If your business has an aggregate annual turnover of Rs 5 crore or less, you do not have to file GSTR-1 and GSTR-3B twelve times a year. The Quarterly Return Monthly Payment (QRMP) scheme, introduced by the CBIC through Notifications 82/2020 to 85/2020-Central Tax and Circular 143/13/2020-GST (all dated November 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-1 + 12 GSTR-3B) down to 8 (4 GSTR-1 + 4 GSTR-3B).
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-1 (outward supplies) once per quarter instead of monthly
- File GSTR-3B (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
| Condition | Requirement |
|---|---|
| Aggregate annual turnover | Up to Rs 5 crore in the preceding FY, and it must stay within Rs 5 crore in the current FY |
| Turnover basis | PAN-based (all GSTINs under the same PAN combined) |
| Return type | Must be a person required to file GSTR-3B |
| Last return | The last GSTR-3B due on the date of opting in must have been filed |
| New registrants | Persons newly registered or opting out of the composition scheme can also choose QRMP |
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), who file GSTR-5
- Online Information and Database Access or Retrieval (OIDAR) service providers, who file GSTR-5A
- TDS deductors under GST (GSTR-7)
- TCS collectors under GST, that is e-commerce operators (GSTR-8)
These persons are outside QRMP because they do not file GSTR-3B.
If your aggregate turnover crosses Rs 5 crore during any quarter of the current FY, you must file monthly from the first month of 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.
| Quarter You Want to File Quarterly | Opt-In Window Opens | Opt-In Window Closes |
|---|---|---|
| April to June (Q1) | February 1 | April 30 |
| July to September (Q2) | May 1 | July 31 |
| October to December (Q3) | August 1 | October 31 |
| January to March (Q4) | November 1 | January 31 |
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 within the same window (1st of the second month of the preceding quarter to the last day of the first month of the quarter). You then file GSTR-1 and GSTR-3B monthly from that 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
| Return | Monthly Filer (per year) | QRMP Filer (per year) |
|---|---|---|
| GSTR-1 | 12 | 4 |
| GSTR-3B | 12 | 4 |
| PMT-06 (tax payment) | Not applicable | Up to 8 (months 1 and 2 of each quarter) |
| Total filings/payments | 24 | Up to 16 |
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-3B Quarterly Due Dates (State-Wise)
The due date for quarterly GSTR-3B depends on which state your principal place of business falls under.
Tax Rate Chart
GSTR-3B 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
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
Source: Rule 61 of CGST Rules as amended by Notification No. 82/2020-Central Tax
FY 2026-27 Quarterly GSTR-3B Due Dates
| Quarter | Period | Category 1 Due Date | Category 2 Due Date |
|---|---|---|---|
| Q1 | April to June 2026 | July 22, 2026 | July 24, 2026 |
| Q2 | July to September 2026 | October 22, 2026 | October 24, 2026 |
| Q3 | October to December 2026 | January 22, 2027 | January 24, 2027 |
| Q4 | January to March 2027 | April 22, 2027 | April 24, 2027 |
Telangana and Andhra Pradesh are Category 1 states, so their quarterly GSTR-3B is due on the 22nd.
Quarterly GSTR-1 Due Dates
GSTR-1 for QRMP filers is due by the 13th of the month following the quarter end.
| Quarter | Period | GSTR-1 Due Date |
|---|---|---|
| Q1 | April to June 2026 | July 13, 2026 |
| Q2 | July to September 2026 | October 13, 2026 |
| Q3 | October to December 2026 | January 13, 2027 |
| Q4 | January to March 2027 | April 13, 2027 |
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-3B filing.
