QRMP Scheme – A beneficial scheme for small and middle- level businesses and traders
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A registered person who need to file a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. The aggregate annual turnover for the preceding financial year shall be calculated in the common GSTN portal taking into account the details furnished in the returns by the taxpayer for the tax periods in the preceding financial year. This new Scheme will be effective from 01.01.2021. Further, in case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.
This scheme is a beneficial for small and middle level businesses and traders who is a GST registered person.
Following are some benefits of this scheme –
- The possibility of mismatch of input credit in GSTR – 2 will reduced due to monthly IFF (Invoice Furnishing Facility). In QPRM Scheme GST Invoices will uploaded in IFF on monthly basis so that input credit show in GSTR 2A and GSTR 3B of concerned recipients.
- The chances of Late Fees due to non-filling of GSTR – 3B will reduce. When a person opt QRMP scheme, he have to filling GSTR 3B on quarterly basis. Currently, when a person missed his monthly GSTR-3B he has to pay monthly return penalty but when QRMP opt he have to filling 1 quarterly return so return penalty will reduced .
- Chances of variation in invoices and input credit will go down because of monthly invoice uploaded.
- Pressure of filling monthly GSTR 3B will reduce. Currently it is very hectic process for GST professionals.
- It is an optional scheme. A registered person can switch back to the option of monthly return once he has opted for the QRMP scheme.
Following are some drawback of this scheme –
- Work load for GST Professional including accountants will increase due to IFF and new tax payment methods.
- This scheme difficult for understand to registered person.
Conclusion - Overall it is a good scheme for small and middle GST registered person.
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