QRMP Scheme v/s Monthly GSTR 3B

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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 ComparisonQRMPsMonthly SystemPreferable
1Total number of GSTR 1 to be filed annuallyFourTwelveQRMPs
2To file IFF/GSTR-1Monthly Optional IFF & Quarterly Mandatory GSTR-1Mandatory Monthly GSTR-1QRMPs
3Delayed filing of Monthly IFF/


 Can’t file IFF after due dateGSTR 1 can be filed even after due dateMonthly System
4Preparation of HSN Wise Summary, Exempt & NIL rated supplies details, State Wise & Rate Wise unregistered B2C details & documents list of Invoice Numbers & Credit Notes NumbersQuarterlyMonthlyQRMPs
5Late Fees to be born for delayed filing of GST ReturnLow chances since less number of returnsHigher chancesQRMPs
6Due Date for Monthly IFF/GSTR-113th11thQRMPs
7Preferable Mode of Filing for High number of B2C CustomersCombined reporting in GSTR-1 at quarter endQRMPs
8Preferable Mode of Filing for High number of B2B Customers / Export SalesSince can’t file IFF after due datePrefer to opt Monthly GSTR-1, rather than Monthly IFFMonthly System
9Reconciliation of Books with GST Returns filedLittle bit complicatedEasy to reconcile because of availability on monthly returns filed figuresMonthly System
10Total number of GSTR 3B to be filed annuallyFourTwelveQRMPs
11Reconciliation of GSTR 2B/2A for claiming ITCIn 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 LiabilityMonthly ReconciliationQRMPs
12Late Fees to be born for delayed filing of GST ReturnLow chances since less number of returnsHigher chancesQRMPs
13Processing of IGST Refund for Export of Goods on the payment of Tax basis.Delayed i.e. QuarterlyFaster i.e. MonthlyMonthly GSTR 3B
14Preparation of details of Exempt & NIL rated supplies, State Wise unregistered B2C supplies & Inward Exempt & Composition Dealer detailsQuarterlyMonthlyQRMPs
Tax Payment
15Due date for Monthly Payment of Tax25th for 1st Two Months of Quarter22nd/24th  (as applicable for Particular State)QRMPs
16 Interest Levy for Short Deposit of Tax in First Two months of every quarterNot 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.ApplicableQRMPs
17 Management of Working CapitalMonthly option to choose between Self Assessment Method & Fixed Sum Method, depending upon availability of FundMandatory Self Assessed Payment on monthly basisQRMPs
18Computation of Tax Liability & reconciliation with Books of accountsLittle complicated and more prone to errors, since you have to note down the method adopted for Tax payment and compute self assessed liabilityEasy & well adopted as auto computed by GSTR 3B on monthly basisMonthly GSTR 3B
19Input Credit Ledger Balance (ITC b/f and c/f)More reliance on quality of books/records maintainedAuto updation in electronic credit ledger on month to month basisMonthly GSTR 3B
20Refund to be applied for Excess Cash Payment in case of “Fixed Sum Method” of Tax PaymentFixed 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 caseMonthly GSTR 3B
21Tax payer with Higher ITC credit BalancesPrefer to opt QRMPs, since no monthly outflow & tax compliancesMonthly compliances /returns filingQRMPs
Other Aspects
22Compliance cost for payment to accountant & tax professionalLowerHigherQRMPs
23 GST Returns filing & compliance burden for Tax PayerLessMoreQRMPs
24 GST Returns filing & compliance burden for Tax ProfessionalHigher 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-1Monthly GSTR-1

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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