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What is QRMP scheme
Hemlata Khandelwal / 2021-03-08 10:43:09

  1. What is the QRMP Scheme? What is the benefit of this?
The quarterly return, monthly payment tax (QRMP) scheme is a plan to ease compliance for small taxpayers. Under this scheme, the taxpayers do the total business on the PAN
Level up to Rs. Rs 5 crore can opt for quarterly GSTR-1 and GSTR-3B filing. Payment can be made within the first two months by a simple invoice in FORM GST PMT-06. For ease of taxpayers, the system automatically assigns quarterly frequency to small taxpayers
 
  1. Why a taxpayer is assigned a quarterly filing without opting for the same?
Taxpayers eligible for the simplified compliance scheme were assigned quarterly frequency by the GST system. They were informed by e-mail and SMS regarding the assigned frequency.
 
  1. Why is the quarterly frequency assigned to me by the system even though my total turnover by PAN is more than Rs 50 million?
For the purpose of determining eligibility for the QRMP, the turnover was determined based on the prices declared by the taxpayers. If a component of turnovers, such as exemption or non-GST turnover, was not declared by the taxpayer in GSTR-3B or declared in the next financial year, then the turnover calculated by the system for such taxpayers is less than 5 crores rupees. Such taxpayers can be assigned to the QRMP based on the values ??declared by them in GSTR-3B. Such taxpayers have been advised to opt-out of the quarterly Apr-21 plan by 30 April 2021.
 
  1. Why have I been assigned monthly frequency by the system even when my aggregate turnover on PAN is up to Rs. 5 crores?
At the time of assigning the frequency by the system, considered the aggregate turnover of the taxpayer and the filing status of FORM GSTR-3B for the month of October 2020. If the said GSTR3B was not filed till 30th November 2020, the taxpayer was assigned to a monthly frequency.
The system allows the taxpayer to opt for this scheme only when the last applicable return in FORM GSTR-3B, whose due date is over, is filed.
 
Illustration:
  1. If the taxpayer is trying to opt for the QRMP scheme, on April 25, on April 25, from the quarter April-June 21, it will be allowed only if the return of Form GSTR-3B is made for January 21.
  2. If the taxpayer is trying to select the QRMP scheme on 19 April, from QR Apr-Jun'21 on 19 February, it will be allowed only when the return of Form GSTR-3B is filed for the month.
 
  1. I want to opt-out of the QRMP plan and become a monthly filer. Why is the portal not allowing me to do the same for the quarterly Jan-Mar, 2021?
 
  • The last date for choosing or changing the filing frequency for the quarter from January to March 2021 was January 31, 2021. After 31 January 2021, the filing frequency cannot be changed for the quarter. January to March 2021.
  • • However, taxpayers may change their filing frequency from the first February 2021 to the 30 April 2021 quarterly to monthly for the quarter from April to June 2021.
  • It may be noted that profile selection is not a recurring requirement every quarter. Once a frequency is selected, it is applicable for all future periods until further changed.
 
  1. What is IFF? Is this another compliance requirement?
Challan Furnishing Facility (IFF) is an optional facility provided as per Rule-59 (2) of CGST Rules, 2017. It is provided for taxpayers who wish to give input tax credit (ITC) to their recipients (buyers/customers) in the first two months of a quarter. Since IFF is an optional feature, there is no additional compliance burden. It is a facility for quarterly filers who intend to pass ITC to their recipients in the first two months of the quarter. It may be noted that since the IFF is an optional feature, the IFF for one month will expire after the 13th of the following month, and cannot be filed.
 
  1. Is IFF filing compulsory or optional?
Challan Furnishing Facility (IFF) is an optional facility for taxpayers who wish to give Input Tax Credit (ITC) to their recipients (buyers/customers) in the first two months of the quarter. Taxpayers who do not have to pass credit to their recipient are not required to file an IFF in the first two months of the quarter. They can announce their outward supply in the quarter FORM GSTR-1. It may be noted that since the IFF is an optional feature, the IFF for one month will expire after the 13th of the following month, and cannot be filed after this date.
 
  1. How do I pay my liability in the first two months of the quarter?
 In the first two months of the quarter, liability can be paid by either of the following two methods:
 
  1.  Fixed Even Method:
The portal will generate a pre-filled challan in the form of GST PMT-06. System-generated pre-filled invoices, in this case, are also commonly referred to like 35% invoices.
  1. Self-Assessment Method:
The actual tax due on the invoice is paid through the challan in Form GST PMT-06, which considers the tax liability on incoming and outgoing supplies and the input tax credit available for the period as per law.
The due date for payment by challan is the 25th of the following month.
 
  1. What is a certain amount of payment?
In the fixed amount method, the taxpayer has to pay a system-generated invoice in the first two months of the quarter. In this case, the pre-filled invoice generated system is also commonly known as 35% invoice. If the amount method set by the taxpayer is chosen and no ITC is passed in that month, there is no other compliance requirement in the first two months of the quarter, other than paying the system-generated invoice.
 
  1. How is the 35% invoice calculated under the fixed amount method?
Under the fixed amount method, 35% of invoices are calculated by one of the following methods, based on the frequency of filing in the previous quarter.
 
Method (A):
An amount equal to the amount paid as tax from the electronic cash burner of the GSTR-3B return for the last month of the previous quarter, where the GSTR-3B return was presented on a monthly basis.
 
Illustration:
The taxpayer paid the liability by paying the cash amount. 5500 / - [IGST: Rs. 2,000 / -, CGST: Rs. 1,000 / -, SGST: Rs. 2,500 / - in monthly GSTR-3B for December 2020] 35% challan generated as per the prescribed amount method for the January to March 2021 quarter Rs. 5,500 / - with the same head-wise break-up.
 
Method (B):
35% of the amount paid as tax from the electronic cash bearer in their return for the preceding quarter, where the GSTR-3B return was furnished on a quarterly basis; Or it may be noted that since the QRMP scheme has been introduced in January 2021, all taxpayers were monthly Filer in December 2020. Therefore, 35% of the invoices will be populated according to a method (a) for the quarter from January to March 2021 for quarterly filers.
 
Illustration:
The taxpayer paid the liability by paying the cash amount. 7000 / - [IGST: Rs. 1,000 / -, CGST: Rs. 2,000 / -, SGST: Rs. 4,000 / - in quarterly GSTR-3B for January to March 2021]. The 35% invoice generated as per the prescribed amount method for the quarter from April to June 2021 was Rs. 2,450 / - [IGST: Rs. 350 / -, CGST: Rs. 700 / -, SGST: Rs. 1,400 / -].
 
  1. If I opted for QRMP how do I announce B2C supply at IFF for the first two months of the quarter?
Supplies given to unregistered persons (also called B2C supplies) do not need to be declared in the IFF. These can be declared in the FORM GSTR-1 for the quarter.
 
  1. How will I merge the values ??declared in IFF & GSTR-1 with the quarterly GSTR-3B?
Online GST Registration holder will be provided with a draft GSTR-3B, which details the liability to be paid by the taxpayers in the quarterly GSTR-3B. It will be prepared on the basis of the supplies announced in FORM GSTR-1 for the quarter. If any is filed in the first two months of the quarter, it will also contain optional IFF data. The above system calculation values ??will also be auto-populated in the quarterly GSTR-3B.
 
  1. How do I claim ITC for the first two months of the quarter?
In the first two months of the quarter, there is no need to make any announcement related to ITC. The ITC available for the entire quarter will be made available by the system in the quarter FORM GSTR-2B.
This quarterly facility will be in addition to the FORM GSTR-2B being provided on a monthly basis, which can still be used for self-assessment.
 

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