QRMP Scheme under GST – Importance and Eligibility

QRMP Scheme under GST – Importance and Eligibility. The Quarterly Return Filing and Monthly Payment of Taxes (QRMP) Scheme under GST was launched by the Central Board of Indirect Taxes and Customs (CBIC) to support small taxpayers in India. This scheme allows eligible businesses to file their GSTR-3B returns quarterly while continuing to pay taxes on a monthly basis. The QRMP Scheme aims to reduce the compliance burden on taxpayers with turnover up to Rs.5 crore while maintaining regular tax payments. This initiative is part of the Government's effort to ease GST compliance and promote digital tax practices for Micro, Small and Medium Enterprises (MSMEs).
Eligibility for the QRMP Scheme under GST
The QRMP Scheme is available to all registered persons who are required to file GSTR-3B and whose aggregate turnover in the preceding financial year is up to Rs.5 crore. If the turnover exceeds Rs.5 crore during any quarter of the current financial year, the taxpayer becomes ineligible for the QRMP Scheme from the next quarter onwards. The eligibility is calculated automatically by the GST portal based on the information provided in the previous year’s GST returns. The scheme is GSTIN-wise, which means if a business has multiple registrations under a single PAN, the option must be selected individually for each GSTIN.
How to Opt for the QRMP Scheme?
To opt into the QRMP Scheme, taxpayers must log in to the GST portal and select the option between the 1st of the second month of the previous quarter and the last day of the first month of the quarter they wish to begin filing quarterly returns. For example, if you want to file quarterly returns for the April–June quarter, you must choose the option between 1st February and 30th April. Once selected, the option remains in effect for subsequent tax periods unless the taxpayer becomes ineligible or voluntarily switches to monthly filing.
However, taxpayers cannot opt for quarterly filing if they have not submitted the last return due before exercising the option. For example, if someone tries to opt for quarterly filing on 1st December 2020, they must have filed the October 2020 return.
Considered Monthly/Quarterly Filing of GSTR-3B
To simplify the transition, the government has also introduced a deemed filing system for certain categories of taxpayers based on their past filing behaviour:
1. Taxpayers with turnover up to Rs.1.5 crore and filing GSTR-1 quarterly are deemed to have opted for quarterly GSTR-3B.
2. Taxpayers with turnover up to Rs.1.5 crore but filing GSTR-1 monthly are deemed to have opted for monthly GSTR-3B.
3. Taxpayers with turnover above Rs.1.5 crore and up to Rs.5 crore are automatically assigned quarterly GSTR-3B filing.
These default options can be changed on the GST portal within the allowed window.
Invoice Furnishing Facility (IFF) for QRMP Taxpayers
QRMP taxpayers can use the Invoice Furnishing Facility (IFF) to upload B2B invoices in the first two months of a quarter. This is optional and helps in faster credit reflection for buyers. The following rules apply to using IFF:
• Only applicable for the first two months of a quarter.
• Invoices for the third month must be uploaded with the quarterly GSTR-1.
• The monthly invoice value limit for IFF is Rs.50 lakh.
• Uploaded invoices reflect in the recipient's GSTR-2A, 2B, 4A or 6A.
• The IFF came into effect from 1st January 2021.
Monthly Tax Payment under QRMP Scheme
Taxpayers opting for the QRMP Scheme need to deposit taxes for the first two months of each quarter using Form PMT-06 by the 25th of the following month. There are two methods available for calculating monthly tax:
Fixed Sum Method (FSM) – Also known as the 35% challan method, taxpayers pay:
• 35% of the tax paid in the previous quarter (if filed quarterly).
• 100% of the tax paid in the last month of the previous quarter (if filed monthly).
Self-Assessment Method (SAM) – Tax is calculated based on actual outward and inward supplies, along with input tax credit (ITC) for that month.
In both methods, no payment is required if there is enough balance in the electronic cash or credit ledger, or if the liability is nil.
Due Dates for Filing Quarterly GSTR-3B
Depending on the state of registration, the due dates for filing quarterly GSTR-3B returns are:
