QRMP scheme: quarterly returns, monthly payment

Who can use it

• Registered persons with aggregate turnover up to ₹5 crore in the previous financial year, who file GSTR-3B.
• Each GSTIN under a PAN can choose separately.
• If turnover crosses ₹5 crore during a quarter, you move to monthly filing from the next quarter.

Composition dealers are on their own quarterly system and do not use QRMP.

What is filed when

The GSTR-3B date depends on the state. The 22nd applies in Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Dadra and Nagar Haveli and Daman and Diu, Puducherry, Andaman and Nicobar Islands and Lakshadweep. The 24th applies in the other states and union territories. Confirm current dates on gst.gov.in. The optional monthly invoice upload is covered in the invoice furnishing facility.

Paying tax monthly: two methods

Fixed sum method. The portal works out a pre-filled amount: 35% of the tax paid in cash in the last quarter if you filed quarterly, or the full cash tax of the last month of that quarter if you filed monthly. Pay it by the 25th through PMT-06.

Self-assessment method. Work out the actual tax for the month (output tax minus available ITC) and pay that.

Example. A Nashik trader paid ₹1,20,000 in cash in the October–December quarter. For January and February, the fixed sum is 35% × ₹1,20,000 = ₹42,000 each month. In March's quarterly GSTR-3B, the actual liability for the quarter turns out to be ₹1,40,000 in cash; ₹84,000 is already paid, so ₹56,000 is paid with the return.

If you use the fixed sum and pay on time, no interest is charged for the first two months even if actual tax was higher. Under self-assessment, short payment attracts interest. No payment is needed for a month if there is no liability, or if the credit balance covers it.

Opting in and out

• The option for a quarter can be exercised from the first day of the second month of the previous quarter to the last day of the first month of the quarter. For January–March, that is 1 November to 31 January.
• Once chosen, it continues for future quarters until you change it.
• New registrants can choose it at registration.
• To opt in or out, you must have filed the last return due.

Interest and late fee under QRMP

Late fee applies to the quarterly GSTR-1 and GSTR-3B the same way as for monthly returns, per day of delay after the quarterly due date, subject to caps. There is one return per quarter, so one late filing costs a quarter's worth of delay for buyers too.

Interest is charged on tax paid late. For the first two months, it applies if the PMT-06 payment is made after the 25th, or under self-assessment if the amount paid was short of the actual liability. For the quarter, it applies on any balance paid after the GSTR-3B due date. Keep the monthly PMT-06 receipts; the amounts appear as credit in the electronic cash ledger and are used when the quarterly GSTR-3B is filed.

Is QRMP right for you?

Good fit: retail shops and businesses selling mostly to consumers, service providers with few B2B clients, and businesses with small monthly tax.

Think twice: if large business buyers depend on your invoices for monthly credit, they will want you to use IFF every month anyway, so the saving is smaller. Also, quarterly reconciliation means errors are found later; keep reviewing the books monthly.

This is general information, not tax advice.

Common mistakes

• Forgetting the monthly PMT-06 payment because "returns are quarterly".
• Paying through a normal challan instead of selecting the QRMP monthly payment option.
• Skipping IFF and then losing a big B2B customer who could not claim credit for two months.
• Not noticing turnover crossing ₹5 crore and filing quarterly when monthly was due.

See also what is GSTR-1 and what is GSTR-3B.

Monthly numbers with Cashflow OS

Even on quarterly returns, the monthly tax figure matters. Cashflow OS prepares GSTR-3B and GSTR-1 views from your TallyPrime data for any month or quarter, so you can see the likely tax for a month before choosing the payment method, and the B2B invoices to upload in IFF. Payment and filing happen on the GST portal.