Introduction
India’s GST system demands regular return filing and tax payments, often making compliance time-consuming for small and medium businesses. To relieve this burden, the government has introduced targeted compliance options based on a taxpayer’s turnover and operations.
The QRMP Scheme allows eligible taxpayers to file less frequently while still paying taxes on time. This system streamlines compliance and helps businesses manage cash flow efficiently.
Under this system, businesses with a turnover up to a specified limit can file their GST returns quarterly instead of monthly. However, the tax liability must still be paid every month through a simple challan system. This balanced approach helps businesses reduce their compliance workload without affecting tax discipline.
In this blog, we will explain the QRMP scheme under GST, including its eligibility, benefits, and key conditions, simply and clearly.
QRMP Scheme
The QRMP (Quarterly Return Monthly Payment) Scheme was introduced by the GST Council in its 42nd meeting held on 05.10.2020, with the main aim of reducing the compliance burden on small businesses and making GST filing easier.
Under this scheme, taxpayers with annual turnover up to ₹5 crore in the previous financial year can file their GST returns quarterly instead of monthly. This means they need to submit GSTR-1 and GSTR-3B only once every three months, which reduces a lot of repetitive work. Even though returns are filed quarterly, the tax payment still has to be made monthly.
For monthly tax payment, businesses are required to pay their due tax for the first two months of each quarter using Form GST PMT-06 by the 25th of the following month. They can choose between two methods. In the Fixed Sum Method, a pre-filled amount is generated based on previous tax payments, making it quicker and simpler. Under the Self-Assessment Method, the taxpayer calculates tax based on actual sales, purchases, and available input tax credits before paying.
Overall, the QRMP scheme is meant to simplify GST compliance, reduce filing frequency, and make tax payments more manageable for small taxpayers, while maintaining a regular, disciplined system.
Eligibility Criteria for QRMP Scheme
The QRMP Scheme is intended for small and medium taxpayers seeking easier GST compliance. However, not everyone can opt for it. There are a few simple conditions that must be met before choosing this scheme.
- The taxpayer’s annual turnover should not exceed ₹5 crore in the previous financial year. If the turnover goes above this limit in any quarter of the current year, the taxpayer will no longer be allowed to continue under the scheme from the next quarter.
- Certain types of taxpayers are not eligible for QRMP. This includes non-resident taxable persons, casual taxable persons, and Input Service Distributors (ISD). Businesses that supply goods through e-commerce platforms required to collect tax at source under Section 52 are also not allowed to opt for this scheme.
- Taxpayers who have chosen the Composition Scheme under Section 10 of the CGST Act cannot use the QRMP option.
- All past GST returns, such as GSTR-1 and GSTR-3B, must be filed before opting in. There should be no pending returns when selecting the scheme.
Once these conditions are satisfied, the taxpayer may opt for QRMP and file quarterly returns with monthly tax payments, simplifying and streamlining GST compliance. If you are new to GST or want to understand schemes like QRMP practically, enrolling in a GST course in kochi can be a good step.
How to Opt for the QRMP Scheme
A registered taxpayer who wants to file GSTR-3B every quarter needs to choose the QRMP option on the GST portal. This choice must be made within a specific time window—starting on the first day of the second month of the previous quarter and ending on the last day of the first month of the quarter for which the option is being selected.
For example, if a taxpayer wants to opt for the April–June quarter, they must select the QRMP option between 1st February and 30th April.
Once a taxpayer chooses this scheme, they are generally required to continue under it for future quarters unless their eligibility changes. However, there are a few important conditions.
If the taxpayer’s turnover exceeds ₹5 crore in any quarter, they will automatically have to switch back to monthly filing from the next quarter. Also, the taxpayer must ensure that all previous GST returns, especially the most recent GSTR-3B return, are filed before opting in.
At first, many taxpayers were automatically migrated to the scheme based on their turnover and filing status. They could opt out within a specific time window.
If a taxpayer misses the opt-in or opt-out window, the GST portal assigns the default system for that quarter.
Payment Methods Under the QRMP Scheme
Under the QRMP scheme, taxpayers are required to pay their GST liability for the first two months of each quarter. To make this easier, the government has provided two simple payment methods.
Fixed Sum Method
In this method, the GST portal automatically generates a pre-filled challan (Form GST PMT-06) based on previous tax payments. Generally, the amount equals 35% of the tax paid in cash in the earlier quarter if the return was filed quarterly.
