If your turnover is under Rs 5 crore, the QRMP scheme can cut your GST paperwork from twelve returns a year to four — without falling behind on tax. This guide explains who is eligible, how the Quarterly Return Monthly Payment scheme actually works, the two ways to pay monthly, and when it does (and does not) suit your business.
- QRMP is open to taxpayers with turnover up to Rs 5 crore in the previous financial year.
- You file GSTR-1 and GSTR-3B quarterly but pay tax monthly via a PMT-06 challan.
- The Invoice Furnishing Facility (IFF) lets you pass on B2B credit to buyers monthly.
- It reduces filings, not your tax liability — you still pay every month.
Who is eligible
Any registered taxpayer with an aggregate turnover of up to Rs 5 crore in the previous financial year can opt in. You choose it GSTIN by GSTIN, and you can switch at the start of any quarter through the portal. New registrations are typically defaulted based on turnover but can change their preference.
Quarterly returns, monthly tax
- GSTR-1 and GSTR-3B are filed once a quarter instead of monthly.
- Tax is still paid monthly for the first two months of the quarter, using a simple challan (PMT-06).
- The Invoice Furnishing Facility (IFF) lets you upload B2B invoices monthly so your buyers do not wait a full quarter for their credit.
The two ways to pay monthly
| Method | How it works | Best for |
|---|---|---|
| Fixed Sum Method (35% challan) | Pay 35% of last quarter's cash tax (or 100% of last month for regular filers) | Stable, predictable turnover |
| Self-Assessment Method | Calculate actual tax due for the month and pay that | Fluctuating sales or high ITC |
The QRMP calendar
- Month 1 & 2: pay tax via PMT-06 by the 25th; optionally upload B2B invoices via IFF by the 13th.
- Month 3 (quarter-end): file quarterly GSTR-1 and GSTR-3B, settling the balance.
“QRMP reduces filings, not your tax liability. You still pay monthly, you just report quarterly.”
When QRMP is not the right fit
QRMP is ideal for small businesses with steady, predictable sales. It is less suited to you if invoicing is heavy and your buyers need credit fast, or if your ITC swings sharply month to month. In those cases, monthly filing keeps everyone reconciled in real time.
Frequently asked questions
Can I switch between QRMP and monthly filing?
Yes. You can change your filing frequency at the start of any quarter through the GST portal, subject to eligibility.
Do I still pay tax every month under QRMP?
Yes. QRMP changes when you file returns, not when you pay. Tax is paid monthly via a PMT-06 challan for the first two months of each quarter.
Is IFF mandatory?
No, the IFF is optional. But if you have B2B customers who need their input credit promptly, using it each month is strongly advisable.
Not sure which cadence fits? Our GST return filing experts will set you up on the right schedule and handle every filing. See all GST services.
