QRMP Scheme in GST: SME Quarterly Return Guide

If your business has an aggregate annual turnover of Rs 5 crore or less, you do not have to file GSTR One and GSTR ThreeB twelve times a year. The Quarterly Return Monthly Payment (QRMP) scheme, introduced by the CBIC through Notification No. 84/2020-Central Tax (dated October 10, 2020), lets eligible taxpayers file both returns on a quarterly cycle while paying tax monthly. This cuts your total return filings from 24 per year 12 GSTR One + 12 GSTR ThreeB) down to 8 4 GSTR One + 4 GSTR ThreeB).

The trade-off is straightforward: fewer returns, but you still settle your tax liability every month using PMT-06. This guide covers the eligibility rules, opt-in process, IFF mechanism, payment methods, due dates, and practical considerations for SMEs evaluating whether QRMP is the right fit.

What Is the QRMP Scheme?

QRMP stands for Quarterly Return Monthly Payment. Under this scheme, eligible taxpayers:

File GSTR One (outward supplies) once per quarter instead of monthly
File GSTR ThreeB (summary return with tax payment and ITC claim) once per quarter instead of monthly
Pay tax monthly for the first two months of each quarter using form PMT-06
Optionally upload B2B invoices for months 1 and 2 using the Invoice Furnishing Facility (IFF)

The scheme was introduced effective January 1, 2021, and remains in effect for FY 2026-27.

Who Is Eligible for QRMP?

Eligibility is determined at the PAN level, not the GSTIN level. This means the aggregate turnover of all GSTINs registered under your PAN is considered.

Eligible Taxpayers

Not Eligible

The following categories of taxpayers cannot opt for QRMP:

Composition scheme dealers (they file CMP-08 and GSTR-4 separately)
Input Service Distributors (ISD)
Non-Resident Taxable Persons (NRTP)
Casual Taxable Persons
Online Information and Database Access or Retrieval (OIDAR) service providers
TDS deductors under GST
TCS collectors under GST (e-commerce operators)

If your turnover exceeds Rs 5 crore during any quarter, you are automatically migrated to monthly filing from the next quarter.

How to Opt In (and Opt Out)

Opt-In Process

Log in to the GST portal at www.gst.gov.in
Navigate to Services > Returns > Opt-in for Quarterly Return
Select the quarter from which you want to start quarterly filing
Confirm your selection

Once opted in, the scheme continues automatically until you either opt out or your turnover crosses Rs 5 crore.

Opt-In Window

The opt-in window runs from the 1st of the second month of the preceding quarter to the last day of the first month of the quarter you want to file quarterly for.

Opting Out

To switch back to monthly filing, use the same portal path (Services > Returns > Opt-in for Quarterly Return) and select the monthly option during the opt-in window of the preceding quarter. Once you opt out, you file GSTR One and GSTR ThreeB monthly from the next quarter onwards.

Filing Structure Under QRMP

Under QRMP, your filing calendar changes significantly compared to a monthly filer.

Monthly Filer vs QRMP Filer: Filing Count

The net reduction is 8 fewer return filings per year. However, PMT-06 payments add 8 monthly payment obligations, so you are still engaging with the portal 16 times instead of 24.

GSTR ThreeB Quarterly Due Dates (State-Wise)

The due date for quarterly GSTR ThreeB depends on which state your principal place of business falls under.

Tax Rate Chart

GSTR ThreeB Quarterly Due Date by State Category

Due date falls in the month following the quarter end

Category 1 States

Chhattisgarh, MP, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, AP, Daman & Diu, DNH, Puducherry, Andaman & Nicobar, Lakshadweep

22nd

Category 2 States

HP, Punjab, Uttarakhand, Haryana, Rajasthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, WB, Jharkhand, Odisha, J&K, Ladakh, Chandigarh, Delhi

24th

Source: CBIC Notification No. 84/2020-Central Tax; Rule 61A of CGST Rules

FY 2026-27 Quarterly GSTR ThreeB Due Dates

Quarterly GSTR One Due Dates

GSTR One for QRMP filers is due by the 13th of the month following the quarter end.

PMT-06: Monthly Tax Payment

Even though you file returns quarterly, tax liability must be discharged monthly. For months 1 and 2 of each quarter, you pay using form PMT-06. The third month's tax is settled through your quarterly GSTR ThreeB filing.

Due Date

PMT-06 is due by the 25th of the month following the tax period.

Two Payment Methods

You have two options for calculating your PMT-06 payment amount:

Step 1: Fixed Sum Method (FSM)**

Pay 35% of the tax paid in cash (not through ITC) in your GSTR ThreeB of the preceding quarter. The PMT-06 challan is pre-filled with this amount on the GST portal. This method is simpler because it requires no monthly accounting. You simply pay the pre-calculated amount and settle any difference when you file the quarterly GSTR ThreeB.

Step 2: Self-Assessment Method (SAM)**

Calculate your actual tax liability for each month based on your sales and purchases, then pay that amount. This method is more accurate but requires you to maintain monthly books even though you file quarterly. It is preferable if your monthly turnover varies significantly, because paying 35% of a high-turnover quarter's tax during a low-turnover quarter ties up working capital unnecessarily.

