Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme

Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme

Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme

The Central Board of Indirect Taxes and Customs (CBIC) had introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under the Goods and Services Tax (GST) for helping the small taxpayers whose turnover is below Rs.5 crores. This QRMP scheme has been started which allows the taxpayers to file GSTR-3B on a quarterly basis and pay taxes every month.

A registered individual who is required to file a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the previous financial year, is eligible to avail of the QRMP Scheme. The aggregate annual turnover for the previous financial year will be calculated in the common GSTN portal taking into consideration the details furnished in the returns through the taxpayer for the tax periods in the previous financial year.

This latest Scheme shall be effective from 1st January 2021. Furthermore, in the event that the aggregate turnover is beyond Rs 5 crore rupees during any quarter in the present financial year, the registered individual shall not be eligible for the Scheme from the next quarter.

This scheme is basically helpful and beneficial for small and middle-level businesses as well as traders who are GST registered individuals.

How an individual can exercise Option for QRMP Scheme?

A registered individual who is intending towards filing his GSTR-3B quarterly must specify the same on the GST portal, from the 1st of the second month of the previous quarter until the last day of the first month of the quarter for which such option has been exercised.

For instance, if a person wants to file quarterly returns for the quarter of January-March 2021, then the person must choose for quarterly filing on the common GST portal between 1st November 2020 and 31st January 2021.

Once the registered individual has chosen for quarterly filing, he is required to continue towards furnishing his return every quarter for all future tax periods, except in the following circumstances:

1.    If the taxpayer is not eligible for furnishing a quarterly return (for instance, if the aggregate turnover is beyond Rs.5 crore during a quarter, then from the next quarter the taxpayer shall not be able to file quarterly returns).

If the registered taxpayer opts towards furnishing GSTR-3B on a monthly basis.

2.    A registered individual would not be eligible to choose for furnishing quarterly returns if the last return, which was due on the date of exercising such an option was not been furnished.

For instance: If the individual is choosing for quarterly GSTR-3B filing on 1st December 2020, then the individual shall be required to furnish his GSTR-3B return for October 2020, which shall be the last return due on the date of exercising the quarterly filing option.

The benefits of the QRMP Scheme-

1.    The likelihood of mismatch of input credit in GSTR-2 would be reduced because of monthly IFF (Invoice Furnishing Facility). In the QRMP Scheme, GST Invoices would be uploaded in IFF on a monthly basis so that input credit show in GSTR 2A and GSTR 3B of concerned recipients.

2.    The probabilities of late Fees due to the non-filling of GSTR-3B shall be reduced. When an individual chooses the QRMP scheme, then the individual is required to file GSTR 3B on a quarterly basis. Presently, when an individual misses his monthly GSTR-3B he is required to pay a monthly return fine but when he chooses for the QRMP Scheme, he is then required to file 1 quarterly return so the return fine would be reduced.

3.    Probabilities of variation in invoices and input credit would drop because of the monthly invoice uploaded.

4.    The pressure of filling monthly GSTR 3B would also reduce. 

5.    It is an elective scheme. A registered individual could switch back towards the option of monthly return once he has chosen for the QRMP scheme.

The drawback of the QRMP scheme

1.    The workload for GST experts which includes accountants would increase due to IFF as well as the new tax payment methods.

2.    This scheme is hard to understand for a registered individual.


With the introduction of the QRMP scheme on 5th December 2020, the registered taxpayers up to Rs 5 crore turnover now has the option to file their GSTR-1 and GSTR-3B returns quarterly beginning the January-March period. The registered individuals could make the payment of GST by means of a challan each month either through self-assessment of monthly liability or 35% of net cash liability of previously filed GSTR-3B of the quarter. Also, the quarterly GSTR-1 and GSTR-3B could also be filed through an SMS.

Overall, QRMP is a good scheme for small as well as for middle GST registered individuals.

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eStartIndia Team

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