Choosing between the QRMP scheme vs monthly GST filing decides how many returns you file each year and how your customers experience your invoices. The Quarterly Return Monthly Payment (QRMP) scheme lets small taxpayers file GSTR-1 and GSTR-3B once a quarter while paying tax monthly. Monthly filing means twelve of each. Fewer returns sounds better, but if your customers are businesses that want input tax credit every month, QRMP needs the optional Invoice Furnishing Facility (IFF) to keep them happy. This comparison covers eligibility, how payments work, worked examples and a decision checklist.
Who can opt for QRMP
- Registered persons with aggregate annual turnover up to ₹5 crore in the preceding financial year, computed on a PAN basis.
- Persons who have filed the last due GSTR-3B before opting in.
- New registrants can choose QRMP at registration.
- If turnover crosses ₹5 crore during a year, the taxpayer moves to monthly filing from the next quarter.
The option can be exercised for any quarter, from the 1st of the second month of the preceding quarter to the last day of the first month of the quarter. For example, for April to June, the window is 1 February to 30 April. Once chosen, it continues until changed.
Side-by-side comparison
| Point | Monthly filing | QRMP |
|---|---|---|
| GSTR-1 | Monthly by the 11th | Quarterly by the 13th of the month after the quarter; optional IFF for months 1 and 2 by the 13th |
| GSTR-3B | Monthly by the 20th | Quarterly by the 22nd or 24th, depending on state |
| Tax payment | Monthly with GSTR-3B | Months 1 and 2 through PMT-06 by the 25th; month 3 with quarterly GSTR-3B |
| Returns per year | 24 (12 GSTR-1 + 12 GSTR-3B) | 8 (4 GSTR-1 + 4 GSTR-3B), plus up to 8 PMT-06 challans and optional IFF |
| Customer ITC timing | Monthly | Quarterly, unless IFF is used for B2B invoices |
| Late fee exposure | Per monthly return | Per quarterly return |
| ITC claim | Monthly in GSTR-3B | Quarterly in GSTR-3B, based on GSTR-2B for the quarter |
| Reconciliation effort | Monthly | Can be quarterly, but monthly is still recommended |
How monthly payment works under QRMP
For the first two months of each quarter, QRMP taxpayers pay through challan PMT-06 by the 25th of the following month, using one of two methods.
Fixed sum method
The portal pre-fills a challan amount:
- 35% of the tax paid in cash in the preceding quarter, if the preceding quarter's GSTR-3B was filed quarterly; or
- 100% of the tax paid in cash in the last month of the preceding quarter, if GSTR-3B was filed monthly.
No interest is charged for months 1 and 2 if you pay the pre-filled amount, even if actual liability turns out higher, provided the full quarterly liability is paid with the quarterly GSTR-3B by its due date. No payment is needed if the cash ledger and credit ledger balances cover the liability, or if there is nil liability.
Self-assessment method
You compute actual liability for the month, after considering ITC available from GSTR-2B for that month, and pay the net cash amount. Interest applies if the amount paid is less than the actual liability.
Worked example: fixed sum method
A Kochi trader opted for QRMP. In the January to March quarter, it paid ₹3,00,000 of GST in cash. For April to June:
| Month | Actual net cash liability | PMT-06 under fixed sum |
|---|---|---|
| April | ₹1,20,000 | ₹1,05,000 (35% of ₹3,00,000) |
| May | ₹90,000 | ₹1,05,000 |
| June | ₹1,10,000 | Paid with quarterly GSTR-3B |
| Quarter total | ₹3,20,000 | ₹2,10,000 paid in advance |
With the quarterly GSTR-3B, the trader pays the balance of ₹3,20,000 minus ₹2,10,000 = ₹1,10,000. Under the fixed sum method, the April shortfall of ₹15,000 does not attract interest, as long as the quarterly return and payment are on time.
Worked example: self-assessment method
Using the same actual figures, the trader pays ₹1,20,000 for April by 25 May and ₹90,000 for May by 25 June, then ₹1,10,000 with the quarterly return. If it paid only ₹1,00,000 for April by 25 May and the remaining ₹20,000 with the quarterly return on 22 July, interest at 18% per annum would apply on ₹20,000 for the delay from 26 May to 22 July (58 days): ₹20,000 x 18% x 58 / 365 = ₹572.05.
The customer ITC question
Under QRMP, if you do not use IFF, invoices issued in April appear in your customers' GSTR-2B only after you file the quarterly GSTR-1 in July. A registered customer who files monthly cannot claim that credit until then. For B2B-heavy businesses, this can delay payments and strain relationships. IFF solves this: you upload B2B invoices for months 1 and 2 (up to a total value of ₹50 lakh per month) and they reach customers' GSTR-2B monthly. The cost is that you are effectively doing monthly GSTR-1 work for B2B invoices anyway.
