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Chartered Accountant
Surfing through GST compliance waves can be a big challenge for small businesses, but the Quarterly Return Monthly Payment (QRMP) Scheme is here to make it easier.
Introduced by the Government of India, this scheme is tailored to reduce the compliance burden on small taxpayers by allowing them to file GST returns quarterly while making tax payments monthly.
If you’re a small business owner looking for a simpler way to manage your GST filings, this guide will walk you through everything you need to know about the QRMP Scheme.
The QRMP Scheme is a thoughtful initiative designed to benefit small taxpayers. Reducing the frequency of return filing saves time, lowers compliance costs, and offers greater flexibility.
For small businesses, this scheme simplifies tax payments, helping them focus more on their core operations rather than getting bogged down by complex compliance processes.
Under the QRMP Scheme, taxpayers have two options to pay taxes during the first two months of a quarter:
Also known as the 35% Challan Method, the FSM simplifies tax payments by allowing taxpayers to pay a predetermined amount:
The SAM gives taxpayers more control by letting them calculate their actual tax liability based on:
This method is ideal for those who prefer precision in their monthly tax calculations.
The Invoice Furnishing Facility (IFF) is a feature of the QRMP Scheme that serves as a boon for taxpayers who wish to maintain a steady flow of input tax credit (ITC) to their recipients. Simply, it's a system that lets qualified taxpayers upload invoices monthly, even if they file their taxes quarterly.
The IFF is an optional facility that enables taxpayers to upload the details of their outward supplies to registered persons (B2B) for the first two months of a quarter.
The purpose of the IFF is to help businesses pass on the ITC benefits to their buyers without waiting for the quarterly return filing, thus avoiding any working capital blockage.
Eligible taxpayers can easily opt for the QRMP Scheme through the GST portal.
You can opt into the scheme for a quarter from the 1st day of the second month of the previous quarter to the last day of the first month of the current quarter. For example, to opt-in for the July-September quarter, you can do so from May 1st to July 31st.
If your business needs to change, you can opt out of the QRMP Scheme. However, this must be done within specified deadlines.
Failing to opt-out within the deadlines means:
The QRMP Scheme is a well-thought-out initiative to ease GST compliance for small businesses. By simplifying return filing and offering flexible payment options, it aligns with the dynamic needs of small enterprises.
Features like the IFF further enhance the scheme’s utility by ensuring a steady flow of ITC, benefiting both taxpayers and their buyers.
Whether you’re a seasoned business owner or just starting, the QRMP Scheme offers a streamlined approach to managing GST. By leveraging its benefits, you can focus on growing your business while staying compliant.
Chartered Accountant
Vyapar TaxOne
CA
