The Central Board of Indirect Taxes & Customs (CBIC) launched the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under the Goods and Services Tax (GST) regime. This initiative assists small taxpayers, specifically those with an aggregate turnover up to Rs.5 crore, by allowing them to submit GSTR-3B returns quarterly while remitting taxes on a monthly basis.

Recent Updates on the QRMP Scheme During 2025 and 2024

Prior to June 2025, QRMP taxpayers encountered issues with refund applications, as the portal failed to recognize invoices submitted via the Invoice Furnishing Facility (IFF) for the initial two months of a quarter. The GSTN has since resolved this technical problem, as per its advisory, allowing taxpayers to proceed with refund applications for invoices already included in GSTR-3B filings.

In July 2024, an advisory regarding GSTR-1A clarified several points for QRMP taxpayers:

• GSTR-1A becomes accessible after the quarterly GSTR-1 is filed or its due date passes, whichever occurs later.
• This facility remains available until the GSTR-3B for the same tax period is filed.
• Amendments to supplies reported in the quarterly GSTR-1 and IFF [for the first month (M1) and second month (M2)] can be made through the corresponding quarterly GSTR-1A.
• The combined effect of GSTR-1A, GSTR-1, and IFF data will automatically populate in the quarterly GSTR-3B.
• No distinct amendment option is provided for supplies reported solely through IFF.

Eligibility Criteria for the QRMP Scheme

Taxpayers obligated to submit GSTR-3B returns are eligible for the QRMP scheme if their aggregate turnover in the prior financial year did not exceed Rs.5 crore. Should a registered person's aggregate turnover surpass Rs.5 crore in any quarter of the current financial year, they will become ineligible for the scheme starting from the subsequent quarter. The aggregate annual turnover for the preceding financial year is determined by the common portal, based on the details provided in the taxpayer's returns for that period. This quarterly GSTR-3B submission option commenced on January 1, 2021. The scheme is voluntary and can be chosen for each GSTIN.

Opting into the QRMP Scheme

To select the quarterly GSTR-3B filing option, a registered person must indicate their choice on the GST portal. This selection window extends from the first day of the second month of the preceding quarter until the last day of the first month of the quarter for which the option is being activated. For instance, to file quarterly returns for April-June 2025, a taxpayer would need to opt-in via the GST portal between February 1, 2025, and April 30, 2025. Once chosen, quarterly filing will generally apply to all subsequent tax periods unless specific conditions are met:

• Ineligibility: If the taxpayer's aggregate turnover surpasses Rs.5 crore during a quarter, they must switch to monthly GSTR-3B filing from the next quarter.
• Pending Returns: A registered person cannot opt for quarterly filing if any previously due return, up to the date of selection, remains unfiled. For example, if opting for quarterly GSTR-3B on December 1, 2024, the GSTR-3B for October 2024 (the last due return) must be submitted first.

Deemed GSTR-3B Filing Frequency (Monthly or Quarterly)

While taxpayers typically follow a procedure to opt for quarterly GSTR-3B, certain registered persons who filed their GSTR-3B return for October 2020 by November 30, 2020, were automatically assigned a filing frequency. The deemed options were as follows:

Taxpayers in category 2 had the option to override this default and choose quarterly GSTR-3B filing between December 5, 2020, and January 31, 2021.

Procedure for Submitting Outward Supply Details

Taxpayers under the QRMP scheme can leverage the Invoice Furnishing Facility (IFF), which enables those filing GSTR-1 quarterly to upload their invoices each month. Key considerations for using the IFF include:

• The IFF is exclusively for the first two months of a quarter.
• Invoices pertaining to the final month of a quarter must be uploaded solely within the GSTR-1 return.
• If invoices have already been uploaded through the IFF, there is no need to re-upload them in GSTR-1.
• Taxpayers are required to submit B2B invoice details for both inter-state and intra-state sale transactions, along with any associated debit and credit notes issued during the month.
• The maximum net value of invoices that can be uploaded via IFF is capped at Rs.50 lakh per month.
• Information submitted through the IFF will appear in the recipient's GSTR-2A, GSTR-2B, GSTR-4A, or GSTR-6A, as applicable.
• The Invoice Furnishing Facility became operational on January 1, 2021.