• 22nd of the following month for states like Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, etc.
• 24th of the following month for states like Delhi, Punjab, Rajasthan, West Bengal, and others.
These due dates help stagger the filing process and reduce portal load.
Input Tax Credit (ITC) under QRMP Scheme
There is no change in the process for claiming Input Tax Credit under the QRMP Scheme. Taxpayers using the Self-Assessment Method can refer to GSTR-2B to determine their available ITC for each month. However, since GSTR-2B is generated only after quarterly GSTR-1 is filed, buyers dealing with QRMP suppliers must wait until the end of the quarter for complete ITC reflection.
Interest and Late Fees under QRMP Scheme
Interest Rates:
• No interest is charged if payment via PMT-06 is made on or before the 25th.
• 18% interest applies for delays beyond the due date.
• If tax paid via PMT-06 is less than actual liability but is covered while filing GSTR-3B on time, no interest is charged.
Late Fees:
• GSTR-3B late fees are Rs.25 per day under CGST and SGST each (Rs.50 total) or Rs.10 per day (Rs.20 total) for nil returns.
• No late fees are applicable for PMT-06 delays in the first two months.
Common Challenges under QRMP Scheme
While the QRMP Scheme helps reduce the return filing burden, there are a few challenges taxpayers may face:
• Choosing between monthly and quarterly filing for each GSTIN can be time-consuming.
• Segregating B2B and non-B2B invoices for IFF can lead to additional compliance.
• Matching data between sales register, IFF, and GSTR-1 requires careful reconciliation.
• Deciding between Fixed Sum and Self-Assessment methods for tax payment each month can be confusing for small businesses.
For more information or assistance in implementing the QRMP Scheme for your business, feel free to contact Compliance Calendar Team today through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. Who is eligible to opt for the QRMP Scheme under GST?
Ans. Any registered person whose aggregate annual turnover is up to Rs.5 crore in the preceding financial year and who is required to file GSTR-3B can opt for the QRMP Scheme. If the turnover exceeds Rs.5 crore during any quarter in the current financial year, the taxpayer becomes ineligible for the scheme from the next quarter.
Q2. Can I opt for the QRMP Scheme for some GSTINs and not for others under the same PAN?
Ans. Yes, the QRMP Scheme is GSTIN-wise, meaning each GST registration under the same PAN can have different filing frequencies. You can opt for QRMP for some GSTINs and continue with monthly filing for others, depending on your business needs.
Q3. What is the due date for depositing tax using Form PMT-06 under the QRMP Scheme?
Ans. Tax under the QRMP Scheme must be deposited using Form PMT-06 by the 25th of the month following the first and second months of a quarter. For example, tax for April should be paid by May 25.
Q4. What is the difference between the Fixed Sum Method and Self-Assessment Method?
Ans. Under the Fixed Sum Method (FSM), a taxpayer pays a fixed amount—either 35% of the previous quarter’s cash tax or 100% of the last month’s tax (if previously on monthly filing). In the Self-Assessment Method (SAM), the taxpayer calculates actual tax based on current month’s outward supplies and ITC.
Q5. Is there any penalty or late fee if Form PMT-06 is not filed on time?
Ans. Yes, if the PMT-06 is not filed by the 25th, interest at 18% per annum is charged on the delayed amount. However, no late fee is applicable for the delay in PMT-06 filing. Late fees apply only if quarterly GSTR-3B is not filed within the due date.
Q6. Can I use the Invoice Furnishing Facility (IFF) in all three months of the quarter?
Ans. No, the IFF can only be used in the first two months of a quarter. Invoices for the third month must be uploaded with the regular quarterly GSTR-1 filing. The IFF helps B2B buyers claim ITC faster.
Q7. What happens if I don’t file GSTR-3B for previous periods before opting for QRMP?
Ans. If you have not filed your previous GSTR-3B return, you will not be allowed to opt for the QRMP Scheme. You must first furnish all pending returns to be eligible to switch your filing preference to quarterly under the scheme.