Interest and Late Fees on PMT-06

Interest: 18% per annum on any shortfall in PMT-06 payment, calculated from the due date 25th) to the date of actual payment
Late fee: There is no late fee on PMT-06 itself. Late fees apply only to GSTR ThreeB and GSTR One filings. However, interest on delayed PMT-06 is automatically computed and added to your liability in the quarterly GSTR ThreeB.

Invoice Furnishing Facility (IFF)

The IFF is an optional facility designed to solve a specific problem: when you file GSTR One quarterly, your B2B buyers cannot see your invoices in their GSTR TwoB until you file at the end of the quarter. This delays their ITC claims by up to two months.

How IFF Works

Available for months 1 and 2 of each quarter only (not month 3, which is covered by the quarterly GSTR One)
Upload B2B invoices only (invoices issued to registered buyers with GSTIN)
B2C invoices (sales to unregistered persons) cannot be uploaded via IFF
Due date: 13th of the following month (same as monthly GSTR One due date)
Monthly cap: invoices involving aggregate value up to Rs 50 lakh per month

IFF and GSTR One Integration

Invoices uploaded through IFF for months 1 and 2 are automatically populated in your quarterly GSTR One. You do not need to upload them again. When you prepare your quarterly GSTR One, only add the invoices from month 3 plus any B2C and other supplies for all three months.

IFF Due Dates for FY 2026-27

Should You Use IFF?

If a significant portion of your sales is to registered businesses (B2B), using IFF is strongly recommended. Your buyers depend on timely GSTR TwoB data to claim ITC. Without IFF, they wait until your quarterly GSTR One is filed, which can be up to 2.5 months after the invoice date. During this period, the ITC remains invisible in their GSTR TwoB, and some buyers may request you to switch back to monthly filing.

If your business is predominantly B2C (retail, restaurants, consumer services), IFF offers limited benefit because unregistered consumers do not claim ITC.

Benefits of the QRMP Scheme

1. Reduced Compliance Burden

Filing 8 returns per year instead of 24 significantly reduces the time spent on return preparation, data entry, reconciliation, and portal submissions. For small businesses managed by the owner or a part-time accountant, this is a meaningful operational benefit.

2. Cash Flow Flexibility

Under the Fixed Sum Method, you pay 35% of the previous quarter's cash tax liability for months 1 and 2. If your current quarter's actual liability is lower, you effectively have a buffer that gets adjusted in the quarterly GSTR ThreeB. This can improve short-term cash flow, particularly during seasonal low periods.

3. ITC Continuity for Buyers

The IFF ensures that your B2B customers do not suffer an ITC gap. By uploading invoices monthly through IFF, their GSTR TwoB reflects your supplies in near-real time, just as if you were filing monthly.

4. Automatic Continuation

Once opted in, you do not need to re-opt every quarter. The scheme continues until you actively opt out or your turnover crosses the Rs 5 crore threshold.

Limitations and Practical Considerations

1. Monthly Tax Payment Still Required

The "quarterly" label can be misleading. You still interact with the GST portal monthly to pay tax via PMT-06. The saving is in return preparation, not in payment obligations.

2. IFF Cap of Rs 50 Lakh Per Month

If your monthly B2B invoices exceed Rs 50 lakh in aggregate, you cannot upload all of them through IFF. The excess invoices will only appear in your buyers' GSTR TwoB when you file the quarterly GSTR One. For businesses with high-value B2B transactions, this cap can be a constraint.

3. B2B Buyer Pressure

Many larger buyers and corporate procurement teams prefer suppliers who file monthly because it ensures immediate ITC visibility. If you operate in a B2B-heavy sector (manufacturing, wholesale, professional services to corporates), switching to QRMP may invite requests from buyers to revert to monthly filing.

4. Reconciliation Complexity

With quarterly filing, any mismatch between your books and the return is caught only once every three months. Monthly filers catch discrepancies sooner. If your accounting is not up to date, reconciliation at quarter-end can become more time-consuming than twelve smaller monthly reconciliations.

Step-by-Step: Opting In and Filing Your First QRMP Quarter

Step 1: Verify Eligibility

Check your aggregate turnover across all GSTINs under your PAN. If it is within Rs 5 crore for both the current and preceding financial year, you are eligible. Confirm that your latest GSTR ThreeB has been filed.

Step 2: Opt In on the Portal

Log in to the GST portal. Go to Services > Returns > Opt-in for Quarterly Return. Select the quarter from which you want quarterly filing to begin. Ensure you are within the opt-in window (see the opt-in window table above).

Step 3: Pay Tax Monthly via PMT-06

For months 1 and 2 of your quarter, generate PMT-06 on the portal. Choose between Fixed Sum Method (pre-filled at 35% of last quarter's cash tax) or Self-Assessment Method (your calculated liability). Pay by the 25th of the following month.

