QRMP Scheme Explained: How TaxBuddy Optimises Quarterly GST Filing for Small Businesses
- Rajesh Kumar Kar
- 1 day ago
- 9 min read
The QRMP scheme under GST allows eligible small businesses with a turnover up to ₹5 crores to file GSTR-3B quarterly while paying tax monthly, easing compliance without disrupting cash flow. Designed to reduce routine filing load, the scheme uses structured monthly payments through PMT-06 and optional IFF uploads to help buyers claim timely ITC. For many small businesses, QRMP becomes a practical way to stay compliant while focusing more on operations. Platforms such as TaxBuddy enhance this experience by automating calculations, due-date tracking, and reconciliation to minimise errors and delays.
Table of Contents
QRMP Scheme Overview
The QRMP scheme was introduced to reduce the monthly compliance load on small businesses registered under GST. It allows eligible taxpayers with an annual turnover of up to ₹5 crores to shift from monthly GSTR-3B filing to a quarterly schedule, while continuing to make monthly tax payments through PMT-06. This structure helps maintain cash flow stability without forcing businesses to file full returns every month. The scheme also includes the Invoice Furnishing Facility (IFF), which enables timely reporting of outward supplies and supports seamless Input Tax Credit claims for recipients.
Eligibility Criteria for the QRMP Scheme
QRMP eligibility is based primarily on the business’s aggregate turnover in the preceding financial year. Entities with turnover up to ₹5 crores may opt in, provided they do not fall under special restrictions such as non-filing defaults or ineligibility under specific GST compliance mandates. Regular filing behaviour, a valid GSTIN, and adherence to previous return timelines also influence the eligibility status. If turnover crosses the ₹5-crore threshold mid-year, the taxpayer may continue in the scheme until the end of that financial year.
How to Opt In for the QRMP Scheme on the GST Portal
The option to enrol opens during specific windows—beginning on the first day of the second month of the preceding quarter and ending on the last day of the first month of the current quarter. The GST portal provides a streamlined process: users log in, navigate to the Returns Dashboard, select the desired quarter, and choose the QRMP option. Once selected, the system updates the filing cycle to quarterly GSTR-3B with monthly PMT-06 payments. Any taxpayer may reselect or discontinue the scheme during the next opt-in window, ensuring flexibility based on business needs.
Monthly Payment Structure Under QRMP (PMT-06)
Under QRMP, monthly payments are made using Form PMT-06 for the first two months of each quarter. The scheme offers two payment options:
Fixed Sum Method (FSM): Under this method, the system auto-calculates 35% of the tax paid in the previous quarter if filed quarterly, or the actual tax paid in the previous month if filed monthly.
Self-Assessment Method (SAM): Businesses calculate their tax liability based on inward and outward supplies for the month. This option supports more accurate tax payments when turnover varies significantly.
Payments must be completed by the 25th of each month to avoid interest or compliance issues.
Invoice Furnishing Facility (IFF): How It Works
IFF enables quarterly filers to upload invoices for the first two months of the quarter without filing GSTR-1. This helps recipients claim timely Input Tax Credit as those invoices reflect in their GSTR-2A/2B. Businesses can upload invoices up to the permitted monthly threshold and finalise them before the due date. Although optional, IFF is especially useful for vendors supplying to businesses that rely heavily on consistent ITC availability.
Quarterly GSTR-3B Filing Process Explained
GSTR-3B under QRMP is filed once every quarter, consolidating the monthly payments made via PMT-06. The taxpayer reports outward supplies, ITC claimed, and final tax liability after adjusting monthly payments. The due dates differ by state grouping: the 22nd or 24th of the month following the quarter. The quarterly approach significantly reduces repetitive monthly data entry. However, accuracy in reconciliation remains essential to ensure that the PMT-06 payments align with the quarterly liability.
Common Errors in QRMP Compliance and How to Avoid Them
Several recurring mistakes continue to affect taxpayers who operate under the QRMP structure, often resulting in interest charges, delayed ITC reflection, and additional compliance stress.
