The Quarterly Return Filing and Monthly Payment (QRMP) scheme, a progressive initiative by the Central Board of Indirect Taxes & Customs (CBIC), marks a significant shift in the GST compliance process. Introduced in January 2021, this scheme is tailored for small taxpayers, aimed at reducing their compliance burden. Understanding the QRMP filing procedure is crucial for eligible businesses to benefit from this scheme. This blog serves as a comprehensive QRMP filing guide, outlining the steps to file QRMP and the QRMP submission process, providing a straightforward path for small and medium enterprises to stay compliant within the GST framework.
Also Read: What is QRMP?
Understanding the QRMP Scheme
At its core, the QRMP scheme is designed to simplify the GST filing process for smaller businesses. It allows eligible taxpayers to file their GSTR-3B returns quarterly while making tax payments monthly. This balance between less frequent filing and regular tax payments is a cornerstone of the QRMP scheme. In addition, by reducing the number of filings from 16 to 8 per year, QRMP considerably eases the compliance workload. Table: QRMP Scheme Simplification| Filing Under Regular GST | Filing Under QRMP Scheme |
| 12 GSTR-3B + 4 GSTR-1 Returns (Total 16) | 4 GSTR-3B + 4 GSTR-1 Returns (Total 8) |
Eligibility Criteria for QRMP
To leverage the benefits of the QRMP scheme, businesses must first ascertain their eligibility. In addition, the scheme is open to registered taxpayers with an aggregate annual turnover of up to Rs.5 crore in the preceding financial year. It’s important to note that exceeding this turnover limit in the current financial year disqualifies taxpayers from continuing in the QRMP scheme. Table: QRMP Eligibility Criteria| Eligibility Criterion | Requirement |
| Annual Turnover | Up to Rs.5 crore in the preceding FY |
| Registration | Must be a registered taxpayer |
Steps to Opt for QRMP Scheme
Opting for the QRMP scheme is a straightforward process, therefore essential for those who wish to simplify their GST compliance. To begin, the first step is to log in to the GST portal using your credentials. Navigate to the ‘Services’ section, then to ‘Returns,’ and finally to the ‘Opt-in for Quarterly Return’ option. Here, you can select whether to opt in or out of the QRMP scheme. Table: Steps to Opt-In/Out of QRMP| Steps | Action Required |
| 1 | Log in to the GST portal |
| 2 | Navigate to ‘Services’ > ‘Returns’ |
| 3 | Select ‘Opt-in for Quarterly Return’ |
| 4 | Choose to opt in or opt out of QRMP |
Invoice Furnishing Facility (IFF) in QRMP
The Invoice Furnishing Facility (IFF) under the QRMP scheme allows taxpayers to upload invoices monthly, despite the quarterly filing. This facility is particularly useful for uploading B2B invoices, which ensures that your recipients can claim their Input Tax Credit (ITC) timely. Remember, the IFF is only for the first two months of each quarter. Additionally, this is a key element in the QRMP e-filing steps, allowing for smoother transactions and better credit management for businesses.Tax Payment Methods under QRMP
When it comes to making tax payments under the QRMP scheme, there are two methods: the Fixed Sum Method (FSM) and the Self Assessment Method (SAM). FSM involves paying a fixed sum based on past tax payments, while SAM requires calculating tax liability based on actual supplies made. Both methods have their specific processes and deadlines, which are integral parts of the QRMP submission process. Also Read: Tax Payments under the QRMP SchemeDetailed QRMP Filing Guide
Filing under the QRMP scheme is a systematic process designed for simplicity and efficiency. To begin with, here’s a step-by-step breakdown to guide you through the QRMP filing procedure:Step 1: Determine Eligibility and Opt-In for QRMP
First, ensure your business is eligible for QRMP, which primarily depends on your annual aggregate turnover. If it’s up to Rs.5 crore, you can opt for this scheme.- Log in to the GST portal.
- Navigate to ‘Services’ > ‘Returns’ > ‘Opt-in for Quarterly Return’.
- Select ‘Opt-in’ if you meet the criteria.
Step 2: Choose Your Tax Payment Method
For the first two months of each quarter, decide whether to use the Fixed Sum Method (FSM) or the Self Assessment Method (SAM) for tax payments.- FSM involves paying a fixed percentage of your past tax liability.
- SAM is based on actual supplies made minus input tax credit.
Step 3: Monthly Tax Payment (First Two Months)
Using your chosen method (FSM or SAM), first, make your tax payments for the first two months of the quarter.- Log in to the GST portal.
- Navigate to ‘Services’ > ‘Payments’ > ‘Create Challan’.
- Select ‘Monthly payment for quarterly return’ and proceed to make the payment.
Step 4: Invoice Uploading Using IFF (Optional)
If you choose to use the Invoice Furnishing Facility (IFF), then upload your B2B invoices monthly for better ITC management.- Access the IFF section on the GST portal.
- Make sure to upload relevant B2B invoices for the first two months of each quarter.
Step 5: Quarterly Return Filing
At the end of the quarter, make sure to file your GSTR-3B and GSTR-1 returns.- Prepare your GSTR-3B and GSTR-1 returns with all the required information.
