The Central Board of Indirect Taxes and Customs (CBIC) has introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under the Goods and Services Tax (GST) for the benefit of small taxpayers with a turnover of less than Rs. 5 crores. This initiative allows businesses to file GST returns every quarter, reducing both costs and administrative burdens associated with monthly filing. This article delves into the details of the GST Quarterly Return Filing Option for Small Business Owners. 

TaxQue facilitates a simplified GST return filing process for businesses.

GST Return Overview: GST returns are essential documents for businesses registered under India's GST system. These returns include details of financial transactions such as sales, purchases, tax collected, and tax paid. The filing frequency is determined by the size and type of the business, with returns submitted either monthly or quarterly.

Small Taxpayers Defined: Small taxpayers are individuals or businesses with an annual turnover of up to Rs. 5 crores in the previous financial year. They have the flexibility to choose between quarterly and monthly filing options. The quarterly filing options include GSTR-Quarterly, GSTR-Sahaj, and GSTR-Sugam, each catering to different business complexities.

Introduction to the Quarterly Return Filing Scheme: The QRMP scheme allows eligible taxpayers with a turnover of up to Rs. 5 crores to file GSTR-1 and GSTR-3B returns quarterly, providing relief from monthly filings. This scheme facilitates monthly tax payments using either a fixed sum method or self-assessment method.

Under QRMP, taxpayers remain in the scheme until they surpass the turnover threshold or choose to opt-out.

Eligibility for QRMP Scheme: The QRMP scheme is available for registered persons with an aggregate annual turnover (AATO) up to Rs. 5 Crore in the previous fiscal year. Those obtaining new GST registration or opting out of the GST Composition Scheme can also opt for QRMP.

Opting In and Opting Out: Taxpayers can enroll in the QRMP scheme through the GST portal by navigating to Services > Returns > Opt-in for Quarterly Return. This choice must be made between the 1st of the second month of the preceding quarter and the last day of the first month of the quarter for which the option is being exercised. The same process is followed to exit the QRMP scheme.

Benefits of QRMP Scheme for Small Business Owners:

• -        Reduced Compliance Burden: The quarterly filing option reduces the compliance burden on small businesses, allowing them to allocate resources more efficiently.

• -        Financial Planning: Extended filing periods enable better financial planning, helping small business owners manage cash flows effectively.

• -        Time Savings: Small business owners can save valuable time by focusing on core business operations instead of excessive tax compliance activities.

• -        Ease of Implementation: Simplified documentation and reduced filing frequency make it easier for small businesses to adopt the quarterly return filing option without extensive financial expertise.

Methods of Making Payment:

1. Fixed Sum Method (FSM):

   - Pre-filled challan for 35% of the tax amount paid in cash during the previous quarter (for quarterly filers).

   - Challan for the total tax amount paid in cash during the last month of the previous quarter (for monthly filers).

2. Self-Assessment Method (SAM):

   - Taxpayers calculate tax liability on inward and outward supplies.

   - Deposit tax using form GST PMT-06 by the 25th of the following month for the first and second months of the quarter.

Late Fees for Delay in Filing:

Late fees apply based on tax liability and are subject to a maximum penalty of Rs. 5,000.

The QRMP scheme provides a significant advantage by allowing quarterly GST return filing, reducing costs and burdens associated with monthly returns. This scheme is particularly beneficial for small businesses, simplifying the GST compliance process and minimizing errors and disputes. Businesses with simpler transactions find the QRMP scheme especially advantageous, contributing to smoother interactions between suppliers and buyers.

QRMP scheme is a valuable option for small businesses, offering streamlined GST compliance and minimizing potential errors and disputes. For expert assistance in QRMP scheme GST return filing, businesses can turn to TaxQue, which understands the unique needs of small taxpayers and provides comprehensive support.