QRMP Scheme Under GST: Quarterly Return Monthly Payment for MSMEs Below ₹5 Cr

QRMP Scheme Under GST: Quarterly Return Monthly Payment for MSMEs Below ₹5 Cr

If you run a small business in India, you know GST compliance never really stops. Every month brings invoices to reconcile, returns to file and challans to pay. For a Micro, Small or Medium Enterprise (MSME) with a lean accounts team, or none at all, that routine is draining.

The QRMP scheme under GST (Quarterly Return Monthly Payment) was designed to ease this load. It lets eligible small taxpayers file their returns once a quarter instead of every month, while still paying tax monthly so that government revenue flow is not disturbed.

This guide covers the QRMP scheme end to end:

• eligibility
• how it works
• the two payment methods
• the Invoice Furnishing Facility (IFF)
• due dates
• opt-in and opt-out steps
• advantages and disadvantages
• late fees and interest
• common mistakes

By the end you should know whether QRMP is right for your business and how to run it without penalties.

Quick note: GST rules, due dates and portal procedures change through notifications. Always confirm the latest position on the official GST portal (gst.gov.in) or with your tax professional before acting.

What Is the QRMP Scheme Under GST?

QRMP stands for Quarterly Return Filing and Monthly Payment of Tax. The GST Council introduced it for small taxpayers, and it has been in effect since 1 January 2021.

Under the normal GST system, a regular taxpayer files:

• GSTR-1 (outward supplies) every month, and
• GSTR-3B (summary return and tax payment) every month.

That adds up to 24 returns a year.

Under QRMP, the same taxpayer files:

• GSTR-1 once every quarter,
• GSTR-3B once every quarter, and
• pays tax monthly for the first two months of each quarter through Form GST PMT-06.

That is 8 returns a year (4 GSTR-1 and 4 GSTR-3B), plus two small challan payments per quarter.

The idea is simple. Filing becomes quarterly, but cash flow to the government stays monthly.

Why Was the QRMP Scheme Introduced?

Before QRMP, a small trader with a turnover of ₹40 lakh faced the same monthly return burden as a company with a turnover of ₹400 crore. The Council recognised that small taxpayers:

• often lack dedicated accounting staff,
• spend a disproportionate share of their time and money on compliance,
• contribute a relatively small share of total GST collections.

QRMP addresses this by cutting the number of filings while keeping the tax payment cycle monthly. It was part of a broader push to improve the ease of doing business for small enterprises.

Who Is Eligible for the QRMP Scheme? (Below ₹5 Cr)

You can opt for QRMP if you meet all of the following conditions:

1. You are a registered person required to file GSTR-1 and GSTR-3B.
2. Your aggregate turnover in the preceding financial year was up to ₹5 crore. For FY 2026-27, the test is turnover in FY 2025-26.
3. You have furnished all pending returns (GSTR-3B and GSTR-1) up to the relevant period before opting in.

Who Cannot Opt for QRMP?

QRMP does not apply to:

• taxpayers with aggregate turnover above ₹5 crore in the preceding financial year,
• Composition Scheme taxpayers, who follow a separate quarterly framework (CMP-08 and annual GSTR-4),
• Non-resident taxable persons, casual taxable persons, ISDs, OIDAR service providers and similar special categories, who file under their own return forms,
• taxpayers with pending returns that block the opt-in.

Understanding “Aggregate Turnover”

“Aggregate turnover” is PAN-based, not GSTIN-based. It includes:

• taxable supplies,
• exempt supplies,
• exports,
• inter-state supplies of all persons with the same PAN, computed on an all-India basis.

It excludes taxes (CGST, SGST, IGST, cess) and inward supplies on which reverse charge applies. If you hold registrations in several states under one PAN, add them all together before checking the ₹5 crore limit.

Is QRMP Optional or Mandatory?

Optional. You choose to enter and you can leave. Eligible taxpayers who do nothing continue as monthly filers.

How Does QRMP Work? A Quarter in Four Steps

Take a quarter such as July–September. A QRMP taxpayer does the following:

Three things stand out:

• No monthly GSTR-1 or GSTR-3B for months 1 and 2.
• Monthly payment through PMT-06 for months 1 and 2.
• Quarterly GSTR-1 and GSTR-3B after the quarter closes.

The Two Methods of Monthly Tax Payment Under QRMP

QRMP taxpayers can choose between two methods for their monthly PMT-06 payment. You can switch methods from one quarter to the next.

