In this guide · 9 sections
Filing two GST returns every month is a lot of work for a small business. The QRMP scheme — Quarterly Return filing and Monthly Payment of tax — cuts that to eight returns a year instead of 24, while you keep paying tax every month.
Who can use QRMP
- registered taxpayers with aggregate turnover up to ₹5 crore in the previous financial year
- new registrants, who can opt in at the time of registration
Composition taxpayers are not covered — they have their own quarterly system. If your turnover crosses ₹5 crore during the year, you move to monthly filing from the next quarter.
How it works
| What | When |
|---|---|
| GSTR-1 (sales) | Once a quarter, by the 13th of the month after the quarter |
| Invoice Furnishing Facility (IFF) | Optional, for B2B invoices in months 1 and 2, by the 13th of the next month |
| Tax payment (PMT-06) | Months 1 and 2, by the 25th of the next month |
| GSTR-3B | Once a quarter, by the 22nd or 24th of the month after the quarter |
The 22nd applies to taxpayers in states such as Maharashtra, Karnataka, Gujarat, Tamil Nadu and Kerala, among others. The 24th applies to states such as Delhi, Uttar Pradesh, Rajasthan, Punjab, West Bengal and Bihar, among others. Check which group your state is in.
The Invoice Furnishing Facility (IFF)
Your business buyers can claim input tax credit only when your invoices appear in their GSTR-2B. Under QRMP, without IFF, that would happen only once a quarter.
IFF lets you upload B2B invoices for the first two months of the quarter — up to ₹50 lakh in value per month — so your buyers get credit monthly. It is optional, but if your customers are mostly businesses, they will appreciate it.
Paying tax every month: two methods
1. Fixed sum method
The portal pre-fills a challan for:
- 35% of the net cash tax paid in the last quarter, if you filed quarterly, or
- the full cash tax paid in the last month of the previous quarter, if you filed monthly
You just pay the pre-filled amount. No calculation needed. Some cases don't need payment, such as when the amount is nil or credit covers the liability.
2. Self-assessment method
You work out the actual tax due for the month — output tax minus available input tax credit — and pay that amount. This suits businesses whose sales vary a lot from month to month.
Whichever method you use, the amounts paid are adjusted when you file the quarterly GSTR-3B.
Interest and late fees
- If you pay less than required in months 1 or 2 under self-assessment, 18% interest applies on the short payment.
- Under the fixed sum method, no interest is charged for months 1 and 2 if you pay the pre-filled amount, even if the actual tax is higher — as long as the full tax is paid with GSTR-3B.
- Late GSTR-3B attracts a late fee per day, as for monthly filers.
Advantages of QRMP
- fewer returns — 8 a year instead of 24
- lower compliance cost, especially for businesses that pay a CA per return
- simple payments under the fixed sum method
- monthly credit for buyers through IFF, where you use it
When QRMP may not suit you
- Many B2B customers: if you don't use IFF, they get credit only quarterly, and big buyers may push back.
- Large refunds on exports or inverted duty structure — monthly filing gets refunds faster.
- Irregular cash flow: the fixed sum may not match what you actually owe in a slow month.
- Busy bookkeeping: you still need monthly records to use self-assessment or IFF properly.
How to opt in or out
On the GST portal, go to Services → Returns → Opt-in for Quarterly Return. You can change your choice for a quarter between the 1st of the second month of the previous quarter and the last day of the first month of the quarter. For example, to file quarterly from April–June, opt in between 1 February and 30 April.
Frequently asked questions
Can I switch between monthly and quarterly filing?
Yes, within the opt-in window for each quarter, as long as you have filed the last return due.
Do I still pay tax monthly under QRMP?
Yes. You pay tax for the first two months by the 25th of the next month using PMT-06, and settle the quarter with GSTR-3B.
Is IFF compulsory?
No. It is optional, but useful if your buyers want to claim credit every month.
What happens if my turnover crosses ₹5 crore?
You must move to monthly filing from the quarter after the one in which your turnover crosses ₹5 crore.
