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Comparison Between QRMP Scheme & GSTR 3B Monthly


November 15, 2021

Comparison Between Qrmp Scheme

Comparison Between QRMP Scheme

& GSTR 3B Monthly

 

There is a dilemma for every taxpayer while they furnish their Goods and Services Tax returns whether to opt for QRMP Scheme or the GSTR 3B monthly system. Like in the income tax, the government has introduced New Tax Slab Regime with lower tax rates and it is up to the taxpayer to choose between the old and new tax slab regime. At present, in GST too, a registered taxpayer with a turnover up to 5 crores has a choice to opt for GST filing monthly or quarterly.

 

On whom the QRMP Policy is to be executed?

 

As per the notification 84/2020, central tax dated 10.11.2020, the turnover of 5 crores in the previous year will have these choices:

  • Monthly GSTR 1 and GSTR 3B.
  • New QRMPscheme

 

What does it mean by the latest QRMP policy?

 

QRMP scheme means Quarterly Return Monthly Scheme (QRMP) where a taxpayer should file GSTR 1 and GSTR 3B on Quarterly Basis and to Deposit Tax Monthly Basis (PMT 06) in addition to the option of submitting the invoices to registered taxpayers on monthly basis (IFF) is taxpayer’s disposal.

 

Comparison of QRMP policy & old policy

towards the small taxpayers

 

As per new the QRMP scheme, at present GSTR1 and GSTR3B should be filed on a quarterly basis only except there is a choice to provide invoices on monthly basis in addition to making changes in such invoices on monthly basis., is not compulsory. Besides, taxpayers have to make a monthly GST payment under challan PMT 06 based on self-assessment or a minimum 35 % total tax liability to avoid interest liability in accordance with the provision of the act. , moreover, the turnover has been increased to 5 crores.

According to the old scheme of Quarterly filing of GSTR 1 and Monthly GSTR 3B, there was a problem that small taxpayers with a turnover up to 1.50 crore who chooses Quarterly filing scheme for such sales made to them since they were not being shown in GSTR 2A and 2B of the mentioned taxpayers on monthly basis and thus they were going out of the business due to this reason that the people buying goods or services from such persons, unable to get GST input in GSTR 3B due to the introduction Rule 36 (4).

 

Whether to opt for the QRMP Policy or not?

 

If you are required to opt for the policy, then you have these benefits.

  1. Invoice furnishing scheme (IFF)  (which is Optional) is present on a monthly basis in which the input could be availed on the invoices through your enrolled parties under GSTR 3B Form as it would be displayed under GSTR 2A and GSTR 2B. The Due date is the 13th of next month.

 

  1. PMT 06 Amount of 35% of cumulative tax liabilities of the earlier period as calculated automated or on a self-assessment basis and which too by 25th of next month then no interest liabilities as per the act. From this provision, the assessee has been reduced with the load under the policy.

 

Option

 

1. Option: 35% CHALLAN

 

2. Option: self-assessment CHALLAN

 

3. filing the GSTR 3B and GSTR 1 on a quarterly basis.

 

4. Reduced compliances towards the small and medium assessee which is upto Rs 5 cr.

 

5. Whether QRMPs have to be chosen by the exporters?

 

If the exporters obtain the refund of IGST provided on the export of the goods through furnishing GSTR 3B and GSTR 1, they will not be chosen for this policy since it would delay the procedure of refund.

 

6. Whether this policy could be chosen at any time or do we modify the choice in the next quarter?

Because of the following timelines, the assessee can opt-in/opt-out of this scheme post every quarter

 

  • For FY 2020-2021
  • For FY 2021-2022

 

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