The Quarterly Return Filing and Monthly Payment of Taxes (QRMP) Scheme under GST was launched by the Central Board of Indirect Taxes and Customs (CBIC) to support small taxpayers in India. This scheme allows eligible businesses to file their GSTR-3B returns quarterly while continuing to pay taxes on a monthly basis. The QRMP Scheme aims to reduce the compliance burden on taxpayers with turnover up to Rs.5 crore while maintaining regular tax payments. This initiative is part of the Government's effort to ease GST compliance and promote digital tax practices for Micro, Small and Medium Enterprises (MSMEs).

Eligibility for the QRMP Scheme under GST

The QRMP Scheme is available to all registered persons who are required to file GSTR-3B and whose aggregate turnover in the preceding financial year is up to Rs.5 crore. If the turnover exceeds Rs.5 crore during any quarter of the current financial year, the taxpayer becomes ineligible for the QRMP Scheme from the next quarter onwards. The eligibility is calculated automatically by the GST portal based on the information provided in the previous year’s GST returns. The scheme is GSTIN-wise, which means if a business has multiple registrations under a single PAN, the option must be selected individually for each GSTIN.

How to Opt for the QRMP Scheme?

To opt into the QRMP Scheme, taxpayers must log in to the GST portal and select the option between the 1st of the second month of the previous quarter and the last day of the first month of the quarter they wish to begin filing quarterly returns. For example, if you want to file quarterly returns for the April–June quarter, you must choose the option between 1st February and 30th April. Once selected, the option remains in effect for subsequent tax periods unless the taxpayer becomes ineligible or voluntarily switches to monthly filing.

However, taxpayers cannot opt for quarterly filing if they have not submitted the last return due before exercising the option. For example, if someone tries to opt for quarterly filing on 1st December 2020, they must have filed the October 2020 return.

Considered Monthly/Quarterly Filing of GSTR-3B

To simplify the transition, the government has also introduced a deemed filing system for certain categories of taxpayers based on their past filing behaviour:

1. Taxpayers with turnover up to Rs.1.5 crore and filing GSTR-1 quarterly are deemed to have opted for quarterly GSTR-3B.

2. Taxpayers with turnover up to Rs.1.5 crore but filing GSTR-1 monthly are deemed to have opted for monthly GSTR-3B.

3. Taxpayers with turnover above Rs.1.5 crore and up to Rs.5 crore are automatically assigned quarterly GSTR-3B filing.

These default options can be changed on the GST portal within the allowed window.

Invoice Furnishing Facility (IFF) for QRMP Taxpayers

QRMP taxpayers can use the Invoice Furnishing Facility (IFF) to upload B2B invoices in the first two months of a quarter. This is optional and helps in faster credit reflection for buyers. The following rules apply to using IFF:

• Only applicable for the first two months of a quarter.

• Invoices for the third month must be uploaded with the quarterly GSTR-1.

• The monthly invoice value limit for IFF is Rs.50 lakh.

• Uploaded invoices reflect in the recipient's GSTR-2A, 2B, 4A or 6A.

• The IFF came into effect from 1st January 2021.

Monthly Tax Payment under QRMP Scheme

Taxpayers opting for the QRMP Scheme need to deposit taxes for the first two months of each quarter using Form PMT-06 by the 25th of the following month. There are two methods available for calculating monthly tax:

Fixed Sum Method (FSM) – Also known as the 35% challan method, taxpayers pay:

• 35% of the tax paid in the previous quarter (if filed quarterly).

• 100% of the tax paid in the last month of the previous quarter (if filed monthly).

Self-Assessment Method (SAM) – Tax is calculated based on actual outward and inward supplies, along with input tax credit (ITC) for that month.

In both methods, no payment is required if there is enough balance in the electronic cash or credit ledger, or if the liability is nil.

Due Dates for Filing Quarterly GSTR-3B

Depending on the state of registration, the due dates for filing quarterly GSTR-3B returns are:

• 22nd of the following month for states like Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, etc.

