The QRMP Scheme Guide: Quarterly GST Filing with Monthly Payments

Running a business in India is a dynamic task, and tax compliance often feels like a hurdle you’d rather jump over quickly. If you are a small business owner, the burden of monthly tax obligations can feel overwhelming. Many of our clients at CA4Filings come to us looking for ways to reduce this administrative load. If you are looking for professional support, our GST Return Filing service is designed to help you stay compliant without the stress. A game-changer introduced by the government is the Quarterly Return Monthly Payment (QRMP) scheme, which simplifies gst filing by allowing eligible taxpayers to file returns on a quarterly basis while still paying taxes monthly.

In this guide, we will break down exactly how this scheme works and whether it is the right move for your business entity.

What is the QRMP Scheme?

The QRMP scheme was launched to reduce the compliance burden on small taxpayers. Instead of filing your GSTR-3B every single month, you get the flexibility to file it quarterly. However, the government still wants its tax revenue, so you are required to make tax payments on a monthly basis.

This scheme is perfect for businesses that have a lower volume of transactions and want to save time and money on compliance costs. By opting for quarterly gst filing, you essentially cut down your return filing frequency by two-thirds.

Who is Eligible for Quarterly GST Filing?

Not every taxpayer can jump into this scheme. To qualify, your aggregate annual turnover must be up to ₹5 Crores in the preceding financial year. If you are a new taxpayer or a business that has recently crossed this threshold, you can still opt in once your turnover is within the specified limit.

Key Criteria for Eligibility:

Your aggregate turnover must be up to ₹5 Crores.

You must have filed your last due GSTR-3B return.

The scheme applies to both GST practitioners and regular taxpayers.

Understanding Monthly Tax Payments and PMT-06 Challan

Even though you are filing returns quarterly, the government requires monthly payments. You are expected to pay tax for the first two months of the quarter by the 25th of the succeeding month. This is where the pmt 06 challan comes into play. It is a simple digital challan used to deposit your tax liability for the months where no return is filed.

When generating the pmt 06 challan, you have two primary ways to calculate your tax liability:

1. Fixed Sum Method

The system suggests a pre-filled challan based on your previous return data. This is the simplest method if your business has steady, predictable income.

2. Self Assessment Method

If your business faces fluctuations, you can use the self assessment method. Here, you manually calculate your actual tax liability after considering your input tax credit and output liability for the month. This ensures you only pay what you actually owe.

The Role of IFF Invoice Furnishing Facility

One of the biggest concerns for quarterly filers is how their B2B customers will claim Input Tax Credit (ITC) if they aren't filing monthly. This is where the iff invoice furnishing facility helps.

The IFF allows you to upload your B2B invoices for the first two months of the quarter on the GST portal. By using this, your customers can see those invoices in their GSTR-2B and claim their ITC immediately, ensuring you don't lose business partners due to your filing cycle.

Quarterly GSTR 3B: Finalizing the Compliance

At the end of the quarter, you file your quarterly gstr 3b. This return consolidates the details of your supplies, tax payments made via pmt 06 challan, and input tax credit claimed during the quarter. It is the final step in your quarterly compliance cycle, ensuring everything is balanced and reported to the tax authorities.

Frequently Asked Questions

Is the QRMP scheme mandatory?

No, it is entirely optional. If you prefer the traditional monthly filing, you can stick to that.

Can I switch back to monthly filing?

Yes, you can opt out of the QRMP scheme at any time if you prefer monthly gst filing.

How does the small business threshold impact my choice?

If your turnover stays within the small business threshold of ₹5 Crores, you remain eligible. If you cross this limit, you will automatically be transitioned to the monthly filing system.

Can I use IFF for all invoices?

No, the iff invoice furnishing facility is only available for B2B invoices. B2C invoices should be reported in the quarterly GSTR-1.

Let CA4Filings Manage Your Compliance

Navigating the complexities of tax laws can be tricky, especially with shifting deadlines and portal updates. At CA4Filings, we specialize in making gst filing a seamless experience for you. Whether you need help calculating your liability using the self assessment method or managing your quarterly returns, our team is here to handle the paperwork while you focus on growing your business.