Method 1: Fixed Sum Method (35% Method)

This is the easier option. You pay a pre-calculated fixed amount for each of the first two months. No invoice matching or ITC calculation is needed for those months.

How the amount is calculated:

• If you were filing quarterly in the preceding quarter, the monthly amount is 35% of the tax paid in cash in that quarter’s GSTR-3B.
• If you were a monthly filer who has just moved to QRMP, the amount is generally 100% of the tax paid in cash in the last month’s GSTR-3B of the preceding quarter.

The system generates a ready-made challan. You review it and pay by the 25th.

Who can use it?

Anyone who has filed at least one GSTR-3B for the preceding period and paid some tax in cash. A new registrant with no filing history has nothing to base the fixed sum on, and will typically have to use the self-assessment method.

Example:

• Tax paid in cash in the April–June GSTR-3B: ₹2,00,000
• Fixed sum for July: 35% × ₹2,00,000 = ₹70,000
• Fixed sum for August: ₹70,000
• Total paid through PMT-06 in the quarter: ₹1,40,000

When you file the July–September GSTR-3B, you report the full quarterly liability, claim the eligible ITC, adjust the ₹1,40,000 already deposited, and pay only the balance.

Pros:

• Zero calculation effort
• No need to reconcile ITC mid-quarter
• Very low risk of short payment and interest

Cons:

• If your liability falls sharply, you may pay more than needed and park cash with the government until the quarterly return is filed
• If your sales grow sharply, the balance due in the quarterly return will be larger

Method 2: Self-Assessment Method (SAM)

Here you compute your actual tax liability for each month, net of eligible ITC, and pay that amount through PMT-06.

You work out:

• Outward tax liability for the month (including your invoice and note data), and
• Eligible ITC for the month, based on your GSTR-2B statement.

Pay the net amount (output tax minus ITC) in cash by the 25th.

Example:

• July output GST: ₹1,20,000. ITC available as per GSTR-2B: ₹80,000. PMT-06 payment: ₹40,000.
• August output GST: ₹90,000. ITC available: ₹60,000. PMT-06 payment: ₹30,000.
• September is settled in the quarterly GSTR-3B along with the reconciliation of the whole quarter.

Pros:

• Pay only what you actually owe each month
• Better cash-flow control, especially for businesses with seasonal or uneven sales

Cons:

• Needs accurate monthly bookkeeping
• Errors in output tax or ITC computation lead to short payment and interest

Which Method Should an MSME Choose?

If you are unsure, discuss it with your CA before the quarter starts. The choice is made on the portal when generating the challan each month.

Invoice Furnishing Facility (IFF): Keeping Your Buyers Happy

One real concern with quarterly filing is Input Tax Credit (ITC) for your customers.

Your B2B buyer claims ITC only when your invoices appear in their GSTR-2B. If you file GSTR-1 only once a quarter, an invoice you raise in July might not reach your buyer’s GSTR-2B until October. That delays their ITC by up to three months, and many business customers dislike that.

The Invoice Furnishing Facility (IFF) fixes this.

What Is IFF?

IFF is an optional facility that lets a QRMP taxpayer upload B2B invoices (and related credit and debit notes) in the first two months of a quarter, so the buyer sees them in their GSTR-2B the following month.

Key IFF Rules

• Optional, not mandatory
• Available only for month 1 and month 2 of the quarter, not month 3
• Due by the 13th of the following month
• Used for B2B supplies (and credit/debit notes to registered persons)
• Subject to a monthly value limit of ₹50 lakh in total invoices uploaded
• Invoices uploaded through IFF are not uploaded again in the quarterly GSTR-1. The quarterly GSTR-1 covers the remaining invoices
• Once uploaded and filed, IFF details are locked, so verify before submitting

When Should You Use IFF?

• Your customers are registered businesses who need timely ITC
• You supply to large corporates that insist on monthly invoice reporting
• You have substantial B2B sales each month

When Can You Skip IFF?

• Most of your sales are B2C (consumers do not claim ITC)
• Your B2B buyers do not mind ITC arriving a quarter later

Remember that skipping IFF makes you look less compliant to some corporate customers, who may ask for monthly reporting or hold back payments.

QRMP Due Dates: The Complete Calendar

Dates are standard unless an extension is notified.

