QRMP Scheme Under GST: Quarterly Returns, Monthly Payments Explained

QRMP scheme GST guide: who qualifies (up to Rs. 5 crore turnover), monthly PMT-06 payment, IFF for B2B invoices, and quarterly GSTR-1 and GSTR-3B.

What Is the QRMP Scheme

The Quarterly Return Monthly Payment (QRMP) scheme was introduced from 1 January 2021 to ease the compliance burden on small taxpayers. Eligible taxpayers file GSTR-1 and GSTR-3B quarterly instead of monthly while paying tax monthly through challan in form PMT-06. The scheme covers roughly 90 percent of GST taxpayers by count, since most fall below the Rs. 5 crore turnover threshold. It is opt-in, and the choice must be made between the 1st and the last day of the month preceding the quarter.

Eligibility and Opting In

Any registered person with aggregate turnover up to Rs. 5 crore in the preceding financial year is eligible to opt for QRMP. The option is exercised separately for each GSTIN, so a business can opt in for one state and stay monthly for another. Once opted in, the option continues for future quarters unless withdrawn or unless turnover crosses Rs. 5 crore. The opt-in window on the GST portal is in the first month of the previous quarter (for example, October for the Jan-Mar quarter).

Monthly Payment via PMT-06

Even though returns are quarterly, tax must be paid monthly by the 25th of the next month using challan PMT-06. There are two methods: fixed sum method (35 percent of preceding quarter cash payment for ongoing QRMP filers, 100 percent for the first quarter) or self-assessment method (actual liability). The fixed sum method is the default and most popular for businesses with steady revenue. Excess payment in any month is carried forward and adjusted in the final quarterly GSTR-3B.

Invoice Furnishing Facility (IFF) for B2B

IFF allows QRMP taxpayers to upload B2B invoices for the first two months of the quarter so that recipients can claim ITC on time in their GSTR-2B. IFF is optional, must be filed by the 13th of the next month, and is capped at Rs. 50 lakh per month. Most B2B-heavy small businesses use IFF religiously because skipping it means customers wait three months for ITC, which they will not tolerate. B2C invoices are reported only in the quarterly GSTR-1 since recipients do not claim ITC anyway.

Running QRMP Smoothly With BillBabu

BillBabu detects QRMP eligibility based on rolling turnover, pre-fills PMT-06 with both fixed-sum and self-assessment options each month, and auto-generates IFF uploads for B2B invoices by the 13th. Quarterly GSTR-1 and GSTR-3B are produced with all months consolidated, accumulated cash payments applied, and any excess carry-forward computed. For businesses straddling the Rs. 5 crore line, the platform also flags the right month to switch from QRMP to monthly compliance.

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