The Central Board of Indirect Taxes and Customs (CBIC) has implemented the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme in the GST framework, specifically designed to support small taxpayers with turnovers below Rs. 5 crores. This initiative offers the advantage of filing GST returns on a quarterly basis, alleviating the financial and administrative challenges typically associated with monthly return filing. This article delves into the option of Quarterly GST Return Filing for Small Businesses.
Introduction:
GST returns are essential documents for businesses operating under India’s Goods and Services Tax (GST) system, detailing financial transactions such as sales, purchases, tax collection, and payments. Small taxpayers, defined as individuals or businesses with an annual turnover up to Rs. 5 crores, now have the flexibility to choose between quarterly or monthly filing options.
Overview of the Quarterly Return Filing Scheme:
The Quarterly Returns Monthly Payment (QRMP) scheme, introduced by the Central Board of Indirect Taxes and Customs (CBIC), allows eligible taxpayers to file GSTR-1 and GSTR-3B returns every quarter. This alleviates the previous monthly filing obligation, providing a more manageable schedule for businesses with turnovers up to INR five crores.
Eligibility and Enrollment:
The QRMP scheme caters to registered persons with an aggregate annual turnover (AATO) up to Rs. 5 crores in the previous fiscal year. New GST registrants or those opting out of the GST Composition Scheme can also choose this scheme. The option can be exercised through the Goods and Services Tax Identification Number (GSTIN), allowing flexibility for businesses with multiple GSTINs under the same PAN.
Benefits for Small Business Owners:
- Reduced Compliance Burden: Significantly reduces compliance burdens, allowing efficient resource allocation.
- Financial Planning: Extended filing periods enable better cash flow management and understanding of tax obligations.
- Time Savings: Enables small business owners to focus on core operations rather than dedicating excessive time to tax compliance.
- Ease of Implementation: Simplified documentation and reduced filing frequency make it easier for small businesses to adopt the quarterly return filing option.
Payment Methods under QRMP Scheme:
Taxpayers enrolled in the QRMP scheme can make monthly tax payments using the Fixed Sum Method (FSM) or the Self-Assessment Method (SAM). FSM involves receiving a pre-filled challan based on the tax amount paid in the previous quarter, while SAM requires taxpayers to calculate their tax liability and use form GST PMT-06 for payment.
Late Fees for Delayed Filing:
Late fees apply for delayed filing, with different amounts specified for those with other than NIL tax liability and NIL tax liability, subject to a maximum penalty of Rs. 5,000.
Conclusion:
The QRMP scheme stands as a significant advancement in GST compliance, particularly benefiting small businesses by reducing the financial and administrative burdens associated with monthly returns. By offering a straightforward method for tax calculation, this scheme proves advantageous for businesses with simpler transactions, contributing to smoother supplier-buyer interactions and minimizing errors and disputes. Legal Parivar provides expert assistance in navigating the QRMP scheme, ensuring small businesses streamline their GST compliance effectively.