Step 4: Upload B2B Invoices via IFF (Optional)

If you have B2B sales, upload invoices for months 1 and 2 through the IFF on the portal by the 13th of the following month. Keep within the Rs 50 lakh monthly cap.

Step 5: File Quarterly GSTR One

By the 13th of the month following the quarter end, file your quarterly GSTR One. Invoices already uploaded through IFF will be pre-populated. Add remaining invoices (month 3 B2B, all B2C, exports, credit/debit notes, nil-rated supplies, HSN summary).

Step 6: File Quarterly GSTR ThreeB

By the 22nd or 2Floor 4 (depending on your state category) of the month following the quarter end, file GSTR ThreeB. Declare your total output tax, claim ITC, and pay the balance tax for the quarter. Any excess paid through PMT-06 in months 1 and 2 gets adjusted here.

QRMP vs Monthly Filing: Quick Comparison

Common Mistakes to Watch For

Not paying PMT-06 on time: Missing the 25th deadline attracts 18% p.a. interest. Many first-time QRMP filers forget that tax payment is still monthly.
Using Fixed Sum Method in a high-variance quarter: If your Q1 turnover was Rs 40 lakh but Q2 drops to Rs 10 lakh, paying 35% of Q1's cash tax for July and August ties up cash unnecessarily. Switch to Self-Assessment for better accuracy.
Exceeding the IFF cap without realizing: If you upload invoices totalling more than Rs 50 lakh in a month through IFF, the portal rejects the excess. Track your monthly B2B invoice value before uploading.
Ignoring the opt-in window: You cannot opt in mid-quarter. If you miss the window, you wait for the next cycle.
Assuming QRMP means no monthly interaction: You still access the portal monthly for PMT-06 and optionally IFF. The saving is in return preparation, not portal visits.

Frequently Asked Questions

Can I opt for QRMP if I have multiple GSTINs under the same PAN?

Yes, but each GSTIN can independently opt for or opt out of QRMP. One GSTIN under your PAN can file quarterly while another files monthly. However, the turnover threshold of Rs 5 crore is calculated at the PAN level (aggregate of all GSTINs), so if the combined turnover exceeds Rs 5 crore, none of the GSTINs are eligible.

Is PMT-06 required if I have zero tax liability for a month?

No. If your tax liability for a month is genuinely nil (no outward supplies, or ITC fully offsets the liability), you do not need to file PMT-06 for that month. PMT-06 is required only when there is a net tax payable in cash.

What happens if I do not use IFF at all?

IFF is optional. If you do not use it, your B2B invoices for months 1 and 2 will only appear in your buyers' GSTR TwoB when you file your quarterly GSTR One. Your buyers cannot claim ITC on those invoices until then. This may not matter for B2C-heavy businesses, but B2B buyers may request you to either use IFF or revert to monthly filing.

Can I upload B2C invoices through IFF?

No. IFF is strictly for B2B invoices (supplies to GST-registered recipients). B2C sales, exports, and other categories are reported only in the quarterly GSTR One.

If I opted for QRMP but my turnover crosses Rs 5 crore mid-year, what happens?

You will be migrated to monthly filing from the quarter following the one in which your turnover exceeded Rs 5 crore. The system checks turnover at the PAN level. You cannot continue under QRMP once the threshold is breached.

Is there any late fee on PMT-06?

No. There is no late fee on PMT-06. Late fees under GST apply only to GSTR One and GSTR ThreeB filings. However, interest at 18% per annum is charged on any shortfall or delay in PMT-06 payment, calculated from the due date 25th) to the date of payment.

Can a newly registered taxpayer opt for QRMP immediately?

Yes, provided the taxpayer is a normal taxpayer (not composition, ISD, NRTP, or casual taxable person) and has filed the first GSTR ThreeB after registration. New registrations default to monthly filing, so the taxpayer must actively opt in through the portal during the applicable opt-in window.

Does QRMP affect my GSTR Nine annual return?

No. GSTR Nine (annual return) is filed once a year regardless of whether you are a monthly or quarterly filer. The data in GSTR Nine is aggregated from all your GSTR One and GSTR ThreeB filings for the year, whether those were filed monthly or quarterly.

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Sources and verification: This guide is based on CBIC Notification No. 84/2020-Central Tax dated October 10, 2020 (introduction of QRMP scheme), Rule 61A of the CGST Rules 2017 (quarterly return filing), Section 39 1) of the CGST Act 2017 (GSTR ThreeB filing obligation), Section 37 1) of the CGST Act 2017 (GSTR One filing obligation), and the GST portal QRMP scheme guidelines. PMT-06 payment rules, IFF mechanism, and the Rs 50 lakh monthly cap are verified against CBIC Circular No. 143/13/2020-GST and the GST portal's QRMP FAQ documentation. State-wise GSTR ThreeB due dates 22nd for Category 1, 2Floor 4 for Category 2) are confirmed from CBIC notifications for FY 2026-27. Interest rate of 18% p.a. on late payments is per Section 50 of the CGST Act. All rules and thresholds should be verified against www.gst.gov.in before applying to specific compliance decisions.