Quarterly Return Due Dates

State-Wise GSTR-3B Due Dates

Category A (due on the 22nd): Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu, Dadra & Nagar Haveli, Puducherry, Andaman & Nicobar Islands and Lakshadweep.

Category B (due on the 24th): all other states and Union Territories, including Delhi, Uttar Pradesh, Rajasthan, Punjab, Haryana, West Bengal, Bihar, Odisha, Jharkhand and the northeastern states.

The state is determined by your principal place of business as per your GST registration.

Sample Calendar: October–December 2026 Quarter

Notice there is no PMT-06 for the third month. December’s tax is paid with the quarterly GSTR-3B.

How to Opt for the QRMP Scheme (Step by Step)

You can opt in on the GST portal. A typical path:

1. Log in to www.gst.gov.in with your credentials.
2. Go to Services → Returns → Opt-in/Opt-out of Quarterly Return.
3. Select the financial year and the quarter from which you want QRMP to apply.
4. Choose “Quarterly” as your filing frequency.
5. Click Submit and confirm using the OTP/DSC/EVC authentication as prompted.
6. Check the confirmation message on screen and the updated status under your return dashboard.

Important Opt-In Points

• The option is exercised on the portal within the prescribed opt-in window, which generally closes before the quarter begins or shortly after its start. Check the current window on the portal before you plan.
• All pending returns must be filed first.
• The choice applies on a PAN basis. If you hold multiple registrations under the same PAN, they should be aligned.
• New registrants can choose QRMP while applying for registration or after registration, subject to eligibility.
• Once selected, QRMP continues automatically in future quarters until you opt out or become ineligible.

How to Opt Out of QRMP

Opting out is as easy as opting in:

1. Log in to the GST portal.
2. Go to Services → Returns → Opt-in/Opt-out of Quarterly Return.
3. Choose “Monthly” for the next quarter.
4. Submit and authenticate.

Automatic Exit From QRMP

You are moved back to monthly filing if:

• your aggregate turnover crosses ₹5 crore during a financial year (the shift applies from the next quarter), or
• you fail to file the required returns, or fail to meet other conditions.

Even if you are still within the limit, a persistent compliance default can cause the system to block your options. Keep your returns current.

How to File Returns Under QRMP

Step 1: Pay Monthly Tax Using PMT-06

1. Log in to the GST portal.
2. Go to Services → Payments → Create Challan.
3. Choose “Monthly payment for quarterly return” (or the relevant option).
4. Select the method (Fixed Sum or Self-Assessment).
5. Verify the amounts. Under SAM, enter the figures for CGST, SGST, IGST and cess yourself.
6. Pay through net banking, UPI, NEFT/RTGS or another available mode, and download the receipt.

Pay before the 25th. Delayed payment attracts interest.

Step 2: Upload IFF (Optional)

• Open the IFF tile for the month.
• Enter or upload B2B invoices and notes.
• Save, review and file by the 13th.

Step 3: File Quarterly GSTR-1

• Report all outward supplies for the quarter, excluding those already reported through IFF.
• Check HSN summary, document issued summary and amendments.
• File by the 13th.

Step 4: File Quarterly GSTR-3B

• Report the quarter’s total outward liability, ITC (from GSTR-2B), RCM and exempt supplies.
• Adjust the PMT-06 payments already made.
• Pay the balance and file by the 22nd or 24th.

Advantages of the QRMP Scheme for MSMEs

1. Fewer returns. Eight returns instead of 24 save time and professional fees.
2. Lower compliance cost. Many CAs and accountants charge per return. Fewer returns mean lower fees.
3. Less deadline stress. Compliance reviews happen four times a year instead of twelve.
4. Lower risk of late fees. Fewer deadlines reduce the chance of a missed filing.
5. Monthly payment keeps liability small. You never face a huge lump sum at once.
6. Flexibility. You can opt in or out, and pick the payment method that suits you.
7. Optional B2B reporting. IFF lets you keep customers happy only when needed.

Disadvantages and Limitations of QRMP

1. Monthly payment still required. The cash outflow is not deferred; only the paperwork is.
2. ITC reconciliation happens only quarterly. Mistakes can pile up undetected for three months.
3. Buyer ITC delays. Without IFF, customers wait for ITC.
4. Errors compound. In the Self-Assessment Method, wrong output or ITC figures cause interest, and a single mistake can span three months of data.
5. Fixed sum can distort cash flow. You might overpay in a lean month or underpay in a boom.
6. Slower detection of mismatches. Notices or portal differences may show up late.
7. Not suitable for all businesses. High-volume B2B sellers with strict customers often do better filing monthly.

