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Microlesson · 5-min read

Quarterly Return Monthly Payment (QRMP) Scheme & IFF

# Quarterly Return Monthly Payment (QRMP) Scheme

## Purpose

Normally, regular taxpayers file monthly returns and pay tax monthly. To reduce compliance burden, the government allows certain small taxpayers to file GSTR-1 and GSTR-3B quarterly while still paying tax monthly.

## Eligibility

  • Registered person with aggregate turnover up to ₹ 5 crores in the preceding financial year
  • If aggregate turnover crosses ₹ 5 crores during the FY, person becomes ineligible from the next quarter
  • Scheme is voluntary, not mandatory
  • All returns for the previous period must be filed before opting in

## Opting In/Out

QRMP is available GSTIN-wise — a person with multiple GSTINs on the same PAN may opt for one GSTIN and not another.

Window: From 1st day of 2nd month of preceding quarter to last day of 1st month of relevant quarter.

  • Example: To opt QRMP for April-June quarter → can opt between 1st Feb to 30th April.

## Invoice Furnishing Facility (IFF)

Since QRMP filers upload GSTR-1 only quarterly, recipients face a delay in ITC. IFF solves this:

  • Supplier can upload monthly invoices for the 1st and 2nd month of each quarter
  • Maximum aggregate ₹ 50 lakhs per month
  • Upload due by 13th of the next month
  • Remaining invoices are uploaded in the quarterly GSTR-1

## Monthly Payment of Tax under QRMP

Timelines:

PeriodDue Date
1st and 2nd month of quarter25th of next month via Form GST PMT-06
Last (3rd) month of quarterDue date of filing quarterly GSTR-3B

## Methods of Computing Monthly Tax

### Method 1: Fixed Sum Method (Auto-populated Challan)

ScenarioAmount
Last return was filed quarterly35% of tax paid in cash in last return
Last return was filed monthly100% of tax paid in cash in return of last month of preceding quarter

Special situations where no payment needed:

  • 1st month: If balance in (cash + credit) ledger ≥ liability of 1st month
  • 2nd month: If balance in (cash + credit) ledger ≥ liability of 1st + 2nd months combined

Interest: No interest if tax paid is less than actual liability in 1st/2nd month (provided fixed sum is deposited). However, interest applies on any delay in filing GSTR-3B.

### Method 2: Self-Assessment Method

Registered person computes actual tax considering both outward and inward supply for the month. Interest u/s 50 applies on any unpaid/late-paid tax.

Worked example

### Example 1

Example 1 (Eligibility): Mr. P had aggregate turnover of ₹ 4.5 crores in FY 2024-25 → eligible for QRMP for FY 2025-26. If during Sep 2025 his turnover crosses ₹ 5 crores → ineligible from Oct-Dec 2025 quarter onwards.

### Example 2

Example 2 (Opting Window): To opt QRMP for July-September quarter → window is 1st May to 31st July.

### Example 3

Example 3 (Fixed Sum): Last quarterly return cash payment = ₹ 1,00,000. Monthly fixed sum for 1st and 2nd month of new quarter = 35% × ₹ 1,00,000 = ₹ 35,000 each month.

### Example 4

Example 4 (No payment needed): Liability for 1st month = ₹ 20,000. Cash + Credit ledger balance = ₹ 30,000. → No payment required for 1st month.

### Example 5

Example 5 (IFF): Supplier under QRMP can upload invoices worth ₹ 50 lakhs in April (1st month of Apr-Jun quarter) using IFF by 13th May. Remaining invoices uploaded in quarterly GSTR-1 by 13th July.

⚠️ Common exam mistakes

  • Computing turnover threshold for current FY instead of preceding FY
  • Forgetting that the IFF cap is per month (₹ 50 lakhs), not per quarter
  • Treating QRMP as PAN-wise — it is GSTIN-wise
  • Applying 35% rule when last return was monthly (then 100% rule applies)
  • Charging interest on shortfall in 1st/2nd month payment under fixed sum method (no interest if challan paid on time)
  • Missing the special 'no payment' situations when cash+credit balance covers liability
Reference: Rules 61A, 62 — CGST Rules, 2017
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