Due Date
PMT-06 is due by the 25th of the month following the month (months 1 and 2 of the quarter).
| Quarter | Month 1 PMT-06 Due | Month 2 PMT-06 Due |
|---|---|---|
| Q1 (Apr-Jun) | May 25, 2026 | June 25, 2026 |
| Q2 (Jul-Sep) | August 25, 2026 | September 25, 2026 |
| Q3 (Oct-Dec) | November 25, 2026 | December 25, 2026 |
| Q4 (Jan-Mar) | February 25, 2027 | March 25, 2027 |
Two Payment Methods
You have two options for calculating your PMT-06 payment amount:
Option 1: Fixed Sum Method (FSM)
Pay 35% of the tax paid in cash (not through ITC) in your GSTR-3B of the preceding quarter, if you filed quarterly. If you filed monthly in the preceding quarter, the amount is 100% of the tax paid in cash in the last month of that quarter. The PMT-06 challan is pre-filled with this amount on the GST portal. No interest is charged for months 1 and 2 if you pay this amount by the 25th, even if actual liability was higher. You settle any difference when you file the quarterly GSTR-3B.
Option 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. Any short payment against actual liability attracts interest at 18%.
Interest and Late Fees on PMT-06
- Interest: 18% per annum on tax paid late (a delayed FSM amount, or a shortfall under SAM), from the day after the 25th to the date of payment
- Late fee: There is no late fee on PMT-06 itself. Late fees apply only to GSTR-3B and GSTR-1 filings. Interest on delayed monthly payment is paid through the quarterly GSTR-3B.
Invoice Furnishing Facility (IFF)
The IFF is an optional facility designed to solve a specific problem: when you file GSTR-1 quarterly, your B2B buyers cannot see your invoices in their GSTR-2B until you file after 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-1)
- Upload B2B invoices only (invoices issued to registered buyers with GSTIN), plus debit and credit notes issued to them
- B2C invoices (sales to unregistered persons) cannot be uploaded via IFF
- Window: from the 1st to the 13th of the following month (monthly filers file GSTR-1 by the 11th)
- Monthly cap: invoices and notes of total value up to Rs 50 lakh per month
IFF and GSTR-1 Integration
Invoices uploaded through IFF for months 1 and 2 are automatically populated in your quarterly GSTR-1. You do not need to upload them again. When you prepare your quarterly GSTR-1, only add the invoices from month 3 plus any B2C and other supplies for all three months.
IFF Due Dates for FY 2026-27
| Quarter | Month 1 IFF Due | Month 2 IFF Due |
|---|---|---|
| Q1 (Apr-Jun) | May 13, 2026 | June 13, 2026 |
| Q2 (Jul-Sep) | August 13, 2026 | September 13, 2026 |
| Q3 (Oct-Dec) | November 13, 2026 | December 13, 2026 |
| Q4 (Jan-Mar) | February 13, 2027 | March 13, 2027 |
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-2B data to claim ITC. Without IFF, they wait until your quarterly GSTR-1 is filed, which can be more than three months after the invoice date (an April 1 invoice reaches GSTR-1 only by July 13). During this period, the ITC remains invisible in their GSTR-2B, 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-3B. 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-2B 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-2B when you file the quarterly GSTR-1. 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 due GSTR-3B 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 100% of the last month's if you filed monthly) 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-1
By the 13th of the month following the quarter end, file your quarterly GSTR-1. Invoices already uploaded through IFF will be pre-populated. Add remaining invoices (month 3 B2B, all B2C including invoice-wise B2CL details for inter-state invoices above Rs 1 lakh, exports, credit/debit notes, nil-rated supplies, HSN summary).
Step 6: File Quarterly GSTR-3B
By the 22nd or 24th (depending on your state category) of the month following the quarter end, file GSTR-3B. Declare your total output tax, claim ITC, and pay the balance tax for the quarter. Amounts paid through PMT-06 in months 1 and 2 sit in your cash ledger and are used to set off the quarter's liability here.