Late Fees, Interest and Penalties Under QRMP

Interest on Late PMT-06 Payment

If you do not pay PMT-06 by the 25th, interest at 18% per annum applies from the day after the due date until payment. Interest is computed on the unpaid amount, so even small delays add up.

Late Fee for Delayed Returns

Maximum caps depend on turnover (subject to the latest notifications):

• Nil return: capped at ₹500 per return
• Turnover up to ₹1.5 crore: capped at ₹2,000 per return
• Turnover ₹1.5 crore to ₹5 crore: capped at ₹5,000 per return

Other Consequences

• Blocking. A pending GSTR-3B can block your GSTR-1 filing, and later periods get blocked behind earlier defaults.
• Notices. The department can issue notices for short payment, mismatches and non-filing.
• ITC trouble for customers. Delayed reporting leaves your buyers unable to claim ITC.
• Registration risk. Repeated non-filing can lead to suspension or cancellation of GST registration.

Always check the latest notifications. The government occasionally announces amnesty or reduced late fees for specified periods.

QRMP vs Monthly Filing: Which Is Better?

Thumb rule: If your customers are mostly consumers or small businesses and your accounts team is thin, QRMP usually pays off. If your buyers are large corporates who demand monthly reporting, monthly filing or regular IFF use makes more sense.

Practical Tips: Using QRMP Without Penalties

1. Keep monthly books even though returns are quarterly. Do not save all accounting for quarter-end.
2. Check GSTR-2B every month. It is the base for ITC under SAM.
3. Set calendar reminders for the 13th, 22nd/24th and 25th.
4. Use IFF where it matters for your key B2B clients.
5. Reconcile books with GSTR-1 and GSTR-3B each quarter before filing.
6. Pay PMT-06 on time, even if the amount is small.
7. Review your method each quarter. Switch between Fixed Sum and SAM as your business changes.
8. Watch the ₹5 crore limit. Track turnover so you are not surprised by an auto-exit.
9. Keep proof of every payment. Download PMT-06 challans and receipts.
10. Do not skip months because “nothing is due.” Even in months with a nil position, document it for your records.

Common Mistakes to Avoid

• Missing PMT-06 for month 1 or month 2, and then paying interest later.
• Assuming no payment is needed because the return is quarterly.
• Ignoring IFF and receiving complaints from corporate customers about delayed ITC.
• Claiming ITC not shown in GSTR-2B under SAM, which risks interest and notices.
• Mixing up IFF and GSTR-1 invoices, leading to duplicate or missing reporting.
• Forgetting the state-wise GSTR-3B date (22nd vs 24th).
• Ignoring turnover growth, so the business stays in QRMP after crossing the limit.
• Not reconciling in the third month, which lets earlier errors flow into the quarterly return.
• Filing GSTR-3B before GSTR-1, which can create mismatches.
• Neglecting notices. Under QRMP the same legal obligations apply as for monthly filers.

QRMP and Related GST Compliance Topics MSMEs Should Know

QRMP changes only how often you file GSTR-1 and GSTR-3B. Other obligations remain:

• Annual return (GSTR-9) and reconciliation statement (GSTR-9C) where applicable. See our guide on GST audit limit for MSMEs and GSTR-9C.
• ITC time limits. Read how the Section 16(4) ITC time limit judgement affects small businesses.
• E-invoicing and e-way bills, where thresholds apply.
• Reverse charge payments, which must be tracked and reported correctly.
• HSN code reporting, in the format required for your turnover band.

If you are still setting up, you can get help with GST registration or GST annual return filing.

A Worked Example: Sharma Traders (FY 2026-27)

Business: Sharma Traders, a Pune-based wholesale and retail trader. Aggregate turnover in FY 2025-26 was ₹3.2 crore, so it is eligible for QRMP.

Setup: It opts for QRMP from the July–September 2026 quarter and chooses the Self-Assessment Method.

