Explore the QRMP scheme under GST for small taxpayers with turnover up to ₹5 crore, allowing quarterly return filing and monthly tax payments.
Who is Eligible for the QRMP Scheme?
How to Exercise Option for QRMP Scheme?
Deemed Monthly/Quarterly Filing of GSTR-3B
How to Submit Details of Outward Supplies?
How to make Monthly tax Payments under the QRMP Scheme?
Due Dates for Filing Quarterly GSTR-3B
Input Tax Credit Claims under QRMP Scheme
Interest under QRMP Scheme
Late fee under QRMP Scheme
Issues or Challenges under QRMP
How Clear Helps QRMP Taxpayers?
FAQs on QRMP Scheme
Eligibility Criteria
The QRMP scheme is designed for small taxpayers under GST.
Taxpayers with an aggregate turnover up to ₹5 crore in the preceding financial year.
Eligibility is determined based on the turnover reported in GSTR-3B returns.
If turnover exceeds ₹5 crore during the current financial year, the taxpayer becomes ineligible from the next quarter.
Optional Scheme
Participation in the QRMP scheme is voluntary.
Taxpayers can choose to opt-in or opt-out of the scheme.
The option is exercised on a GSTIN basis.
Once opted, taxpayers must continue quarterly filing unless ineligible.
Ineligibility Conditions
Certain conditions can render a taxpayer ineligible.
Failure to furnish the last due GSTR-3B return.
Crossing the turnover threshold of ₹5 crore.
Non-compliance with GST return filing requirements.
Worked Example
Illustration of eligibility determination.
A taxpayer with a turnover of ₹4.8 crore in FY 2024-25 is eligible for FY 2025-26.
If turnover reaches ₹5.2 crore in Q1 of FY 2025-26, ineligibility starts from Q2.
Eligibility is reassessed annually based on previous year’s turnover.
Opt-in Period
Taxpayers must choose their filing frequency within a specific timeframe.
The option can be exercised from the 1st of the second month of the preceding quarter.
Deadline is the last day of the first month of the quarter for which the option is exercised.
Example: For Apr-Jun 2025, opt between 1st Feb 2025 and 30th Apr 2025.
Process on GST Portal
Steps to opt for the QRMP scheme on the GST portal.
Log in to the GST portal using your credentials.
Navigate to 'Services' > 'Returns' > 'Opt-in for Quarterly Return'.
Select the desired filing frequency and submit.
Conditions for Opting
Requirements to be fulfilled before opting.
Ensure all previous returns are filed up to date.
Check turnover limits for eligibility.
Verify GSTIN details for accuracy.
Changing Filing Frequency
Procedure to change from quarterly to monthly filing.
Changes can only be made at the beginning of a quarter.
Submit a request through the GST portal.
Ensure compliance with eligibility criteria for the new frequency.
Filing Frequency
Understanding the filing frequency under the QRMP scheme.
Quarterly filing of GSTR-3B is allowed for eligible taxpayers.
Monthly tax payments are still required despite quarterly filing.
Deemed monthly filing occurs if no option is exercised.
Auto-Population of Data
How data is managed in the GST portal.
Data from GSTR-1 and IFF is auto-populated in GSTR-3B.
Ensures consistency and reduces manual entry errors.
Amendments can be made through GSTR-1A if needed.
Impact on Compliance
Compliance requirements under the QRMP scheme.
Quarterly filing reduces the frequency of returns.
Monthly payments ensure regular cash flow to the government.
Non-compliance can lead to penalties and interest charges.
Worked Example
Example of quarterly vs monthly filing.
A taxpayer opts for quarterly filing for Q1 FY 2025-26.
GSTR-3B is filed in July 2025 for Apr-Jun 2025.
Monthly payments for April, May, and June are made separately.
Using Invoice Furnishing Facility (IFF)
IFF is used for reporting outward supplies in the first two months of a quarter.
Allows monthly reporting of invoices for B2B supplies.
Helps in claiming Input Tax Credit (ITC) by the recipient.
IFF is optional but recommended for better ITC flow.
GSTR-1 Filing
Details of outward supplies are filed quarterly in GSTR-1.
