QRMP Scheme Explained: Quarterly GST Returns for Small Businesses

Small businesses don't have to file GST returns every month. Under the Quarterly Return Monthly Payment (QRMP) scheme, eligible businesses file returns quarterly, while paying tax monthly. This guide explains how it works and when to use it.

Who Can Opt In

Registered taxpayers with aggregate turnover up to ₹5 crore in the previous financial year, filing GSTR-3B, can opt for QRMP. The option is exercised on the GST portal and applies until changed.

How It Works

Returns

• GSTR-1 is filed quarterly.
• GSTR-3B is filed quarterly, by the 22nd or 24th of the month after the quarter, depending on the state.

Monthly tax payment

For the first two months of each quarter, tax is paid monthly using a challan, by the 25th of the following month. There are two methods:

• Fixed sum method: pay a pre-filled amount based on past returns.
• Self-assessment method: pay the actual tax due for the month after credit.

Invoice Furnishing Facility (IFF)

For the first two months, you can upload B2B invoices through IFF, so your business customers get their credit monthly rather than waiting for the quarter.

When QRMP Makes Sense

• Mostly B2C sales, where customers don't need credit.
• Low transaction volumes.
• Businesses wanting fewer filings.

When Monthly Filing May Be Better

• Many B2B customers who expect their credit monthly and would otherwise need IFF uploads anyway.
• Businesses with refunds, which are easier with monthly returns.
• Businesses near the ₹5 crore limit.

Late Fees and Interest

Late quarterly returns attract late fees, and tax paid late — including monthly payments — attracts interest.

Getting Help

Think Filing advises on whether QRMP suits your business and manages both monthly and quarterly filings.