Quarterly Return with Monthly Payment (QRMP) Scheme Under GST

Who is Eligible for the QRMP Scheme?

• You are a regular GST taxpayer required to file GSTR-1 and GSTR-3B.
• Your PAN-based aggregate annual turnover is within the QRMP scheme limit of ₹5 crore.
• Your latest due GSTR-3B has been filed.
• There is no saved GSTR-1 data on the portal for the period for which you want to opt into QRMP.
• You are a new regular taxpayer and your expected aggregate turnover is up to ₹5 crore.

The GST portal also allows different GSTINs under the same PAN to make different choices. For example, one GSTIN may remain under QRMP while another GSTIN under the same PAN may continue monthly filing. 

Taxpayers who cannot use QRMP

The QRMP scheme is not meant for every GST registration. It is not available to:

• Composition taxpayers
• Input Service Distributors
• Non-resident taxable persons
• TDS deductors under Section 51
• TCS collectors under Section 52
• Taxpayers whose aggregate turnover exceeds ₹5 crore. In such cases, the taxpayer should exit QRMP in the next applicable quarter.

Benefits of the QRMP Scheme

• QRMP gives small businesses more breathing room by shifting the major return-filing work to a quarterly cycle. This is especially useful for businesses that handle GST compliance with a small internal team or an external accountant.
• The business still pays tax every month through PMT-06, so tax outflow does not pile up entirely at quarter-end. This keeps cash flow more disciplined while reducing the frequency of return filings.
• For B2B sellers, regular IFF use can reduce buyer follow-ups because important invoices become visible earlier in the buyer’s GST records.
• QRMP works well for businesses with predictable monthly sales, manageable invoice volume and turnover safely below ₹5 crore.

Practical Limitations of the QRMP Scheme

• QRMP does not completely remove monthly work. If the business has B2B buyers, IFF should be reviewed every month for Month 1 and Month 2. 
• Skipping IFF can create buyer-side follow-ups, especially where customers closely track vendor compliance before releasing payments.
• If the taxpayer chooses the Self-Assessment Method, the monthly tax must be calculated carefully. Underpayment can result in interest.
• If invoices are not properly maintained during the quarter, the final GSTR-1 and GSTR-3B filings can be rushed. This increases the risk of wrong invoice reporting, missed ITC review , or delayed filing.

You can opt in or opt out of QRMP through the GST portal by going to: Services > Returns > Opt-in for Quarterly Return. The GST portal provides a dedicated window to select or change the filing frequency. Once selected, the option continues for future periods unless the taxpayer changes it within the allowed window or becomes ineligible.  If the window is missed, the taxpayer cannot backdate the option for that quarter. The next opportunity will be the next quarter’s selection window.

QRMP vs Monthly GST Return Filing

QRMP is not automatically better than monthly filing. It helps reduce the frequency of return filings, but businesses with many B2B buyers may still prefer monthly filing because buyer ITC expectations are easier to manage. Check the table for a comparative analysis:

Monthly Tax Payment Under QRMP

Under QRMP, tax for the first two months of a quarter is paid through Form GST PMT-06 by the 25th of the following month. The GST portal recognizes two payment methods for the first two months of the quarter: Fixed Sum Method and Self-Assessment Method. The third month’s liability is adjusted while filing the quarterly GSTR-3B. For example, for the April to June quarter:

Fixed Sum Method Under QRMP

The Fixed Sum Method is the simpler option. Under this method, the GST portal generates a pre-filled challan in Form GST PMT-06 or the 35% challan. The amount is calculated in either of these ways:

Note: Only the tax paid through the Electronic Cash Ledger is considered for this calculation. ITC is not directly used for generating the fixed challan amount.

For example: Suppose a trader paid ₹80,000 in cash tax while filing GSTR-3B for the previous quarter. For the first month of the next quarter:

35% of ₹80,000 = ₹28,000

The portal may generate a PMT-06 challan for ₹28,000. The same amount may also apply for the second month, subject to the system-generated challan. At the end of the quarter, the actual tax liability is calculated in GSTR-3B. Any amount already paid through PMT-06 is adjusted against the quarterly liability.

When Fixed Sum Method works well

This method works well when business turnover is stable and monthly tax liability does not fluctuate sharply. It saves calculation time and reduces the risk of missing monthly payment estimates.

When Fixed Sum Method may not be ideal

If the business has seasonal sales, low sales in one month or high ITC in a particular month, the fixed amount may be higher than the actual monthly tax payable. In such cases, the Self-Assessment Method may be more practical.

Self-Assessment Method Under QRMP

Under the Self-Assessment Method, the taxpayer calculates the actual tax payable for the month after considering outward tax liability and eligible ITC as per law. The payment is then made through Form GST PMT-06 by the 25th of the following month.

Example of Self-Assessment Method

Suppose a business has the following figures for July:

The taxpayer pays ₹27,000 through PMT-06 by 25 August. For August, the same calculation is done again based on that month’s liability and eligible ITC. At the end of the quarter, both monthly deposits are adjusted while filing quarterly GSTR-3B.

When Self-Assessment Method works well

This method is better when sales fluctuate month to month, purchase ITC varies, or the business wants to avoid unnecessary cash blockage. It requires stronger bookkeeping because underpayment can lead to interest.

Invoice Furnishing Facility Under QRMP

IFF is available only for Month 1 and Month 2 of the quarter. Month 3 invoices are reported in the quarterly GSTR-1. The GST portal confirms that IFF  is meant for outward supplies to registered persons in the first two months of a quarter and is used to pass credit to recipients. 

