The Ultimate QRMP Scheme Filing Guide: Simplified GST Compliance for Small Businesses

Understanding the Core of the QRMP Scheme

For micro and small taxpayers in India, managing Goods and Services Tax (GST) compliance can often feel like navigating a complex maze of deadlines and forms. Recognizing this burden, the government introduced the Quarterly Return Monthly Payment (QRMP) Scheme. This initiative is a lifeline designed to simplify compliance, allowing eligible taxpayers to file their returns quarterly while making tax payments monthly. Our comprehensive QRMP scheme filing guide breaks down everything you need to know to leverage this beneficial structure.

The core philosophy behind QRMP is efficiency. By reducing the frequency of return filing from twelve times a year to just four, it significantly cuts down on administrative overhead, allowing small businesses to focus more on growth and less on paperwork. If your business turnover is modest, understanding and utilizing the QRMP scheme is essential for streamlined operations.

Who is Eligible for the QRMP Scheme?

Eligibility for the QRMP Scheme is primarily determined by the turnover of the registered person under GST. The criteria are straightforward:

• The registered person must be a regular taxpayer (not composition scheme).
• The aggregate annual turnover (PAN-based) must be up to Rs 5 crore in the preceding financial year.
• The taxpayer must have furnished GSTR-3B returns for the immediately preceding tax period before exercising the option.

Once selected, the scheme remains active unless the taxpayer voluntarily opts out or their aggregate turnover exceeds the Rs 5 crore limit. This threshold limit is crucial, and continuous monitoring of turnover ensures ongoing compliance.

The Mechanics of the QRMP Scheme Filing Guide: Quarterly Returns

While the returns (GSTR-1 and GSTR-3B) are filed quarterly, the process involves a critical monthly element: the Invoice Furnishing Facility (IFF) and the tax payment. This balance ensures that while the taxpayer gets relief from frequent filing, the recipient of their supplies does not suffer due to delayed Input Tax Credit (ITC).

What is Form GSTR-1 and GSTR-3B under QRMP?

Under the QRMP Scheme, GSTR-1 (Statement of Outward Supplies) and GSTR-3B (Summary Return) are filed once every quarter. The due dates are typically the 13th and 22nd/24th day following the end of the quarter, respectively.

GSTR-1 (Quarterly Filing)

This return encompasses all outward supplies made during the entire quarter. If you utilize the IFF (discussed below), only the invoices not uploaded monthly through IFF need to be included here, alongside B2C sales and other transactional details.

GSTR-3B (Quarterly Filing)

GSTR-3B is the consolidated summary return where the tax liability for the quarter is declared, ITC is claimed, and the final tax payment is offset against the monthly payments already made via PMT-06. Since the payment has already been made monthly, GSTR-3B acts as the reconciliation and final declaration tool.

As an expert content provider, we emphasize that consistent and timely GST Return Filing is paramount, even with the reduced frequency offered by QRMP. Failure to file quarterly returns can lead to late fees and disruptions in the recipient’s ITC chain.

Mastering the Invoice Furnishing Facility (IFF) under QRMP

The Invoice Furnishing Facility (IFF) is arguably the most innovative aspect of the QRMP Scheme. It addresses the concern that if a supplier files GSTR-1 only quarterly, the recipient (who depends on GSTR-1 data for their GSTR-2A/2B ITC) would have to wait three months to claim their credit.

The IFF allows QRMP taxpayers to optionally upload details of B2B outward supplies during the first two months of the quarter, up to a cumulative value of Rs 50 lakh per month. This monthly upload is crucial for ensuring the smooth flow of ITC.

IFF vs. Regular GSTR-1 Filing

It is vital to understand that IFF is not GSTR-1. It is a precursor. When you file your quarterly GSTR-1, the invoices already furnished via IFF are automatically populated and do not need to be uploaded again. IFF is optional, but highly recommended, especially when dealing with recipients who rely heavily on timely ITC claims.

“The true genius of the QRMP scheme lies in decoupling the frequency of payment from the frequency of return filing, optimizing cash flow management for small enterprises while maintaining the integrity of the ITC chain via the IFF.”

