QRMP Scheme GST: Quarterly Return Filing & Monthly Payments

This guide explains the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under GST: who can opt in, how the monthly payment obligation is computed and paid, how the Invoice Furnishing Facility (IFF) works for the first two months of a quarter, relevant due dates, and the consequences of non-payment. QRMP was introduced to reduce compliance burden for small taxpayers by allowing eligible taxpayers to file GSTR-3B quarterly while making smaller monthly tax payments. Understanding QRMP matters for cashflow management, compliance planning and for ensuring that outward-supply invoice data reaches your buyers’ auto-populated purchase statements on time. In this article you will learn the eligibility threshold for QRMP, the two methods available to compute monthly instalments (Fixed Sum Method and the Self-Assessment Method), what the IFF permits and when it applies, the filing and payment due dates you must watch for, and the interest implications of missing the monthly payment deadline. Practical examples are used only as illustrations of the standard FSM percentage where needed. The guidance here references the QRMP rollout date and the key operational features that affect small and medium taxpayers so you can decide whether QRMP suits your GST compliance workflow.

Who is Eligible for the QRMP Scheme?

The QRMP scheme is intended for smaller registered persons to reduce return frequency. A registered person whose aggregate turnover in the preceding financial year was up to Rs.5 crore is eligible to opt for the QRMP scheme. The scheme became available from 1st January 2021.

Eligibility is subject to ongoing turnover monitoring. If the aggregate turnover exceeds Rs.5 crore during any quarter in the current financial year, the taxpayer will cease to be eligible for QRMP from the next quarter. Also, a registered person cannot opt to furnish quarterly returns if the last return that was due on the date of exercising such an option has not been filed, timely compliance of the previously due return is therefore a precondition for opting in.

How to Exercise Option for QRMP Scheme?

Invoice Furnishing Facility (IFF): what it allows and limits

The Invoice Furnishing Facility (IFF) was introduced alongside QRMP and came into effect from 1st January 2021. IFF allows QRMP taxpayers to upload B2B invoice details for the first two months of each quarter so that recipients can get those invoices reflected in their auto-drafted inward supplies statements.

IFF has important operational limits: it can be used only for the first two months of a quarter; invoices pertaining to the last month of the quarter must be uploaded in the quarterly GSTR-1. There is a cap on the total net value of invoices that can be uploaded through IFF, this is restricted to Rs.50 lakh per month. Details submitted via IFF are reflected in the recipients’ GSTR-2A, GSTR-2B, GSTR-4A or GSTR-6A, as applicable.

How to make Monthly Tax Payments under QRMP: FSM and SAM

QRMP gives two alternatives to determine the monthly instalment of tax: the Fixed Sum Method (FSM) and the Self-Assessment Method (SAM). Under FSM, the system pre-fills the monthly amount in form PMT-06 based on a percentage of the cash tax paid in the relevant preceding period. Specifically, if a taxpayer furnished GSTR-3B quarterly in the preceding quarter, the monthly pre-filled payment under FSM is 35% of the tax paid in cash in that preceding quarter. If the taxpayer furnished GSTR-3B monthly during the last quarter, FSM will pre-fill 100% of the tax paid in cash in the last month of the immediately preceding quarter as the monthly payment.

SAM is available as an alternative to FSM; under SAM the taxpayer computes and pays the actual self-assessed tax liability for each month. Taxpayers should choose between FSM and SAM based on which method better matches their expected monthly liabilities and cashflow. The monthly payment obligation (whether FSM pre-filled PMT-06 or self-assessed SAM liability) must be deposited using form PMT-06 by the 25th of the following month.

Due dates and payment timing under QRMP

Interest and consequences of missing payment deadlines

Timely payment of the PMT-06 liability by the 25th of the following month is critical. Where the pre-filled liability in PMT-06 is not paid by the 25th, interest becomes payable. The prescribed rate of interest for delayed payment in these circumstances is 18% per annum.

The same 18% per annum rate applies for other delayed payments as specified under the rules tied to QRMP. Choosing the correct payment method (FSM or SAM) and ensuring timely deposit through PMT-06 helps avoid interest chargeable on late payments.

Input Tax Credit (ITC) flow under QRMP

A principal aim of IFF is to ensure recipients receive inward supply details earlier in the quarter so they can reconcile and claim input tax credit where applicable. The details uploaded through IFF for the first two months are made visible to recipients via their auto-populated statements (GSTR-2A, GSTR-2B, GSTR-4A or GSTR-6A), which facilitates reconciliation ahead of the quarterly GSTR-3B.

Since invoices for the last month of the quarter are uploaded only with the quarterly GSTR-1, suppliers and recipients should coordinate timings: the IFF helps shorten the lag for the first two months, while the quarter-end GSTR-1 captures the remaining invoices and finalises what is reported in the quarterly GSTR-3B.

Practical issues QRMP taxpayers commonly face

Common operational challenges include deciding whether FSM or SAM is more appropriate for the taxpayer’s cashflow and ensuring the PMT-06 pre-filled liability is paid by the 25th to avoid interest. Because IFF is limited to the first two months and has a monthly Rs.50 lakh upload cap, businesses near that cap must plan which invoices to upload and reconcile with the quarterly GSTR-1.

Another practical constraint is that taxpayers who cross the Rs.5 crore threshold during a quarter will need to switch out of QRMP from the next quarter, so monitoring turnover intra-year is important to avoid surprises in return frequency and payment timing.

QRMP simplifies GST return frequency for eligible small taxpayers while preserving monthly tax payments through PMT-06 and improving early availability of supplier invoices via IFF. If your preceding-year turnover is up to Rs.5 crore, consider QRMP but plan carefully: choose FSM or SAM according to your cashflow, use IFF within its limits for early invoice reporting, pay PMT-06 by the 25th to avoid 18% p.a. interest on late payments, and monitor turnover during the year to remain compliant. For any transition or operational questions, consult your tax advisor or the GST portal guidance.