Key points about IFF

For example: A retailer buys goods worth ₹5,00,000 plus 18% GST from a QRMP supplier in April. Then IFF will affect the buyer in the following manner:

This is why QRMP is most effective when businesses use IFF for important B2B invoices, especially where buyers are strict about ITC timelines.

Common IFF Filing Mistakes to Avoid

• Don’t upload month 3 invoices in IFF. These should be reported in the quarterly GSTR-1.
• Don’t assume IFF can be filed anytime, it must be used within the allowed time.
• Don’t treat the ₹50 lakh IFF limit as a per-invoice limit. It is a cumulative monthly limit for each of the first two months of the quarter.
• Don’t report the same invoice twice. Duplicate reporting can create mismatch and ITC confusion for the buyer.
• Saving invoices is not enough. If IFF is submitted, it must be filed. 
• Don’t ignore buyer GSTIN validation. Wrong GSTIN details can stop the invoice from reflecting correctly for the buyer.

GSTR-1A for corrections

Form GSTR-1A allows taxpayers to add or amend outward supply details for the same tax period after furnishing GSTR-1 and before filing GSTR-3B. For quarterly filers, GSTR-1A opens from the later of the quarterly GSTR-1 due date or the actual date of filing quarterly GSTR-1, and remains available until GSTR-3B is filed for that quarter. This is useful where an invoice was missed or wrongly reported in GSTR-1 and the correction needs to flow into GSTR-3B for the same period.

IMS and buyer-side ITC action

The Invoice Management System allows recipients to accept, reject or keep invoices pending. The GSTN advisory explains that invoices reported or saved through GSTR-1, IFF or GSTR-1A flow to the recipient’s IMS dashboard, and accepted or deemed accepted records become part of GSTR-2B. For QRMP recipients, the advisory also notes that GSTR-2B will be generated on a quarterly basis under IMS. This makes periodic ITC review even more important for QRMP taxpayers.

GSTR-3B enhancement (January 2026)

From the January 2026 tax period onward, GSTN has enhanced the interest computation and tax liability breakup table in GSTR-3B. The tax liability breakup table is auto-populated based on document dates for supplies reported in GSTR-1, GSTR-1A, or IFF for previous tax periods. Taxpayers should review these values before filing because the system values are meant to assist in accurate reporting.

GSTR-1 Filing Under QRMP

The GST portal states that GSTR-1 is a monthly or quarterly statement of outward supplies and must be filed even where there is no business activity for that tax period. Under QRMP, GSTR-1 is filed quarterly by the 13th of the month following the end of the quarter.

GSTR-1 should include:

• B2B invoices for Month 3
• B2B invoices of Month 1 and Month 2 were not furnished through IFF
• B2C supplies
• Debit notes and credit notes
• Export details, if applicable
• HSN or SAC summary , as applicable
• Amendments, if any

Nil GSTR-1 Filing Through SMS

QRMP taxpayers with nil outward supplies can file nil GSTR-1 through SMS. For quarterly filing, the return period should be the last month of the quarter.

Example format: NIL R1 GSTIN MMYYYY

For the April to June quarter, the return period should be June in MMYYYY format. The SMS facility uses 14409 and requires confirmation through a verification code.

GSTR-3B Filing Under QRMP

Under QRMP, GSTR-3B is filed quarterly. The due date is the 22nd or 24th of the month after the quarter, depending on the state or union territory of the taxpayer’s principal place of business. Amounts paid through PMT-06 in the first two months are adjusted while filing quarterly GSTR-3B . The taxpayer then pays the remaining balance, if any, before filing the return.

Interest Under QRMP

Fixed Sum Method

If the taxpayer pays the system-generated PMT-06 challan by the 25th of the following month and files quarterly GSTR-3B by the due date, interest is generally not charged for Month 1 and Month 2 even if the actual liability is higher. If the taxpayer does not pay the system-generated challan by the due date, interest may apply from the due date until payment.

Self-Assessment Method

If the taxpayer uses the Self-Assessment Method and pays less than the actual monthly tax liability, interest may apply on the shortfall from the due date until the date of payment.

Delayed quarterly GSTR-3B

If the quarterly GSTR-3B is filed late and tax remains unpaid, interest accrues under Section 50 of the CGST Act on the unpaid tax liability.

Late Fee Under QRMP

Late fee applies if GSTR-1 or GSTR-3B is filed after the due date. The fee is split between CGST and SGST and is subject to the applicable maximum cap. ITC cannot be used to pay a late fee . Interest at 18% per annum also applies on any net outstanding tax liability. Check the return types and the late fees applicable:

BUSY helps businesses manage GST invoicing , GST returns, GST reconciliation, GSTIN verification , e-way bill and e-invoice related workflows from one accounting system. For QRMP taxpayers, this can help in practical ways:

• Create GST-compliant invoices with correct tax details.
• Track B2B and B2C invoices separately for IFF and GSTR-1.
• Validate buyer GSTINs before return preparation.
• Reconcile purchase data with GSTR-2B or available GST portal data.
• Prepare GST return data from the books rather than manually compiling invoices at quarter-end.
• Reduce duplicate entry where the same transaction data is used for billing, accounting and GST reports.

Manage QRMP filing, GST invoices and reconciliation more easily with BUSY accounting software . Book a free demo today.

Conclusion

The QRMP scheme is useful for small GST taxpayers who want fewer return filings without stopping monthly tax payments. It works best when the business has stable turnover, clean books and a clear process for IFF, PMT-06 and quarterly return filing.

The most important point is that QRMP does not mean GST work can be ignored for three months. Monthly tax payment still matters, and IFF should be used carefully when B2B buyers need timely ITC. Businesses that maintain invoice discipline throughout the quarter can use QRMP to reduce compliance effort without creating avoidable GST mismatches.