Includes all B2B, B2C, and export invoices.
Filed by the 13th of the month following the quarter.
Ensures complete reporting of outward supplies.
Amendments through GSTR-1A
Process for amending reported supplies.
GSTR-1A allows amendments to previously reported data.
Available after filing GSTR-1 or its due date.
No separate amendment facility for IFF-reported supplies.
Worked Example
Example of submitting outward supplies.
A taxpayer reports ₹1 lakh B2B sales in April via IFF.
In GSTR-1 for Q1, total outward supplies are ₹3 lakh.
Amendments made in GSTR-1A for any discrepancies.
Payment Methods
Options available for making monthly tax payments.
Fixed Sum Method (FSM) based on 35% of the net cash liability of the previous quarter.
Self-Assessment Method (SAM) based on actual tax liability.
Payments to be made using Form GST PMT-06.
Due Dates for Payment
Timelines for making monthly tax payments.
Payments are due by the 25th of the succeeding month.
Timely payment avoids interest charges.
Ensure sufficient balance in the electronic cash ledger.
Interest on Late Payment
Consequences of delayed payments.
Interest at 18% per annum is levied on late payments.
Calculated from the due date until the actual payment date.
Ensure timely payments to avoid additional costs.
Worked Example
Illustration of monthly tax payment calculation.
A taxpayer with a net cash liability of ₹1 lakh in Q1 FY 2025-26.
Using FSM, monthly payment is ₹35,000 (35% of ₹1 lakh).
Payments made in April, May, and June using Form GST PMT-06.
Quarterly Filing Schedule
Timelines for filing GSTR-3B under the QRMP scheme.
GSTR-3B for Q1 (Apr-Jun) is due by 22nd or 24th July.
GSTR-3B for Q2 (Jul-Sep) is due by 22nd or 24th October.
GSTR-3B for Q3 (Oct-Dec) is due by 22nd or 24th January.
State-wise Due Dates
Different due dates based on state/UT.
Due dates vary for states in Group 1 and Group 2.
Group 1 states have a due date of 22nd of the month.
Group 2 states have a due date of 24th of the month.
Compliance with Due Dates
Importance of adhering to due dates.
Timely filing avoids late fees and penalties.
Ensures smooth ITC flow for recipients.
Maintains compliance record with GST authorities.
Worked Example
Example of quarterly GSTR-3B filing.
A taxpayer in Maharashtra files GSTR-3B for Q1 by 22nd July.
Ensures all outward supplies and ITC are accurately reported.
Avoids late fees by adhering to the due date.
Eligibility for ITC
Conditions for claiming ITC under QRMP.
ITC can be claimed on inward supplies used for business.
Must be supported by valid tax invoices.
Supplier must have filed GSTR-1 for the relevant period.
Monthly ITC Claims
Process for claiming ITC on a monthly basis.
ITC can be claimed monthly based on IFF data.
Ensures continuous ITC flow for business operations.
Reconcile with GSTR-2B for accurate claims.
Quarterly ITC Reconciliation
Reconciliation of ITC on a quarterly basis.
Reconcile ITC claimed with GSTR-3B and GSTR-2B.
Identify discrepancies and make necessary amendments.
Ensure compliance with ITC eligibility rules.
Worked Example
Example of ITC claim and reconciliation.
A taxpayer claims ₹50,000 ITC in April based on IFF.
Reconciles total ITC of ₹1.5 lakh in GSTR-3B for Q1.
Identifies and corrects discrepancies in GSTR-1A.
Interest on Late Payment
Interest implications for delayed tax payments.
Interest at 18% per annum is charged on late payments.
Calculated from the due date until the payment date.
Applies to both fixed sum and self-assessment methods.
Interest on Excess ITC Claims
Interest on wrongly claimed ITC.
Interest at 24% per annum on excess ITC claimed.
Calculated from the date of claim until reversal.
Ensure accurate ITC claims to avoid interest charges.
Worked Example
Illustration of interest calculation.
A taxpayer delays payment of ₹50,000 by 10 days.
Interest charged is ₹246 (₹50,000 x 18% x 10/365).
Timely payments avoid such additional costs.