- Ensure accuracy in reporting all transactions for the quarter.
- Submit the returns on the GST portal.
Step 6: Final Tax Payment (End of Quarter)
If there is any remaining tax liability, ensure to settle it at the time of filing the GSTR-3B return for the quarter.- Check for any outstanding tax liability.
- Next, create a challan for the remaining amount, if any, and make the payment.
Step 7: Regular Review and Update
Regularly review your eligibility for the QRMP scheme, especially if there are changes in your business turnover.- Monitor your turnover each quarter.
- Additionally, update your filing preference on the GST portal if your turnover crosses the Rs.5 crore threshold.
QRMP Submission Process
After completing the initial steps of the QRMP filing process, subsequently, the submission process for your quarterly returns begins. At this point, this crucial stage ensures that your tax liabilities are accurately reported and settled.Step 1: Preparing for Quarterly Filing
Towards the end of the quarter, start preparing your GSTR-3B and GSTR-1 filings. Make sure to gather all necessary documents, including sales and purchase invoices, so that you can ensure accurate reporting.- Collect all relevant transaction details for the quarter.
- Reconcile your books with the GST records to ensure accuracy.
Step 2: Filing GSTR-3B and GSTR-1
File your GSTR-3B and GSTR-1 returns for the quarter on the GST portal. This is a crucial part of the QRMP filing procedure, representing the culmination of your quarterly GST compliance.- Log into the GST portal.
- Navigate to the return filing section and select the appropriate quarter for GSTR-3B and GSTR-1.
- Fill in the required details, ensuring all data is accurate and complete.
Step 3: Review and Submit Returns
Before submitting, thoroughly review your returns for any discrepancies. This step is critical in the QRMP submission process to avoid future complications.- Double-check all entries in GSTR-3B and GSTR-1.
- Confirm that all taxable transactions for the quarter are accurately reported.
| Task | Description |
| Document Collection | Gather all sales and purchase invoices |
| Reconciliation | Match transactions with GST records |
| Filing Returns | Complete GSTR-3B and GSTR-1 on GST portal |
| Review | Double-check all entries for accuracy |
| Submission | Submit returns after thorough review |
Interest and Late Fees in QRMP
Under the QRMP scheme, timely tax payments and filings are crucial to avoid interest and late fees. In addition, interest is charged at 18% per annum for late tax payments and late filing of GSTR-3B. To minimize these charges, it’s essential to follow the QRMP filing procedure diligently and make tax payments by the 25th of the month following each of the first two months of the quarter. Ensure that your final quarterly return is submitted by the due date, typically the 22nd or 24th of the month following the quarter’s end. Table: Avoiding Interest and Late Fees in QRMP| Action Item | Due Date | Consequence if Missed |
| Monthly Tax Payment | 25th of following month | Interest at 18% per annum |
| Quarterly Return Filing | 22nd/24th of month post-quarter | Late fees up to Rs.5,000 |
Handling Common Issues in QRMP Filing
Encountering issues during the QRMP filing process is not uncommon. Common problems often include errors in invoice details, mismatches in ITC claims, or technical glitches on the GST portal. To avoid such issues, it is essential to regularly reconcile your invoices and ensure accurate records are maintained, which helps ensure a smooth QRMP submission. Additionally, use the Invoice Furnishing Facility (IFF) judiciously for accurate B2B invoice reporting. If technical issues arise, refer to the GST portal’s help section or seek assistance from a GST practitioner. Table: Troubleshooting Common QRMP Filing Issues| Issue | Solution |
| Invoice Mismatches | Regular reconciliation and accurate reporting |
| ITC Claim Discrepancies | Careful review of GSTR-2B and IFF entries |
| Technical Glitches | Use GST help resources or professional assistance |
Conclusion
Understanding and efficiently implementing the QRMP filing procedure is pivotal for eligible taxpayers to streamline their GST compliance. This guide has walked you through the QRMP submission process, detailing the steps to file QRMP, and providing insights into the QRMP e-filing steps. Remember, the key to successful QRMP compliance lies in timely actions, accurate record-keeping, and staying updated with GST regulations. By following these best practices to make the most of the QRMP scheme, ensuring your business stays compliant with minimal hassle.| Best Practice | Benefit |
| Timely Filing and Payment | Avoids interest and late fees |
| Accurate Record-Keeping | Ensures correct tax liability and ITC claims |
| Regular Updates on GST Rules | Keeps business compliant with latest changes |
Frequently Asked Questions (FAQs)
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What is the QRMP filing procedure for new taxpayers?
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How do I complete the QRMP submission process?
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What are the essential steps to file QRMP?
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How can small business owners file QRMP?
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What are the QRMP e-filing steps?
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How to submit QRMP returns online?
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What should I do if I face issues during the QRMP filing process?
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Are there any tips for smooth QRMP submission?
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How can I avoid penalties in the QRMP scheme?
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What are the advantages of using the QRMP scheme?
Unlock the benefits of the QRMP scheme for smoother GST returns and payments.