• 24th of the following month for states like Delhi, Punjab, Rajasthan, West Bengal, and others.

These due dates help stagger the filing process and reduce portal load.

Input Tax Credit (ITC) under QRMP Scheme

There is no change in the process for claiming Input Tax Credit under the QRMP Scheme. Taxpayers using the Self-Assessment Method can refer to GSTR-2B to determine their available ITC for each month. However, since GSTR-2B is generated only after quarterly GSTR-1 is filed, buyers dealing with QRMP suppliers must wait until the end of the quarter for complete ITC reflection.

Interest and Late Fees under QRMP Scheme

Interest Rates:

• No interest is charged if payment via PMT-06 is made on or before the 25th.

• 18% interest applies for delays beyond the due date.

• If tax paid via PMT-06 is less than actual liability but is covered while filing GSTR-3B on time, no interest is charged.

Late Fees:

• GSTR-3B late fees are Rs.25 per day under CGST and SGST each (Rs.50 total) or Rs.10 per day (Rs.20 total) for nil returns.

• No late fees are applicable for PMT-06 delays in the first two months.

Common Challenges under QRMP Scheme

While the QRMP Scheme helps reduce the return filing burden, there are a few challenges taxpayers may face:

• Choosing between monthly and quarterly filing for each GSTIN can be time-consuming.

• Segregating B2B and non-B2B invoices for IFF can lead to additional compliance.

• Matching data between sales register, IFF, and GSTR-1 requires careful reconciliation.

• Deciding between Fixed Sum and Self-Assessment methods for tax payment each month can be confusing for small businesses.

For more information or assistance in implementing the QRMP Scheme for your business, feel free to contact Compliance Calendar Team today through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.

FAQs

Q1. Who is eligible to opt for the QRMP Scheme under GST?

Ans. Any registered person whose aggregate annual turnover is up to Rs.5 crore in the preceding financial year and who is required to file GSTR-3B can opt for the QRMP Scheme. If the turnover exceeds Rs.5 crore during any quarter in the current financial year, the taxpayer becomes ineligible for the scheme from the next quarter.

Q2. Can I opt for the QRMP Scheme for some GSTINs and not for others under the same PAN?

Ans. Yes, the QRMP Scheme is GSTIN-wise, meaning each GST registration under the same PAN can have different filing frequencies. You can opt for QRMP for some GSTINs and continue with monthly filing for others, depending on your business needs.

Q3. What is the due date for depositing tax using Form PMT-06 under the QRMP Scheme?

Ans. Tax under the QRMP Scheme must be deposited using Form PMT-06 by the 25th of the month following the first and second months of a quarter. For example, tax for April should be paid by May 25.

Q4. What is the difference between the Fixed Sum Method and Self-Assessment Method?

Ans. Under the Fixed Sum Method (FSM), a taxpayer pays a fixed amount—either 35% of the previous quarter’s cash tax or 100% of the last month’s tax (if previously on monthly filing). In the Self-Assessment Method (SAM), the taxpayer calculates actual tax based on current month’s outward supplies and ITC.

Q5. Is there any penalty or late fee if Form PMT-06 is not filed on time?

Ans. Yes, if the PMT-06 is not filed by the 25th, interest at 18% per annum is charged on the delayed amount. However, no late fee is applicable for the delay in PMT-06 filing. Late fees apply only if quarterly GSTR-3B is not filed within the due date.

Q6. Can I use the Invoice Furnishing Facility (IFF) in all three months of the quarter?

Ans. No, the IFF can only be used in the first two months of a quarter. Invoices for the third month must be uploaded with the regular quarterly GSTR-1 filing. The IFF helps B2B buyers claim ITC faster.

Q7. What happens if I don’t file GSTR-3B for previous periods before opting for QRMP?

Ans. If you have not filed your previous GSTR-3B return, you will not be allowed to opt for the QRMP Scheme. You must first furnish all pending returns to be eligible to switch your filing preference to quarterly under the scheme.