QRMP vs Monthly Filing: Quick Comparison
| Parameter | Monthly Filing | QRMP Quarterly Filing |
|---|---|---|
| GSTR-1 filings per year | 12 | 4 |
| GSTR-3B filings per year | 12 | 4 |
| Tax payments per year | 12 (via GSTR-3B) | 12 (8 via PMT-06 + 4 via GSTR-3B) |
| B2B invoice visibility for buyers | Monthly | Monthly if IFF used; else quarterly |
| IFF availability | Not applicable | Yes (Rs 50 lakh/month cap) |
| Turnover limit | No limit | Up to Rs 5 crore |
| Reconciliation frequency | Monthly | Quarterly |
| Best suited for | B2B-heavy, high-turnover businesses | B2C-heavy or low-turnover SMEs |
Common Mistakes to Watch For
-
Not paying PMT-06 on time: Paying late after the 25th 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: IFF accepts invoices totalling only up to Rs 50 lakh in a month; the rest must go in the quarterly GSTR-1. 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
Is interest charged under the Fixed Sum Method if my actual tax turns out higher?
No, as long as you pay the pre-filled PMT-06 amount, 35% of the previous quarter's tax paid in cash (or 100% of the last month's cash tax if you filed monthly in that quarter), by the 25th for months 1 and 2. Interest is not charged on the difference even if the actual liability for those months was higher, and it is settled in the quarterly GSTR-3B. Under the Self-Assessment Method, any short payment attracts interest at 18% per year.
Do I need to pay PMT-06 if I have no tax liability for the month?
No. A QRMP taxpayer need not make a PMT-06 payment for month 1 or month 2 if there is nil tax liability, or if the balance already in the electronic cash or credit ledger covers the liability for that month. Payment is needed only where tax is actually due and the ledgers do not cover it. Any balance is settled in the quarterly GSTR-3B.
How can my B2B buyers claim ITC quickly if I file quarterly?
Upload your B2B invoices for months 1 and 2 through the Invoice Furnishing Facility by the 13th of the following month. Those invoices then appear in your buyers' GSTR-2B for that month, so they can claim credit as if you were a monthly filer. IFF is limited to B2B invoices worth up to Rs 50 lakh a month, and uploaded invoices flow automatically into your quarterly GSTR-1.
When can I opt into QRMP for the October to December quarter?
The opt-in window for a quarter opens on the 1st day of the second month of the preceding quarter and closes on the last day of the first month of that quarter. For October to December, you can opt in between 1 August and 31 October on the GST portal. Once selected, the choice continues for later quarters until you change it or become ineligible.
What happens if my turnover crosses Rs 5 crore while I am in QRMP?
QRMP is available only while aggregate turnover across all GSTINs on your PAN stays within Rs 5 crore. If it crosses that limit during a quarter, you become ineligible and must file GSTR-1 and GSTR-3B monthly from the next quarter. You cannot opt back in until your turnover qualifies again, so track turnover across every GSTIN under the same PAN.
What is the late fee for filing quarterly GSTR-3B after the due date?
The late fee for GSTR-3B under QRMP works the same way as for monthly filers: Rs 50 per day (Rs 25 CGST plus Rs 25 SGST), or Rs 20 per day for a nil return, subject to the notified caps, counted from the 22nd or 24th due date. Interest at 18% per year also applies on any tax paid late. PMT-06 itself carries no late fee.
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Sources and verification: This guide is based on CBIC Notifications No. 82/2020, 84/2020 and 85/2020-Central Tax dated November 10, 2020 (QRMP scheme, quarterly due dates and Fixed Sum Method), Rule 61A of the CGST Rules 2017 (opting for quarterly return), Section 39(1) of the CGST Act 2017 (GSTR-3B filing obligation), Section 37(1) of the CGST Act 2017 (GSTR-1 filing obligation), and the GST portal QRMP scheme FAQs. PMT-06 payment rules, IFF mechanism, and the Rs 50 lakh monthly cap are verified against CBIC Circular No. 143/13/2020-GST. State-wise quarterly GSTR-3B due dates (22nd for Category 1, 24th for Category 2) follow Rule 61 as amended by Notification 82/2020. 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.
