Central Govt to launch QRMP scheme for GST Taxpayers w.e.f 1 Jan 2021. QRMP stands for Quarterly Return Filing & Monthly Payment of Taxes. From 1 January, people will have to file only 4 GSTR-3B returns instead of 12. As per the Department of revenue (DoR) sources, it is expected that the scheme would impact 9.4 million taxpayers. These number of tax payers constitute approx. 92% of the total tax base of the Goods and Services Tax (GST).
QRMP Scheme for GST Taxpayers
QRMP Scheme for GST Taxpayers comes in a bid to ease the return filing experience of Goods and Service Tax (GST) taxpayers. Quarterly Return Filing and Monthly Payment of Taxes Scheme will come into effect from 1 January 2021. Around 9.4 million taxpayers (92% of the total tax base of GST) having an annual aggregate turnover (AATO) of up to Rs 5 crore would be covered in this scheme.
Returns in Quarterly Return Monthly Payment Scheme
With the introduction of the QRMP scheme, small taxpayers would need to file only 8 returns. It includes 4 GSTR-3B (existing 12 GSTR-3B) and 4 GSTR-1 (existing 4 GSTR-1) returns. These 8 returns are far simpler than existing requirement of 16 returns in a financial year. The new scheme would also significantly reduce taxpayers professional expenses on return filing. This is because the GST taxpayers would have to file just half the number of returns as against the current requirement of 16.
Portal for Quarterly Return Filing & Monthly Payment of Taxes Scheme
The QRMP scheme would be available on the common GST portal https://www.gst.gov.in/ with the facility to opt-in and opt-out and opt-in again, as per a taxpayer’s wishes. The Quarterly Return Monthly Payment Scheme would bring in the concept of providing input tax credit (ITC) only on reported invoices. This QRMP Scheme for GST Taxpayers will put a curb on the menace of fake invoice frauds.
Features of QRMP Scheme for GST Tax Payers
QRMP scheme is also likely to have the optional feature of Invoice Filing Facility. The new IFF feature will mitigate the business-related hardships of the small and medium taxpayers. Under the IFF, taxpayers who opt to file their returns quarterly would be able to upload and file such invoices even in the first and second month of the quarter for which there is a demand from the recipients.
The taxpayers won’t need to upload and file all the invoices of the month. Only those invoices, which are required to be filed in IFF as per the recipients’ demands, are to be uploaded. The remaining invoices of the first and second months can be uploaded in the quarterly GSTR-1 return.
The QRMP scheme is based on the existing return system with suitable modifications in a bid to give much-needed flexibility to the small and medium enterprises with regards to GST compliance. It was approved in principle by the GST Council in its 42nd meeting on 5 October 2020.
For more details, visit the official website at https://www.gst.gov.in/