What is QRMP scheme?
Reviewed by CA Apurav GargLast reviewed
In short
The QRMP (Quarterly Return Monthly Payment) scheme lets smaller GST taxpayers file GSTR-1 and GSTR-3B every quarter instead of every month, while still paying tax monthly through Form PMT-06.
Who can use it
A registered person whose aggregate turnover in the previous financial year was within the notified limit can opt for QRMP. The limit can change, so check the current one. Aggregate turnover is counted across all GSTINs with the same PAN. Once the limit is crossed in a quarter, the business moves to monthly returns from the next quarter.
You opt in or out on the GST portal within the window for each quarter. Each GSTIN under the same PAN can choose separately.
How it works
- Returns quarterly: GSTR-1 and GSTR-3B are filed once a quarter. GSTR-3B for the quarter is due in the month after the quarter, on a date that depends on the state.
- Tax monthly: for the first two months of each quarter, tax is paid through Form PMT-06 by the due date in the following month. The third month's tax is paid with the quarterly GSTR-3B.
- Invoice Furnishing Facility (IFF): in the first two months, you can upload B2B invoices in the IFF by its date in the following month, so your registered buyers see the credit monthly. The IFF is optional and does not cover B2C invoices.
Two ways to pay monthly
- Fixed sum method: pay the amount the portal pre-fills from your previous returns. No interest is charged for the first two months even if the actual tax was higher, as long as the quarterly return is filed on time.
- Self-assessment method: work out and pay the actual tax due for the month, after input tax credit. Short payment attracts interest.
Is it right for an ecommerce seller?
QRMP means fewer returns, which suits many small D2C and marketplace sellers. Points to weigh:
- B2B buyers: retailers, distributors and quick-commerce buying entities want their credit monthly. Use the IFF, or stay monthly if most sales are B2B.
- Mismatch checks happen anyway. Marketplace GSTR-8 data is monthly, and your quarterly GSTR-1 must still reconcile with it.
- Cash: tax is still paid monthly, so QRMP does not help working capital much.
- Growth: crossing the limit moves you back to monthly filing. Plan for the switch.
Example in rupees
A brand within the QRMP turnover limit opts for QRMP for October to December. Its tax payable, after input tax credit, is ₹1,20,000 in October, ₹80,000 in November and ₹1,50,000 in December.
| Month | What the brand does | By |
|---|---|---|
| October | Pays ₹1,20,000 through PMT-06 (self-assessment) | Due date in November |
| November | Pays ₹80,000 through PMT-06 | Due date in December |
| November | Uploads its B2B invoices in the IFF, so retail buyers get credit | IFF date in December |
| December | Files GSTR-1 and GSTR-3B for the quarter, paying the remaining ₹1,50,000 | Due date in January, which depends on the state |
The PMT-06 payments sit in the electronic cash ledger and are used in the quarterly GSTR-3B. The brand still issues invoices and keeps books monthly, and its marketplace TCS credit still arrives every month. The figures are illustrative.
Legal reference: CGST Act, 2017: section 39(1), proviso; CGST Rules, 2017: rules 59(2) and 61A; Notification 84/2020-Central Tax
Related terms
Work it out for your business
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We handle bookkeeping, reconciliation, GST and TDS for D2C and marketplace sellers, and can walk you through how this works in your business.
General information only, not professional advice. Rules and rates change — check the official source before you act.