July:

• Output GST: ₹1,10,000
• Eligible ITC per GSTR-2B: ₹70,000
• Pays ₹40,000 via PMT-06 by 25 August
• Uploads B2B invoices through IFF by 13 August, because corporate customers want monthly ITC

August:

• Output GST: ₹95,000
• Eligible ITC: ₹65,000
• Pays ₹30,000 via PMT-06 by 25 September
• Uses IFF again by 13 September

September (no monthly return):

• Output GST: ₹1,05,000
• Eligible ITC: ₹60,000

Quarterly filing in October:

• Files GSTR-1 by 13 October for the remaining invoices
• Total quarterly output GST: ₹3,10,000
• Total ITC claimed: ₹1,95,000
• Net liability: ₹1,15,000
• Already paid via PMT-06: ₹70,000
• Balance paid with GSTR-3B by 22 October (Maharashtra, Category A): ₹45,000

Result: two returns for the quarter instead of six, no penalties, and customers receive timely ITC.

Who Should Choose QRMP? A Quick Checklist

QRMP is likely a good fit if:

• ✅ Turnover is below ₹5 crore
• ✅ Most sales are to consumers (B2C)
• ✅ Sales and ITC are relatively stable
• ✅ You have limited accounting staff
• ✅ You are comfortable tracking one challan a month

Consider staying monthly if:

• ❌ You are close to or growing toward ₹5 crore
• ❌ You have large B2B customers who need immediate ITC
• ❌ You have complex ITC, reverse charge or frequent notes and amendments
• ❌ You prefer monthly reconciliation to catch errors early

Frequently Asked Questions (FAQs)

1. What is the QRMP scheme under GST?
It lets eligible taxpayers file GSTR-1 and GSTR-3B quarterly while paying tax monthly through Form PMT-06 for the first two months of each quarter.

2. What is the turnover limit for QRMP?
Aggregate turnover up to ₹5 crore in the preceding financial year.

3. Is QRMP mandatory?
No. It is optional and you can opt in or out as per the rules.

4. Do I need to pay GST monthly under QRMP?
Yes. Tax for months 1 and 2 is paid through PMT-06 by the 25th of the following month. The third month’s tax is paid with the quarterly GSTR-3B.

5. What are the two methods of payment under QRMP?
The Fixed Sum Method (35% of the cash tax paid in the preceding quarter’s GSTR-3B) and the Self-Assessment Method (actual tax net of ITC).

6. What is IFF?
The Invoice Furnishing Facility lets you upload B2B invoices in months 1 and 2 of a quarter so your buyers can claim ITC earlier. It is optional and capped at ₹50 lakh of invoice value per month.

7. What are the due dates under QRMP?
GSTR-1 on the 13th, GSTR-3B on the 22nd or 24th (state-wise) of the month after the quarter, IFF on the 13th and PMT-06 on the 25th of the following month.

8. What if I miss the PMT-06 date?
Interest at 18% per annum applies on the unpaid amount from the due date until paid.

9. Can I opt out of QRMP?
Yes, through the portal’s opt-in/opt-out facility, effective from the next quarter. You are also moved to monthly filing if you exceed ₹5 crore.

10. Can a new GST registrant choose QRMP?
Yes, subject to eligibility. Without return history, a new registrant generally uses the Self-Assessment Method.

11. Does QRMP reduce my tax liability?
No. It changes only the frequency of filing, not the amount of tax.

12. Is QRMP applicable to composition taxpayers?
No. Composition taxpayers have their own framework with quarterly CMP-08 and annual GSTR-4.

13. Do I need to file GSTR-3B for the first two months?
No. Only PMT-06 payment is required, and the full return is filed after the quarter.

14. What happens if my turnover crosses ₹5 crore mid-year?
You are required to move to monthly filing from the next quarter.

Conclusion

The QRMP scheme gives small businesses breathing room. It trades 24 returns for eight and still keeps the government’s monthly cash flow intact. For MSMEs with turnover below ₹5 crore, mainly serving consumers or small business customers, it can cut compliance effort, professional fees and the risk of late fees.

But it is not automatic savings. You still need to pay on time every month, reconcile ITC with care, use IFF where customers need it and keep an eye on the turnover limit. Choosing the wrong payment method or ignoring PMT-06 dates can cost more than you save.

If you are unsure whether QRMP suits your business, a short consultation can save you months of confusion.

Need Help With QRMP or GST Compliance?

Clever Coins helps MSMEs and startups with GST registration, QRMP set-up, monthly PMT-06 payments, return filing and notice handling.

📞 +91 77389 59862 | ✉️ client@clevercoins.org | 🌐 clevercoins.org