All you need to know about opting in or out of the QRMP scheme

All you need to know about opting in or out of the qrmp scheme
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All you need to know about opting in or out of the QRMP scheme

What needs to be done by the taxpayers who were migrated by default to the QRMP scheme for the Quarter Jan-Mar 2021?

As a part of the introduction of the QRMP scheme, taxpayers who were registered as regular taxpayers and whose annual aggregate turnover was up to Rs 5 crores were migrated to file either monthly returns in (GSTR1+GSTR3B) or quarterly returns in (GSTR 1+ GSTR 3B) based on the annual aggregate turnover & the frequency of Form GSTR 1  furnished by the taxpayer currently.

Taxpayers whose annual aggregate turnover is up to Rs. 1.5 crores

GSTR-1 (Now) Classified by default under the QRMP scheme
Monthly Monthly taxpayer for filing returns

(Monthly GSTR 1 + Monthly GSTR 3B)

Quarterly Quarterly taxpayer for filing returns

(GSTR 1 + GSTR 3B + Monthly payment in PMT 06)

If the taxpayer intends to change the default category assigned by the portal, then the option needs to be changed on the GST portal before 31st January 2021 for the quarter Jan-Mar 2021.

Taxpayers whose annual aggregate turnover is more than Rs 1.5 crores but up to Rs. 5 crores

GSTR-1 (Now) Classified by default under the QRMP scheme
Monthly Quarterly taxpayer for filing returns

(GSTR 1 + GSTR 3B + Monthly payment in PMT 06)

If the taxpayer intends to change the default category assigned by the portal, then the option needs to be changed on the GST portal before 31st January 2021 for the quarter Jan-Mar 2021.

Where is the option to opt-in and opt-out of the QRMP Scheme?

A taxpayer has to log in on the GST portal with valid login credentials and then on the dashboard navigate to Services>Returns>Opt-in for Quarterly return

Then select either of the options

  • Opt-in of the QRMP Scheme

OR

  • Opt-out of the QRMP Scheme

Note: A GST Practitioner will not be permitted to select the option of opting-in or opting-out of the QRMP scheme on behalf of the taxpayer.

When can one opt-in or opt-out of the QRMP scheme?

One can opt-in or opt-out of the scheme at any during the year. But the date of selecting the option to opt-in or opt-out will determine the quarter from which it will be made applicable.

It will be effective for the quarter If you opt-in or opt-out of the QRMP scheme in this period
Quarter (Apr-Jun) 1st Feb to 30th Apr
Quarter (Jul-Sep) 1st May to 31st Jul
Quarter (Oct-Dec) 1st Aug to 31st Oct
Quarter (Jan-Mar) 1st Nov to 31st Jan

Note: A taxpayer will be permitted to select and change from the two options available in the period available for the respective quarters mentioned in the table above.

For e.g. A taxpayer opts-in for the QRMP scheme in the month of February for the quarter(Apr-Jun) but later in the month of April intends to opt-out of the QRMP scheme for the Quarter(Apr-Jun) then the taxpayer can easily select the other option available and change.

 

Can a newly registered taxpayer opt-in for the QRMP scheme?

Yes, a taxpayer who is newly registered as a normal taxpayer will be permitted to opt-in for the QRMP scheme only if the registration is done up to the end of the first month of the quarter, otherwise, the QRMP scheme can be availed from next quarter.

For eg. If XYZ is granted registration on or before 31st January and the taxpayer opts-in for the QRMP scheme then the QRMP scheme will be available for the same quarter (i.e. Jan-Mar Quarter). But if registration is granted on or after 1st February then the taxpayer will be able to avail of the QRMP scheme from next quarter only(i.e. Apr-Jun Quarter).Click here to read more about : Advantages of Quarterly Return & Payment Scheme

 

Is there any restriction on the number of times the taxpayer can opt-in or opt-out of the QRMP scheme?

NO. A taxpayer will not be restricted from opting in or opting out of the QRMP scheme. Whatever option the taxpayer selects will be applicable for at least one quarter.

If a taxpayer intends to opt-out or opt-in the QRMP scheme then the corresponding option needs to be selected. Else taxpayer will continue to be in the same option for the next quarters as in the current quarter.

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About CA Ankita Khetan 165 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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