The Government of India introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under the Goods and Services Tax (GST) framework to simplify the return filing process for small taxpayers. This scheme is beneficial for businesses with a turnover of up to Rs 5 crore, allowing them to file returns quarterly instead of monthly while still making monthly tax payments. It reduces compliance efforts without compromising on timely tax collection.
Let’s explore the key aspects of the QRMP scheme, including eligibility, tax payment structure, return filing procedures, benefits, challenges, and more.
What is the QRMP Scheme?
The QRMP scheme allows eligible taxpayers to:
● File GSTR-3B and GSTR-1 returns quarterly
● Pay GST on a monthly basis through a simple challan (Form GST PMT-06)
The objective is to ease the compliance burden and improve ease of doing business, especially for MSMEs.
Who Can Opt for QRMP Scheme?
A taxpayer can opt for the QRMP scheme if:
● The aggregate annual turnover during the previous financial year is up to Rs 5 crore
● The taxpayer has filed the last return (GSTR-3B) within the due date
● The taxpayer is registered as a regular taxpayer (composition taxpayers are not eligible)
● The scheme must be opted GSTIN-wise, so businesses with multiple GSTINs need to opt in separately for each
Taxpayers can choose the scheme at the beginning of any quarter, with a window to opt-in or opt-out during the first month of the quarter.
How Return Filing Works under QRMP
Under QRMP, the following returns are filed:
- GSTR-1 (Quarterly):
Details of outward supplies (sales) are filed every quarter. This includes all B2B, B2C, exports, and credit/debit note details.
- GSTR-3B (Quarterly):
Summary returns with tax liability are also filed every quarter. This is the main return to declare total input tax credit (ITC), output tax liability, and make the final payment.
- Invoice Furnishing Facility (IFF):
To ensure buyers can claim ITC in real time, taxpayers may use the optional IFF to upload B2B invoice details for the first two months of the quarter. The limit is Rs 50 lakh per month, and the IFF must be submitted by the 13th of the succeeding month.
Example: In the April–June quarter, the IFF can be filed for April month by 13th May and for May by 13th June.
Monthly Tax Payment Structure
Although returns are filed quarterly, taxes are paid monthly using Form GST PMT-06. Two methods are available:
- Fixed Sum Method (FSM):
○ Pre-filled challan generated by the system
○ 35% of the tax paid in cash in the previous quarter (if filed quarterly) or 100% of last month’s tax (if filed monthly)
○ Ideal for businesses with consistent turnover and tax liability
- Self-Assessment Method (SAM):
○ Taxpayer calculates actual liability based on sales, purchases, and ITC
○ Requires reviewing the auto-generated Form GSTR-2B for available ITC
○ Suitable for businesses with fluctuating sales or ITC
Taxes for the first two months must be paid by the 25th of the succeeding month.
Example: For the April–June quarter:
● April tax, Pay by 25th May
● May tax, Pay by 25th June
● June tax, Pay while filing GSTR-3B by July 22/24
Due Dates under QRMP Scheme
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Return Type
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Due Date
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GSTR-1
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13th of month after the quarter ends
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GSTR-3B
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22nd/24th of month after the quarter ends (based on state)
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PMT-06 (Tax Payment)
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25th of each month for first two months of the quarter
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Late Fees and Interest
If returns or payments are delayed, the following penalties apply:
● Late fee for GSTR-3B or GSTR-1:
○ Rs 50 per day (Rs 25 CGST + Rs 25 SGST)
○ Rs 20 per day for Nil returns
○ Capped at Rs 5,000 per return
● Interest:
○ 18% per annum on unpaid tax
○ Calculated from the due date to actual payment date
However, if the taxpayer pays estimated tax under FSM, no interest is charged on the shortfall if the shortfall is paid in the final GSTR-3B.
Conclusion
The QRMP scheme is a well-designed initiative by the government to reduce the compliance burden for small and medium businesses under GST. By allowing quarterly filing with monthly tax payments, it provides the best of both world’s compliance simplicity and regular tax inflow for the government.