QRMP Scheme Explained: Quarterly Return, Monthly Payment for Small Taxpayers
QRMP lets small taxpayers file GSTR-1 and GSTR-3B just four times a year instead of twelve, while still paying tax monthly — a genuinely useful middle ground for businesses that outgrew composition but still find monthly return filing an operational drag.
Who is eligible
Registered persons with aggregate turnover up to ₹5 crore in the preceding financial year can opt for the QRMP (Quarterly Return, Monthly Payment) scheme. Unlike the Composition Scheme, QRMP does not restrict input tax credit or inter-state supply — it only changes the frequency of return filing, not the underlying tax treatment.
How it actually works
- GSTR-1 (outward supply details) and GSTR-3B (summary return with tax payment) are filed quarterly instead of monthly.
- Tax must still be paid monthly for the first two months of each quarter, via Form GST PMT-06, using one of two methods:
- Fixed Sum Method: pay 35% of the tax paid in cash in the previous quarter's GSTR-3B (or 100% of the previous month's cash payment if the taxpayer was on monthly filing before switching) — a system-generated challan makes this largely automatic.
- Self-Assessment Method: calculate actual tax liability for the month based on real sales and available ITC, and pay that exact amount.
- For the third month of the quarter, the actual liability is settled through the quarterly GSTR-3B itself, after adjusting for the two monthly payments already made.
Invoice Furnishing Facility (IFF)
Because GSTR-1 is only filed quarterly under QRMP, recipients of a QRMP taxpayer's supplies would otherwise have to wait a full quarter to see those invoices reflected for their own ITC claim. The IFF solves this: QRMP taxpayers can optionally upload B2B invoice details for the first two months of the quarter (up to a specified value ceiling) so recipients can claim ITC without waiting for the quarterly GSTR-1.
Opting in and out
The option to move in or out of QRMP can be exercised at the beginning of any quarter, on the GST portal, provided the eligibility turnover condition is met and any preceding return due has been filed. Once a quarter has started, the taxpayer generally cannot switch mid-quarter — the choice locks in for that quarter.
QRMP vs Composition — not the same trade-off
| Feature | QRMP | Composition Scheme |
|---|---|---|
| Turnover limit | Up to ₹5 crore | ₹1.5 crore (goods) / ₹50 lakh (services) |
| Input tax credit | Fully available, as normal | Not available |
| Inter-state supply | Permitted | Not permitted |
| Return frequency | Quarterly GSTR-1/3B, monthly tax payment | Quarterly CMP-08 payment, annual GSTR-4 |
QRMP is best understood as a filing-frequency relief for businesses that need to stay on the regular GST framework (ITC, inter-state supply) but want fewer return filings — not an alternative to composition for businesses that genuinely want simplified, ITC-free taxation.