QRMP Scheme v/s Monthly GSTR 3B

Which option to choose between QRMP scheme v/s. Monthly GSTR 3B system?

This article explains various aspects of comparison of newly introduced QRMPs scheme versus Monthly GSTR 3B system.

To reduce tax compliance burden on MSME entities, Govt. has introduced QRMPs w.e.f 01/01/2021. Since this is new scheme launched by government, many GST registered entities are still confused about which scheme to opt in/out, as QRMP is optional scheme which can be opted by GST registered entity with Turnover upto 5 crores. This article explains comparative analysis of various features of both QRMPs and Monthly Return Filing Scheme as well as differentiate between QRMPs v/s. Monthly 3B.

Both the schemes have its own merits and demerits, hence it is better to understand both the scheme well before opting the relevant one that is preferable to you/your client. Since there are wide difference in every business due to different models, availability of funds, payment terms with customers and suppliers, availability of skilled staff and professional consultants , hence one criteria can’t be adopted to choose between Monthly GSTR 3B & R1 v/s. QRMPs. However, we have tried to cover many aspects which may help you out to choose that right direction for GST compliance & return filing system.

Preference Table of QRMP Scheme To/From Monthly System

Sr.	Point of Comparison	QRMPs	Monthly System	Preferable
GSTR- 1
1	Total number of GSTR 1 to be filed annually	Four	Twelve	QRMPs
2	To file IFF/GSTR-1	Monthly Optional IFF & Quarterly Mandatory GSTR-1	Mandatory Monthly GSTR-1	QRMPs
3	Delayed filing of Monthly IFF/ GSTR 1	Can’t file IFF after due date	GSTR 1 can be filed even after due date	Monthly System
4	Preparation of HSN Wise Summary, Exempt & NIL rated supplies details, State Wise & Rate Wise unregistered B2C details & documents list of Invoice Numbers & Credit Notes Numbers	Quarterly	Monthly	QRMPs
5	Late Fees to be born for delayed filing of GST Return	Low chances since less number of returns	Higher chances	QRMPs
6	Due Date for Monthly IFF/GSTR-1	13^th	11^th	QRMPs
7	Preferable Mode of Filing for High number of B2C Customers	Combined reporting in GSTR-1 at quarter end	–	QRMPs
8	Preferable Mode of Filing for High number of B2B Customers / Export Sales	Since can’t file IFF after due date	Prefer to opt Monthly GSTR-1, rather than Monthly IFF	Monthly System
9	Reconciliation of Books with GST Returns filed	Little bit complicated	Easy to reconcile because of availability on monthly returns filed figures	Monthly System
GSTR-3B
10	Total number of GSTR 3B to be filed annually	Four	Twelve	QRMPs
11	Reconciliation of GSTR 2B/2A for claiming ITC	In case “Fixed Sum Method” for tax payment is being opted, then GSTR 2A & GSTR 2B to be reconciled on quarterly basis for availing ITC at the time of Quarterly GSTR 3B filing. However in case of “Self Assessment Method” is being opted, then monthly reconciliation to be done for availing ITC & discharging Tax Liability	Monthly Reconciliation	QRMPs
12	Late Fees to be born for delayed filing of GST Return	Low chances since less number of returns	Higher chances	QRMPs
13	Processing of IGST Refund for Export of Goods on the payment of Tax basis.	Delayed i.e. Quarterly	Faster i.e. Monthly	Monthly GSTR 3B
14	Preparation of details of Exempt & NIL rated supplies, State Wise unregistered B2C supplies & Inward Exempt & Composition Dealer details	Quarterly	Monthly	QRMPs
Tax Payment
15	Due date for Monthly Payment of Tax	25^thfor 1^st Two Months of Quarter	22^nd/24^th(as applicable for Particular State)	QRMPs
16	Interest Levy for Short Deposit of Tax in First Two months of every quarter	Not applicable in case payment by “Fixed Sum Method” i.e. 35% Challan Basis, as actual amount of Tax Payable may be higher, than being paid only 35% basis.	Applicable	QRMPs
17	Management of Working Capital	Monthly option to choose between Self Assessment Method & Fixed Sum Method, depending upon availability of Fund	Mandatory Self Assessed Payment on monthly basis	QRMPs
18	Computation of Tax Liability & reconciliation with Books of accounts	Little complicated and more prone to errors, since you have to note down the method adopted for Tax payment and compute self assessed liability	Easy & well adopted as auto computed by GSTR 3B on monthly basis	Monthly GSTR 3B
19	Input Credit Ledger Balance (ITC b/f and c/f)	More reliance on quality of books/records maintained	Auto updation in electronic credit ledger on month to month basis	Monthly GSTR 3B
20	Refund to be applied for Excess Cash Payment in case of “Fixed Sum Method” of Tax Payment	Fixed Sum method of Tax Payment (i.e.35%) may result in Higher payment of tax than actual tax liability and that can be refunded after quarterly returns filing.	No such case	Monthly GSTR 3B
21	Tax payer with Higher ITC credit Balances	Prefer to opt QRMPs, since no monthly outflow & tax compliances	Monthly compliances /returns filing	QRMPs
Other Aspects
22	Compliance cost for payment to accountant & tax professional	Lower	Higher	QRMPs
23	GST Returns filing & compliance burden for Tax Payer	Less	More	QRMPs
24	GST Returns filing & compliance burden for Tax Professional	Higher Workload as many Quarterly Returns filer till 31/12/2020, tend to opt IFF to be filed on monthly basis now.	Higher since Quarterly Return Filer to opt Monthly GSTR-1	Monthly GSTR-1

Conclusion

Both the schemes are quite comprehensive, with their own pros and cons. Hence one can opt in/out depending upon situation of particular firm/client and quality of resources available. As the option to Opt in/out can be changed every quarter, you can amend the earlier choice based on current facts and circumstances.

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