QRMP Scheme Explained: Quarterly Return Monthly Payment for SMEs

For a small business owner, filing 24 GST returns a year (12 GSTR-1s and 12 GSTR-3Bs) significantly drains time and accounting resources. The government recognized this compliance burden on small and medium enterprises.

To ease this friction, the Central Board of Indirect Taxes and Customs (CBIC) introduced the Quarterly Return, Monthly Payment (QRMP) Scheme.

As the name suggests, the scheme allows eligible businesses to file their primary GST returns just once a quarter (4 times a year instead of 12) while still paying their net tax liability every month using a simplified challan. This guide breaks down the eligibility criteria, the mechanics of the Invoice Furnishing Facility (IFF), and how to efficiently manage your cash flow under the QRMP scheme for the 2026 Assessment Year.

Eligibility: Who Can Opt for QRMP?

The QRMP scheme is optional. It is designed specifically for small and micro-enterprises.

You are eligible to opt into the scheme if your Aggregate Annual Turnover (AATO) in the preceding financial year was up to ₹5 Crores.

If your turnover crosses the ₹5 Crore threshold during the current financial year, you immediately become ineligible from the next quarter and must switch back to the standard monthly filing cycle.

How to Opt In

The option to select the QRMP scheme is available on the GST Portal under Services > Returns > Opt-in for Quarterly Return. You must exercise this option during the specific window: strictly from the 1st of the second month of the preceding quarter to the last day of the first month of the quarter for which you are opting into the scheme.

(Example: To opt into the April-June quarter, you must select the option between February 1st and April 30th).

Legal Reference

Relevant Law: The QRMP Scheme was introduced via Notification No. 84/2020 – Central Tax and is governed by the provisos to Rule 61 of the CGST Rules, 2017.

The Two Pillars of the QRMP Scheme

The QRMP scheme solves a major dilemma: How can a small supplier file returns quarterly without blocking their corporate buyer from claiming monthly Input Tax Credit (ITC)?

The scheme balances this through two mechanisms: the Invoice Furnishing Facility (IFF) and the Monthly Payment system (PMT-06).

1. The Invoice Furnishing Facility (IFF)

Corporate buyers demand month-wise, invoice-level data pushed into their GSTR-2B. If a small supplier waits three months to file GSTR-1, the buyer's ITC is blocked for three months.

The Invoice Furnishing Facility (IFF) is an optional tool that solves this. During the first two months (M1 and M2) of the quarter, a QRMP taxpayer can upload just their B2B invoices using the IFF.

• Due Date: For M1 and M2, B2B invoices must be uploaded by the 13th of the following month.
• Value Cap: You can upload invoices up to a maximum cumulative value of ₹50 Lakhs per month in the IFF.
• Why it matters: Uploading invoices in the IFF pushes the credit immediately to your buyer's GSTR-2B.

In the third month (M3), you file your actual quarterly GSTR-1. In this return, you do not report the invoices you already pushed through the IFF; you only report the B2C sales from M1 and M2, plus all sales (B2B and B2C) from M3.

2. The Monthly Payment (Form PMT-06)

Though you file GSTR-3B quarterly under this scheme, you must still deposit tax in the Electronic Cash Ledger for the first two months of the quarter by the 25th of the following month using Form GST PMT-06.

You have two methods to calculate this monthly tax deposit:

A. Fixed Sum Method (35% Challan) The portal automatically generates a pre-filled challan equal to 35% of the cash part of the tax liability paid in the preceding quarter (if the last return was quarterly). This is the easiest, risk-free method. Even if your actual liability is higher this month, paying the 35% challan ensures no interest is levied for short payment in M1 or M2.

B. Self-Assessment Method You manually calculate your actual tax liability on Outward Supplies, deduct your eligible ITC available in GSTR-2B for that specific month, and only pay the exact balance due. This is more accurate but requires monthly accounting effort.

In the third month, you file your Quarterly GSTR-3B, consolidate the liability for the entire 3 months, adjust the cash deposits already made in M1 and M2 via PMT-06, and pay any remaining balance.

Common Mistakes Beginners Make

1. Paying Late Fees Instead of Using IFF: Believing they must pay ₹20/day late fees on the 14th if they miss the IFF cutoff on the 13th. The IFF is completely optional. Missing the 13th cutoff doesn't trigger a late fee; it just means those invoices shift to the final Quarterly GSTR-1, temporarily delaying the buyer's ITC realization.
2. Double Reporting B2B Invoices: A critical error under QRMP is uploading an invoice into the IFF in Month 1, and then mistakenly adding that identical invoice again during the Quarterly GSTR-1 filing in Month 3. This creates a duplicate tax liability on the portal, triggering swift scrutiny notices for tax underpayment against the finalized Quarterly GSTR-3B.
3. Ignoring the PMT-06 Payment Requirement: Small business owners mistakenly assume "Quarterly Return" also means "Quarterly Tax Payment." Failing to deposit the M1 and M2 cash balances via the PMT-06 challan by the 25th attracts immediate 18% penal interest on those delayed installment deposits.

Conclusion

The QRMP scheme drastically cuts down the administrative overhead of continuous GST reporting. However, optimizing its cash-flow benefits requires strategic planning. By exclusively utilizing the IFF for demanding B2B clients and opting for the Fixed Sum (35%) payment method, a small business can simultaneously retain its corporate buyers and permanently simplify its own year-end compliance.