of small taxpayers. Small taxpayers having aggregate turnover of up to Rs 5 Cr are allowed to register under the QRMP Scheme under GST.
The QRMP Scheme permits taxpayers to file GSTR 3B on a quarterly basis while paying the taxes each month. If the aggregate turnover in the preceding financial year exceeds that in any quarter, the registered person will become ineligible for the QRMP Scheme from the upcoming quarter.
The QRMP Scheme is available for taxpayers who are eligible to file GSTR 1 and GSTR 3B. In case annual turnover exceeds the Rs 5 Cr mark in any quarter of the preceding financial year, the eligibility of the taxpayers will be suspended from the next quarter. Composition scheme taxpayers are not eligible for QRMP Scheme benefits.
Eligibility Criteria for the QRMP Scheme
- Both regular and new taxpayers are eligible for the QRMP Scheme based on the turnover limits
- Before opting for this scheme, taxpayers should ensure that they have filed the GSTR 3B
- The individuals who have already opted for the composition scheme under the GST are not eligible for it
- Businesses aiming for stable cash flow and lower transaction volumes can opt for quarterly returns and monthly filing under the GST regime in the country
- Taxpayers registered with the same PAN having different GSTIN can also opt for this scheme to leverage special benefits
Even under the QRMP Scheme, the taxpayers can claim the Input Tax Credit so that they can maintain stable cash flow and better management of the business. To claim the ITC, individuals make sure that their invoice summary is to be reflected in the GSTR 2B.
Challenges Under QRMP
Though the QRMP scheme benefits smaller businesses and entities, it does not provide leverage to bigger businesses. Even the consistent filing of tax payments under this scheme limits the cash flow though through ITC you can manage it. But for the time being the routine payment of the taxes controls the cash flow.
Possible discrepancies between GSTR 2B and supply invoices may delay the Input Tax Credit claims and it may pose a danger to the growth of business. Under the QRMP, regular bookkeeping, accurate GST returns and timely legal compliances are required.
Conclusion
The QRMP scheme under GST offers constant support to medium and small-scale businesses. Taxpayers should file the GSTR 1 and GSTR 3B in each quarter by the 13th and 22nd/24th respectively though the payment has to be made by the 25th of each month to meet compliances.
To get yourself registered under the QRMP Scheme, reach out to TaxDunia so that you can also leverage specified benefits including ITC. We will help you manage the cash flow of your business and meet all the legal compliances.
