The Goods & Service Tax (GST), which was rolled out PAN India as ‘One Nation One Tax’ has been looked by small and medium businesses as complicated and burdening compliance. The GST Reform has been introduced aiming to bring trade transparency and facilitation, but due to this compulsory requirement of monthly return filings, the GST reform, instead of making business compliances easy, is being perceived as making businesses busy in frequent compliances including return filings.
As a welcoming step towards the “ease of doing business” for small enterprises, the CBIC has introduced Quarterly Return Monthly Payment Scheme (QRMP scheme). QRPM scheme is introduced for small businesses having an annual aggregated turnover of up to INR 5 Crores. The QRPM scheme has been rolled out vide Circular No. 20/01/08/2020- GST on November 10th, 2020. The Scheme is applicable with effect from January 01, 2020. The scheme enables the small taxpayers to file their GST Return (GSTR 3B) on a quarterly basis, which otherwise was filed monthly basis.
Our team of experts did a detailed analysis of the scheme and have summarized the important points in our monthly newsletter for the month of December 2020, we recommend reading the details of the scheme in the below link:
DECEMBER 2020 Newsletter
In the QRPM scheme, the government is trying to bring in smoother and hassle-free GST compliance
experience for small taxpayers by adding the below new features:
- In the QRPM scheme, government has introduced concept called “Invoice Furnishing Facility” (IFF), it is expected that using IFF, the possibility of mismatch of input credit in GSTR-2 will be reduced to a greater extent as the supplier will have an option to upload the GST Invoices (for selected transactions) on a monthly basis so that the GST input credit appears in the GSTR 2A statement of the concerned recipients.
- Under the QRPM scheme, a small taxpayer will be required to file their GSTR 3B on a quarterly basis (currently it is monthly filing), it will lead to reduction in compliance burden of the small taxpayer and it will definitely save time and is expected to be more convenient.
- The small taxpayer will have the option to choose from two monthly payment options i.e., Fixed Sum Method and Self-Assessment Method. Additionally, in case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due (for the first month or cumulative dues in the second month) or where there is a nil tax liability, the registered person may not deposit any amount for the said months. This will surely improve the cash flow position of the small taxpayers.
- QRPM is an optional scheme. A registered person can switch back to the option of monthly return once he has opted for the QRMP scheme.
The change in GST filing rules is a welcoming step and it is a need of the hour to ease the procedures. After these changes, small taxpayers need to file the returns quarterly instead of monthly which will save time and will be more convenient.
