There is confusion in every GST enrolled individual and professional furnishing of GST returns in the current times to which the policy is to be taken, QRMP policy, or the monthly 3B system such as in Income Tax, the incorporation of the new income tax slab regime
Indeed the assessee whose turnover is under or equal to 5 cr has the choice to file the GST return system on monthly or quarterly grounds. This discussion will come across covering numerous QRMP policy-related issues.
On Which Individual the QRMP Policy is to be Executed?
According to the Notification 84/2020, Central Tax dated 10.11.2020, the turnover in the previous fiscal year of Rs 5 cr is concerned to have the following choices.
- Monthly GSTR 1 and GSTR 3B
- New QRMP Scheme
Know the everything about QRMP (Quarterly Return Filing & Monthly Payment) Scheme under GST. Also, we have included the alternation and payment of tax under QRMP. Read more
What do You Mean by the Latest QRMP Policy?
The full form of QRMP is a Quarterly Return Monthly payment policy in which an enrolled assessee needs to furnish the GSTR 1
Comparison of QRMP Policy & Old Policy Towards the Small Assessee
There is a peculiarity beneath the old policy of the quarterly furnished of the GSTR-1 and monthly GSTR 3B or the assessee who has the turnover of Rs 1.50 cr who has chosen the quarterly furnishing policy towards GSTR-1 and who build the sales to the enrolled assessee were not able to get the credit for these sales to build to them because it is not being shown in GSTR 2A and 2B
Beneath the latest policy of QRMP, the GSTR-1 along with GSTR-2 needs to be furnished on the quarterly grounds and the option to change these invoices on the monthly grounds is not much more important. Indeed the assessee needs to furnish GST on the monthly grounds beneath Challan PMT 06 on the grounds of the self-assessment or on the minimum of 35% of the total tax liability so as to avoid the interest liability according to the procurement of the act. Indeed the turnover limit needs to rise to Rs 5 cr.
So is There a Need to Choose the QRMP Policy or Not?
If you are liable to choose the policy then the mentioned advantages strongly suggest you must choose for the policy:-
A. IFF i.e. Invoice furnishing scheme (Optional) is present on the monthly grounds in which the input can be availed on the invoices via your enrolled parties beneath GSTR 3B form
B. PMT 06 Amount of 35% of cumulative tax liabilities of the prior period as calculated automated or on grounds of self-assessment and which too by 25th of next month then no interest liabilities according to the act. From this provision, the assessee has been reduced with the load beneath the policy.
Option
1 Option: 35% CHALLAN
2 Option: self-analysis CHALLAN
3 On the quarterly grounds filing the GSTR 3B and GSTR 1.
4 Diminishing compliances towards the small and medium assessee which is Upto Rs 5 cr.
5 Do QRMPs must be chosen by the exporters?
As the exporters get the refund of IGST furnished on the export of the goods through furnishing GSTR 3B and GSTR 1, those will not be chosen for this policy as it will delay the refund procedure.
6 Does this policy be chosen at any time as well as do we amend the choice in the next quarter?
Because of the following timelines, the assessee can opt-in/opt-out of this policy post every quarter
- For FY 2020-2021
- For FY 2021-2022
- What is the procedure to opt-in/opt-out of QRMPs?
Taxpayer need to login to GST Portal & follow the steps as below-
- Go to Services Menu
- Select Returns
- Select option: Opt-in for Quarterly Return
- Choose Financial Year
What are the Outcomes of the Late Payment in QRMPs?
Interest payment beneath the two choices open in QRMP policy will be mentioned as:
35% Challan: If the payment is done by 25th of next month, there should be no interest levied for the selected month as per the law.
Self-assessment basis challan: If there is short payment or late payment, there should be interest levied as per the law if the payment is made via different mode other than 35% challan.
Conclusion
The introduction of the QRMP policy must be a welcome policy through the industry. From this there is a reduction in compliances and the consumption of the time for preparation and GST furnishing returns.