Businesses with up to Rs 5 crore turnover would need to file only eight returns (four GSTR-3B and four GSTR-1 returns) in a year from January onward instead of twelve at present. The Quarterly filing of Return with Monthly Payment (QRMP) Scheme would impact almost 94 lakh taxpayers, about 92 percent of the total tax base of the goods and services tax (GST). The scheme also brings in the concept of providing input tax credit (ITC) only on the reported invoices, thereby putting a significant curb on the menace of fake invoice frauds.
The QRMP scheme has optional feature of invoice filing facility (IFF) to mitigate business-related hardships for the small and medium taxpayers. Under the facility of IFF, the small taxpayers who opt to be quarterly return filers under the QRMP scheme would be able to upload and file such invoices even in the first and second month of the quarter for which there is a demand from the recipients.
Further, this would engage buyers who earlier used to avoid purchase from the small taxpayers in the want of uploading of invoices in the system on monthly basis. The taxpayers would need not upload and file all the invoices for the month and could upload and file only those invoices that are required to be filed in IFF as per demand of the recipients. The remaining invoices of the first and second months can be uploaded in the quarterly GSTR-1 return.