CBIC Offers Major GST Reliefs to MSMEs: QRMP Scheme and Tax Exemptions Emerge as Game-Changers

QRMP Scheme: Reduced Compliance, More Flexibility

The Quarterly Return Filing and Monthly Payment (QRMP) Scheme continues to gain traction among small taxpayers.

Under this initiative Taxpayers are required to file returns only once every quarter, significantly reducing compliance workload. Businesses are offered flexible tax payment options, such as a Fixed Sum method or Self-Assessment, making cash flow management more predictable. The scheme is positioned as a vital compliance tool that supports growth while simplifying GST procedures.

Tax Relief and Exemptions: Preferential Treatment Post-GST

In a further boost to ease of doing business:

• No GST registration is required for service providers with turnover up to ₹20 lakh (₹10 lakh for NE and hill states).

• Goods suppliers enjoy an enhanced threshold of ₹40 lakh for intra-state supply, with a reduced limit of ₹20 lakh in select states.

• Additionally, advance received for the supply of goods is now tax-exempt, easing pressure on working capital and upfront taxation.

Policy Impact: Benefiting the Majority

According to official data:

• More than 78% of GST-registered taxpayers may benefit from these policy changes.

• Late fee rationalization has been introduced, placing an upper cap on penalties. This is especially significant for smaller taxpayers who often struggle with compliance costs.

Government’s Continued Support

These policy measures underscore the government’s commitment to nurturing the MSME sector—considered the backbone of the Indian economy. CBIC's recent outreach and digital campaigns reflect a focused effort to create awareness among traders, shopkeepers, and small enterprises.

With the GST system evolving in favor of small businesses, the Ministry of Finance reiterates its role as a “compliance partner, every step of the way.”