Which one should you choose?
| Business profile | Usually better | Reason |
|---|---|---|
| Retailer or service provider selling mainly to consumers | QRMP | Customers do not need ITC; fewer returns |
| Small B2B supplier with few invoices | QRMP with IFF | Customers get ITC monthly; GSTR-3B stays quarterly |
| B2B supplier with many invoices and large customers | Monthly | Monthly discipline suits customers' reconciliation; IFF limit may bind |
| Business with large monthly ITC or refunds | Monthly | Faster use of credit and refund cycles |
| Business close to ₹5 crore turnover | Monthly | Avoids switching mid-year when the limit is crossed |
| Owner-managed business with limited accounting help | QRMP | Fewer filings; fixed sum payment is simple |
Workload compared: a year in numbers
For a small business with about 150 sales invoices a month, of which 40 are B2B, the difference in filings looks like this:
| Activity per year | Monthly filing | QRMP without IFF | QRMP with IFF |
|---|---|---|---|
| GSTR-1 or IFF uploads | 12 | 4 | 4 GSTR-1 + 8 IFF |
| GSTR-3B filings | 12 | 4 | 4 |
| PMT-06 challans | 0 | Up to 8 | Up to 8 |
| GSTR-2B reconciliations (recommended) | 12 | 12 | 12 |
| Customer credit timing | Monthly | Quarterly | Monthly for B2B |
The table shows why QRMP saves less work than the headline "8 returns instead of 24" suggests. Reconciliation should still be monthly, because supplier problems found three months late are harder to fix, and B2B businesses usually end up using IFF. The real saving is in GSTR-3B: four filings instead of twelve, and simpler payment through the fixed sum method.
ITC under QRMP
Under QRMP, ITC is claimed in the quarterly GSTR-3B, based on GSTR-2B generated for the quarter. Under the self-assessment payment method, monthly GSTR-2B for months 1 and 2 helps you estimate net liability. Under the fixed sum method, ITC for the whole quarter is adjusted only in the quarterly return. This matters for businesses whose ITC is large and lumpy, for example a business that buys a large machine in April: a monthly filer can use that credit in April's return, while a QRMP filer under the fixed sum method may still pay the pre-filled challan in May and only adjust the credit in July. If ledger balances already cover the liability, though, no PMT-06 payment is needed.
Switching from QRMP to monthly, and back
- Moving to monthly is useful when turnover approaches ₹5 crore, when you start serving larger B2B customers, or when refunds or credit timing become important.
- Moving to QRMP suits businesses that have shifted to mainly consumer sales or want to simplify compliance after a period of growth slows.
- In either case, use the opt-in window for the quarter, complete the last due GSTR-3B before switching, and update your compliance calendar and payment reminders immediately.
Common mistakes under QRMP
- Missing PMT-06 payments in months 1 and 2, then paying interest under self-assessment.
- Not using IFF when B2B customers depend on monthly credit.
- Doing reconciliation only once a quarter, so supplier issues pile up.
- Forgetting the state-specific 22nd or 24th GSTR-3B date.
- Assuming QRMP changes e-invoicing or e-way bill obligations. It does not.
For all the dates in one place, see our GST compliance calendar.
How Fininvo helps
Whether you file monthly or quarterly, Fininvo ERP generates GSTR-1 and GSTR-3B data from posted transactions, so IFF uploads and monthly liability estimates for PMT-06 come from the same books. See tax compliance, invoicing and pricing.
General information, not tax advice. Eligibility, IFF limits and payment rules are notified by CBIC; consult your CA.
Frequently Asked Questions
Can I switch between QRMP and monthly filing?
Yes, within the opt-in window for each quarter. The choice applies from the quarter selected and continues until you change it.
Is IFF mandatory under QRMP?
No. IFF is optional. It is useful when B2B customers need credit every month.
Do I have to pay tax every month under QRMP?
Yes, for months 1 and 2 of each quarter through PMT-06, unless your ledger balances cover the liability or there is nil liability. Month 3 is paid with the quarterly return.
Can a business with multiple GSTINs choose QRMP for some of them?
Yes. If the PAN's aggregate turnover is within ₹5 crore, each GSTIN can independently choose QRMP or monthly filing.
Does QRMP reduce late fees?
It reduces the number of returns, so the number of potential late fees falls. The per-day late fee and caps still apply to each quarterly return.
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