For taxpayers newly registered or who have recently switched from the Composition Scheme, this 35% option may not be available. When the last return was filed monthly, the system may instead suggest the tax paid in the last month of the previous quarter as the basis for payment. This method is simple and reduces the need for manual calculation.
Self-Assessment Method
In this technique, taxpayers calculate their own tax liability for the month based on actual sales, purchases, and available Input Tax Credit (ITC). They then pay the exact amount through Form GST PMT-06.
The tax paid in the first two months is later adjusted when you file your quarterly GSTR-3B return, so you don’t end up paying extra or less.
This method gives you more control and helps you stay accurate, especially if your business income fluctuates month to month.
Overall, both methods allow taxpayers to decide what suits them best, either a simple, ready-made payment method or a more detailed, calculated one, while ensuring GST is paid on time every month under the QRMP scheme.
Invoice Furnishing Facility (IFF) under QRMP Scheme
The Invoice Furnishing Facility (IFF) is an optional tool for QRMP taxpayers. It lets businesses upload B2B invoices, credit notes, and debit notes for the first two months of each quarter.
This facility allows recipients to view uploaded invoices in GSTR-2A and GSTR-2B, enabling them to claim Input Tax Credit (ITC) sooner without waiting for the quarterly GSTR-1 filing. The IFF filing due date is the 13th of the following month, with a monthly upload limit of ₹50 lakh.
IFF is completely optional, and invoices uploaded through IFF need not be reported again in GSTR-1.
Late Fee Under QRMP Scheme
File GST returns on time, even under QRMP. If you miss the GSTR-1 or GSTR-3B deadline, you pay a late fee.
You pay a late fee for GSTR-1 daily—usually ₹50 per day (₹25 for CGST and ₹25 for SGST)—up to a set maximum for your taxpayer type.
For GSTR-3B, the late fee varies depending on the tax liability. When tax is due, the late fee is higher than when no tax is payable.
Pay late fees when you file returns. Frequent delays raise financial pressure on small businesses. File returns on time to avoid penalties and stress.
QRMP Scheme Opt-Out Rules and Restrictions
After the opt-in or opt-out deadline for the QRMP scheme passes for a quarter, no changes are allowed for that period. For example, if the January–March window is closed, you must remain under QRMP for that quarter.
However, you are not permanently stuck with it. You can choose to opt out in the next eligible quarter, provided you do so before the opt-out deadline for that upcoming quarter, as specified on the GST portal.
If you are already under QRMP and the deadline has passed, you simply need to follow the system for that quarter. This means:
- Uploading invoice details through IFF whenever required
- Paying GST every month for the first two months using PMT-06
- Reporting the remaining sales in the quarterly GSTR-1
- Filing GSTR-3B at the end of the quarter with any balance tax, if needed
Check your QRMP status on the portal before filing returns to avoid mistakes. Once active for a quarter, returns must follow QRMP rules.
Final Thoughts
The QRMP scheme is designed to make GST compliance easier and more practical for small and medium businesses. Allowing quarterly return filings alongside monthly tax payments reduces the pressure of monthly reporting while ensuring tax obligations are met on time.
This system is especially helpful for businesses that want to save time and reduce repetitive filing work. Also, it offers flexibility through different payment methods, helping taxpayers determine what works best for their business flow.
In short, the QRMP scheme brings a good balance between simplicity and compliance. When followed correctly, it can make GST filing smoother, more manageable, and less time-consuming for eligible taxpayers.
FAQs
What happens if a taxpayer misses the QRMP opt-in deadline?
If the opt-in deadline is missed, the taxpayer cannot choose the QRMP scheme for that quarter and will continue filing GST returns monthly for that period.
Does QRMP affect Input Tax Credit (ITC)?
No, QRMP does not impact ITC eligibility. Taxpayers can still claim ITC under GST rules, and buyers can view invoice details via IFF submissions.
Is the QRMP option mandatory for eligible taxpayers?
No, QRMP is completely optional. Eligible taxpayers can choose whether to file monthly or quarterly returns under this scheme.
Can a new taxpayer opt for the QRMP scheme immediately?
Yes, a newly registered taxpayer can opt for the QRMP scheme if they meet the eligibility criteria and choose it within the prescribed time window on the GST portal.
What happens if turnover exceeds ₹5 crore under QRMP?
If a taxpayer’s turnover crosses ₹5 crore in any quarter, they will no longer be eligible for the QRMP scheme and must switch to monthly GST filing from the next quarter.