Interest Waiver Conditions
Conditions under which interest may be waived.
Government notifications may waive interest for specific periods.
Check for any relief measures announced during the financial year.
Ensure compliance with waiver conditions to benefit.
Late Fee for GSTR-3B
Penalties for late filing of GSTR-3B.
Late fee of ₹50 per day for nil returns.
₹100 per day for returns with tax liability.
Maximum late fee capped at ₹5,000.
Late Fee for GSTR-1
Penalties for late filing of GSTR-1.
Late fee of ₹50 per day for nil returns.
₹100 per day for returns with outward supplies.
Maximum late fee capped at ₹5,000.
Worked Example
Example of late fee calculation.
A taxpayer files GSTR-3B 5 days late with tax liability.
Total late fee is ₹500 (₹100 x 5 days).
Timely filing avoids such penalties.
Late Fee Waiver Conditions
Conditions under which late fees may be waived.
Government may announce waivers for specific periods.
Check for any relief measures applicable to your case.
Ensure compliance with waiver conditions to benefit.
Technical Glitches
Common technical issues faced by taxpayers.
Portal errors during filing and payment processes.
Difficulty in accessing IFF and GSTR-1A.
GSTN advisories provide updates on resolutions.
Compliance Burden
Challenges in maintaining compliance.
Ensuring timely filing and payment to avoid penalties.
Reconciliation of ITC claims with supplier data.
Managing cash flow with monthly payments.
Understanding Scheme Provisions
Complexities in understanding QRMP provisions.
Confusion over eligibility and filing options.
Need for professional guidance for accurate compliance.
Regular updates and training can help mitigate issues.
Worked Example
Example of resolving a technical issue.
A taxpayer faces portal error while filing GSTR-3B.
Contacts GSTN helpdesk for resolution.
Issue resolved by following advisory instructions.
Automated Filing Solutions
Clear provides automated solutions for GST filing.
Upload CSV files for bulk GSTIN updates.
Automated data population for GSTR-3B and GSTR-1.
Reduces manual errors and saves time.
Compliance Monitoring
Tools for monitoring compliance status.
Track filing status and due dates.
Receive alerts for upcoming deadlines.
Ensure timely compliance to avoid penalties.
Professional Support
Access to expert support for GST queries.
Get assistance from GST professionals.
Resolve technical and compliance issues.
Stay updated with the latest GST changes.
Worked Example
Example of using Clear for QRMP compliance.
A business uses Clear to file GSTR-3B for Q1.
Automated data entry reduces filing time by 50%.
Receives timely alerts for monthly tax payments.
What is the QRMP scheme under GST?
The QRMP scheme allows taxpayers with turnover up to ₹5 crore to file GSTR-3B quarterly while making monthly tax payments. It aims to reduce compliance burden for small taxpayers.
Who can opt for the QRMP scheme?
Taxpayers with an aggregate turnover of up to ₹5 crore in the preceding financial year can opt for the QRMP scheme. Eligibility is determined based on turnover reported in GSTR-3B.
How do I opt for the QRMP scheme?
To opt for the QRMP scheme, log in to the GST portal, navigate to 'Services' > 'Returns' > 'Opt-in for Quarterly Return', and select your desired filing frequency.
What are the due dates for filing GSTR-3B under QRMP?
For the QRMP scheme, GSTR-3B is due by the 22nd or 24th of the month following the quarter, depending on the state group.
How are monthly tax payments made under QRMP?
Monthly tax payments can be made using the Fixed Sum Method (35% of previous quarter's liability) or Self-Assessment Method, using Form GST PMT-06 by the 25th of the month.
Can I claim ITC monthly under QRMP?
Yes, ITC can be claimed monthly based on IFF data, ensuring continuous ITC flow. Reconcile with GSTR-2B for accurate claims.
What is the late fee for delayed GSTR-3B filing?
The late fee for delayed GSTR-3B filing is ₹50 per day for nil returns and ₹100 per day for returns with tax liability, capped at ₹5,000.
How does Clear assist QRMP taxpayers?
Clear provides automated GST filing solutions, compliance monitoring tools, and professional support to help QRMP taxpayers manage their GST obligations efficiently.