QRMP Scheme

What it means

QRMP stands for Quarterly Return Monthly Payment. It lets small GST-registered businesses file GSTR-1 and GSTR-3B once a quarter instead of every month, while still paying tax every month. It cuts return filing from 24 a year to 8.

How it works

• Eligibility: registered taxpayers with aggregate turnover up to ₹5 crore in the previous financial year (and the current year).

• Opting in or out: on the GST portal, from the first day of the second month of the previous quarter up to the last day of the first month of the quarter. Once chosen, the option continues until changed.

• Monthly payment for the first two months of each quarter: through challan PMT-06 by the 25th of the next month. You can use the fixed sum method (35% of the cash tax paid in the last quarter, pre-filled by the portal) or self-assessment of the actual liability.

• IFF (Invoice Furnishing Facility): B2B invoices for the first two months can be uploaded between the 1st and 13th of the next month, so buyers get credit.

• Quarterly GSTR-1: by the 13th of the month after the quarter. Quarterly GSTR-3B: by the 22nd or 24th, depending on the state.

Example

A Gujarat trader under QRMP paid ₹1,20,000 GST in cash in the July to September 2026 quarter. For October to December 2026:

1. Fixed sum method: 35% of ₹1,20,000 = ₹42,000 for October, paid by 25 November 2026.

2. ₹42,000 again for November, paid by 25 December 2026.

3. Actual liability for the quarter after ITC turns out to be ₹1,30,000.

4. Balance payable with the quarterly GSTR-3B: ₹1,30,000 minus ₹84,000 = ₹46,000, by 22 January 2027 (Gujarat falls in the 22nd category).

If self-assessment showed October liability of only ₹30,000, the trader could pay ₹30,000 instead of ₹42,000.

Key points to remember

• Late or short monthly payment attracts interest at 18% a year.

• Late fee for GSTR-3B is ₹50 a day (₹20 for nil returns), subject to caps.

• Buyers prefer suppliers who use IFF, as their credit otherwise waits till the quarter ends.

• If turnover crosses ₹5 crore, you move to monthly returns from the next quarter.