Monthly Payment Obligations: PMT-06 and Challan Generation

Although returns are filed quarterly, the liability must be discharged monthly using Form PMT-06. This ensures that the government receives revenue consistently and prevents large lump-sum payments at the end of the quarter. The deadline for this monthly tax payment is the 25th day of the following month.

Methods for Monthly Tax Payment

Taxpayers under this QRMP scheme filing guide have two primary methods for calculating and depositing the monthly tax liability:

Method 1: Fixed Sum Method (FSM)

This is the simplest method, ideal for businesses with stable turnover. The system automatically calculates the required amount based on past filings:

1. If the last filed return (GSTR-3B) was quarterly, the payment required is 35% of the net cash liability of the previous quarter.
2. If the last filed return (GSTR-3B) was monthly, the payment required is 100% of the net cash liability of the last monthly period.

The advantage of FSM is zero calculation effort; the system provides the amount directly in PMT-06.

Method 2: Self-Assessment Method (SAM)

Under this method, the taxpayer calculates their actual tax liability for the month, considering outward supplies and available ITC. This is preferred by businesses with fluctuating sales or those who want to maximize their use of ITC immediately. You must ensure that the calculation is accurate, as any shortfall will be settled during the quarterly GSTR-3B filing.

Step-by-Step QRMP Scheme Filing Guide

Implementing the QRMP Scheme involves specific steps, from selecting the option on the GST portal to executing the monthly payments and quarterly filings. Here is a practical walkthrough:

Key Benefits and Compliance Tips for the QRMP Scheme

While the administrative burden is significantly reduced, successful navigation of the QRMP framework requires diligence, especially regarding the monthly payment obligation. Mismanagement of the monthly tax deposit can lead to interest liability.

Maximizing Efficiency with QRMP

One of the major advantages is the reduction in filing frequency, which frees up critical resources. For MSMEs, time saved on compliance can be reinvested into growth. Furthermore, utilizing the IFF maintains good business relationships by ensuring customers face no delays in claiming ITC.

It is important for small businesses to also understand related compliance requirements, such as Udyam Registration benefits, which often complement the operational simplifications provided by schemes like QRMP.

Compliance Tips:

1. Reconciliation is Key: Always reconcile the monthly payments made (PMT-06) against the final liability declared in the quarterly GSTR-3B.
2. Choose the Right Payment Method: If your sales are highly seasonal, the Self-Assessment Method (SAM) might be more suitable than the Fixed Sum Method (FSM) to avoid overpaying tax initially.
3. Timely IFF Uploads: Treat IFF uploads as a monthly necessity, even though it is technically optional. This is crucial for seamless B2B transactions.

The flexibility offered by QRMP is a significant relief. According to the Central Board of Indirect Taxes and Customs (CBIC) guidelines, ensuring monthly payment prevents a cascading interest burden, even if the quarterly return filing date is delayed slightly. For official documentation on the scheme’s rules, always refer to the CBIC official website.

Important Considerations for the QRMP Scheme Filing Guide

While simplifying returns, QRMP does not simplify record-keeping. Taxpayers must maintain accurate records monthly to calculate the tax due for PMT-06, especially if opting for the Self-Assessment Method. Furthermore, if a taxpayer opts out or becomes ineligible (exceeds Rs 5 crore turnover), they must revert to monthly filing immediately from the next quarter.

Remember that the QRMP Scheme is available on a GSTIN-specific basis. If a taxpayer has multiple registrations under the same PAN, they can choose the scheme for some registrations and not for others, provided each meets the turnover criteria.

For the latest technical instructions and guidance on navigating the IFF and PMT-06 functionalities, the GST Portal remains the most authoritative source for procedural updates.

Conclusion

The QRMP scheme is a landmark measure providing significant relief to small GST taxpayers. By reducing the frequency of GSTR-1 and GSTR-3B filings to quarterly, and introducing the beneficial IFF, the government has successfully balanced ease of doing business with the need for continuous tax revenue and ITC flow. Utilizing this QRMP scheme filing guide ensures you not only meet your compliance obligations efficiently but also optimize your cash flow management. Mastering the distinction between monthly payment (PMT-06) and quarterly filing is the key to leveraging the full potential of this scheme and simplifying your overall GST journey.