QRMP scheme under GST: Eligibility, Process & Benefits

The Quarterly Returns with Monthly Payments Scheme is designed to help small businesses in India reduce the hassle of filing GST frequently. It allows you to submit GSTR-1 and GSTR-3B once every quarter while paying taxes monthly through Form GST PMT-06. By opting in through the GST portal, businesses can enjoy smoother compliance and better cash flow management. In this article, you will learn about the QRMP scheme under GST in detail.

What is the QRMP Scheme?

The QRMP Scheme (Quarterly Return Filing and Monthly Payment) is a GST initiative by the Government of India for small taxpayers with turnover up to Rs. 5 crore. It allows businesses to file GSTR-3B quarterly instead of monthly, while paying tax every month. This reduces compliance burden and saves time, especially for small traders and service providers. Tax payments can be made via the fixed sum method or self-assessment.

Eligibility Criteria for the QRMP Scheme

The QRMP (Quarterly Return & Monthly Payment) scheme is a helpful GST option for small businesses wanting simpler compliance. To be eligible, you need to meet all of these clear-cut criteria:

• Annual Turnover Up to Rs. 5 Crore: Your total sales (PAN-based) in the previous financial year must not exceed Rs. 5 crore
• Must Be a Regular Taxpayer: You should not be registered under the Composition Scheme, or be a non-resident taxable person, casual taxable person, or Input Service Distributor
• No E-Commerce Tax Collection: If you sell through an e-commerce platform that collects tax at source under Section 52 of the CGST Act, QRMP is not available to you
• All Past GSTR-1 and GSTR-3B Returns Filed: You must be up to date with all due GST returns before opting in for QRMP
• Option Exercised Within Deadline: You can opt into the scheme any time from the second month of the preceding quarter until the first month of the current quarter

How Does the QRMP Scheme Work?

Let us discuss how the QRMP scheme works:

Quarterly Return Filing: Under the QRMP scheme, you file both GSTR-1 (customer invoices) and GSTR-3B (summary return) just once every quarter, not every month. This cuts down the paperwork significantly.

Monthly Tax Payments: Though returns are quarterly, you still pay taxes every month. Use Form GST PMT-06 to pay by the 25th of the next month.

Two Ways to Pay Each Month

• Fixed Sum Method: Pay a preset amount, either 35% of last quarter’s tax paid or 100% of last month’s tax.
• Self-Assessment: Calculate your actual tax liability considering sales, purchases, and input credits, then pay that amount.

Invoice Furnishing Facility (IFF): For the first two months of the quarter, you can upload your B2B invoices via IFF. This lets your clients claim input tax credit right away, even before you file your full quarterly return.

Quarter-End Reconciliation: At the end of the quarter, the taxes you have paid monthly are adjusted in your GSTR-3B return. If you have overpaid, you can either get a refund or carry forward the credit to offset future liabilities.

How to Apply for the QRMP Scheme?

The details below include how to apply for the QRMP scheme:

Step 1: Check if You are Eligible

Make sure your business’s annual turnover (on all GSTINs under your PAN) did not exceed Rs. 5 crore in the previous financial year. And ensure that your last GSTR-3B return is filed, and if it is pending, you cannot opt-in yet.

Step 2: Log In and Find the QRMP Option

Head to the official GST Portal (gst.gov.in), log in, and navigate to:

• Services, then Returns, and then Opt-in for Quarterly Return.
• This is where you choose to switch to quarterly filing with monthly payments.

Step 3: Select the Right Time to Opt-In

You can opt in during a specific window:

• From the 1st day of the second month before the quarter you want to join.
• Till the Last day of the first month of that quarter.

For example, to apply for the July–September quarter, you must opt in between May 1 and July 31.

Step 4: Confirm and Submit

• Once you have picked the quarter, review your selection and click SAVE.
• You will get a confirmation message, and an SMS or email will be sent to the primary contact on your GST account.

Step 5: What Happens Next

After opting in:

• You will file GSTR-1 and GSTR-3B quarterly.
• You will pay GST monthly using Form GST PMT-06, either with a fixed amount (35% of last quarter’s cash tax) or via self-assessment, whichever suits you.

And that is it, all set for smoother filing, better cash flow, and fewer headaches!

Benefits of the QRMP Scheme Under GST

Let us discuss the benefits of the QRMP scheme under GST:

Much Less Paperwork

With the QRMP scheme, you only file your GST returns (GSTR-1 and GSTR-3B) once every quarter, not every month. This slashes the number of filings from 12 to just 4 a year, which is a huge relief for small business owners.

Better Cash Flow Control

Even though returns are quarterly, taxes are paid monthly using one of two simple methods:

• Fixed Sum Method: Pay 35% of last quarter’s tax.
• Self-Assessment Method: Pay what you owe after inputting credits.

This flexibility helps you manage money more easily and avoid big lump-sum payments.

Faster Input Tax Credit for Your Buyers

Through the Invoice Furnishing Facility (IFF), you can upload B2B invoices monthly for the first two months of each quarter. That means your buyers don’t have to wait for quarterly filings to claim their input tax credit, boosting goodwill and their cash flow.

Lower Compliance Costs

Filing less often and having streamlined payment methods means you save on accounting work and professional fees. The reduced admin burden lets you focus more on growing your business.

Easy to Join or Leave

Opting into or out of the QRMP scheme is simple and flexible. You can do it through the GST portal at the start of each quarter, so you stay in full control of what works best for your business.

The QRMP Scheme under GST is more than just a compliance option. It is a smart move for small businesses that are aiming for less paperwork, smoother tax payments, and better cash flow. With quarterly filing, flexible payment methods, and faster input tax credit benefits, it reduces stress while keeping you GST-compliant. By opting for this on time, you are saving your effort, cutting costs, and focusing on what matters, which is growing your business. This article provided you with a detailed guide on the QRMP scheme under GST. Contact Online Legal India to get assistance and support in filing a GST registration from professional experts.

FAQ

1. Who can opt for the QRMP Scheme?

Any GST-registered business with an annual turnover of ?5 crore or less in the previous financial year can choose the QRMP Scheme. However, you must be a regular taxpayer, have no pending GSTR-1 or GSTR-3B returns, and should not be registered under the Composition Scheme.

2. How often do I need to file GST returns in the QRMP Scheme?

You only file GSTR-1 and GSTR-3B once every quarter instead of every month. This means fewer returns, just 4 times a year, but you still pay GST monthly.

3. How do I pay tax every month under the QRMP Scheme?

You can pay monthly GST using Form GST PMT-06 in two ways:

• Fixed Sum Method: Pay 35% of the tax you paid last quarter.
• Self-Assessment Method:  Calculate and pay the actual tax you owe after adjusting input credits.

4. What is the Invoice Furnishing Facility (IFF) and why is it useful?

IFF allows you to upload B2B invoices in the first two months of a quarter so your buyers can claim input tax credit without waiting for your quarterly GSTR-1. It improves business relationships and helps buyers with their cash flow.

5. Can I leave the QRMP Scheme if I change my mind?

Yes. You can opt in or out of the QRMP Scheme at the start of any quarter through the GST portal. This flexibility means you can switch back to monthly filing if it suits your business better.