Monthly Tax Payment Options Under the QRMP Scheme

For the first and second months of each quarter, taxpayers must remit their tax using Form PMT-06 by the 25th day of the subsequent month. Two methods are available for settling monthly tax liabilities:

Fixed Sum Method (FSM) or 35% Challan Method

Under this method, taxpayers pay an amount specified in a pre-filled challan (GST PMT-06), which is equivalent to 35% of the tax paid in cash during a previous period. The calculation varies based on the taxpayer's previous filing frequency:

Illustrative Examples for FSM:

Scenario 1: If GSTR-3B for January 2025 to March 2025 was submitted quarterly:

Scenario 2: If GSTR-3B was submitted monthly during the January 2025 to March 2025 quarter:

Self-Assessment Method (SAM)

The Self-Assessment Method is the conventional approach where taxpayers determine their monthly tax liability by accounting for inward and outward supplies and available Input Tax Credit (ITC). The computed tax is then remitted manually via Form PMT-06. Taxpayers can utilize Form GSTR-2B to ascertain the monthly ITC. In certain circumstances, no tax deposit may be necessary:

• For the first month of the quarter: if the electronic cash/credit ledger holds sufficient balance to cover the tax liability, or if the tax liability is zero.
• For the second month of the quarter: if the electronic cash/credit ledger contains enough balance to cover the cumulative tax liability for both the first and second months, or if the tax liability is zero.

It is crucial to note that a registered person cannot use these payment procedures unless they have filed the return for the complete tax period immediately preceding the month in question. A "complete tax period" signifies a period where the individual was registered from the first to the last day.

Quarterly GSTR-3B Filing Deadlines

The stipulated due dates for submitting quarterly GSTR-3B returns are as follows, categorized by states and union territories:

Input Tax Credit (ITC) Claims for QRMP Scheme Participants

The process for claiming Input Tax Credit (ITC) remains consistent for registered persons under the QRMP scheme. Taxpayers employing the self-assessment method for their first two monthly tax payments within a quarter can account for ITC as indicated in their monthly GSTR-2B statement. The remaining GST liability can then be settled in cash. It is important to note that the quarterly GSTR-2B is generated on the 14th of the month following the quarter, after the submission of the quarterly GSTR-1. Consequently, buyers engaging with QRMP vendors must consult the quarterly GSTR-2B for accurate ITC claims.

Interest Calculation Under the QRMP Scheme

Interest implications vary based on the chosen payment method:

Fixed Sum Method (FSM) or 35% Challan Method:

*The GSTR-3B due date is the 22nd or 24th of the month following the quarter, depending on the taxpayer's state.

Self-Assessment Method (SAM):

Taxpayers opting for the Self-Assessment Method are liable to pay 18% interest on any net tax liability that remains unpaid or is paid after the due date for the first two months of the quarter. Additionally, an 18% interest rate applies to any late tax payments made during the third month of a quarter, irrespective of whether FSM or SAM was used for the initial months.

Late Fees for QRMP Scheme

If the quarterly GSTR-3B is not submitted by its due date, late fees are applied as detailed below, capped at a maximum of Rs.5,000:

It is important to note that no late fee is imposed for delayed tax payments in Form PMT-06 during the first two months of a quarter.

Challenges Associated with the QRMP Scheme

Deciding whether to adopt the QRMP scheme or continue with monthly returns presents a significant challenge for businesses, as this choice must be made individually for each GSTIN linked to a PAN, which can be both complex and time-intensive. Furthermore, taxpayers utilizing the Invoice Furnishing Facility (IFF) within the scheme must meticulously categorize their documents into B2B and non-B2B transactions. This segregation is crucial for properly submitting B2B documents via IFF and all other transactions directly through the quarterly GSTR-1 return. The need for thorough reconciliation among IFF data, the sales register, and GSTR-1 also becomes more pronounced. Additionally, QRMP taxpayers face the monthly decision of choosing between the Fixed Sum (35% challan) Method and the Self-Assessment Method for tax payments.