One of the most common errors is missing the PMT-06 payment deadline for the first two months of the quarter. The payment must be completed by the 25th, and delays automatically attract interest. When multiple payments are missed, the interest compounds and creates a mismatch during quarterly reconciliation, increasing the risk of incorrect liability reporting in GSTR-3B.
Another frequent issue arises from choosing the Fixed Sum Method when business activity fluctuates significantly. Since FSM is based on the previous period’s tax liability, it may lead to overpayment during lean months or insufficient payment when turnover increases unexpectedly. Both situations complicate the reconciliation process and force taxpayers to make additional adjustments at the end of the quarter. Businesses with unpredictable monthly sales often benefit more from the Self-Assessment Method, which aligns payments with real-time activity.
Many QRMP filers also forget to upload invoices through the Invoice Furnishing Facility for the first two months. Although IFF is optional, skipping it delays the buyer’s Input Tax Credit because the invoices only appear when the quarterly GSTR-1 is filed. This delay in ITC reflection often pressures vendors to provide proof of invoice uploads, creating avoidable communication gaps and reconciliation issues for both sides.
Incorrect opt-in timing is another challenge for taxpayers unfamiliar with the enrolment window. Missing the selection period forces the taxpayer to continue monthly filing for the entire quarter, even when QRMP might have been more suitable. Once the window closes, no mid-quarter change is allowed, making timing essential for businesses aiming to streamline their compliance workload.
Quarterly reconciliation is often overlooked as well. Many taxpayers assume that monthly PMT-06 payments automatically settle liabilities, but differences between FSM estimates, SAM calculations, and actual tax liability must be reviewed carefully. Ignoring reconciliation may result in underpayment or excess payment in GSTR-3B, causing interest charges or locking unnecessary working capital.
These issues are usually easy to avoid with structured tracking, regular document reviews, and calendar-based reminders. Automated platforms like TaxBuddy simplify this further by offering timely alerts, matching invoice data with GST portal records, calculating monthly liability using the appropriate method, and highlighting inconsistencies before filing. Such tools ensure compliance stays accurate throughout the quarter, reducing manual errors and the risk of penalties.
How TaxBuddy Optimises Quarterly GST Filing for Small Businesses
TaxBuddy enhances QRMP compliance by automating monthly payment calculations, due-date alerts, and IFF uploads. Its system intelligently evaluates whether FSM or SAM is more efficient for a business based on transaction patterns and past liabilities. The platform synchronises with GST records to identify mismatches early, ensuring accurate reporting during quarterly GSTR-3B filing. Small businesses benefit from streamlined workflows, reduced manual effort, and improved accuracy. This makes TaxBuddy an effective digital partner in maintaining consistent GST compliance under the QRMP scheme.
QRMP vs Monthly Filing: Which Is Better for Small Businesses?
QRMP offers a simplified approach by reducing the frequency of full return filings, making it attractive for businesses with predictable turnover. Monthly filing, however, may be more suitable for entities with frequent ITC requirements or significant invoice volumes. QRMP reduces administrative load but requires disciplined monthly payments and invoice uploads. Monthly filing maintains more continuous documentation. The better choice depends on transaction volume, ITC dependency, and internal capability for compliance.
Impact of QRMP on ITC Claims and Vendor Compliance
QRMP affects the timing of ITC availability because quarterly filing delays outward supply reporting unless invoices are uploaded through IFF. Businesses relying heavily on ITC must coordinate with suppliers to ensure timely invoice uploads. Vendors using QRMP should leverage IFF to keep recipients’ ITC cycles uninterrupted. Failure to do so may cause mismatches or delays in credit reflection. Consistent use of IFF and structured reconciliation helps maintain smooth downstream compliance.
Cash Flow Management Under the QRMP Scheme
The QRMP model supports cash flow stability by allowing predictable monthly payments without demanding full monthly filing. The FSM approach offers simplicity when turnover is steady, while SAM helps businesses align payments with actual activity levels. By reducing administrative time and distributing tax payments evenly, QRMP enhances budget management, especially for small enterprises operating with limited resources. A structured cash flow plan combined with timely compliance ensures smooth operations throughout the quarter.
Conclusion
The QRMP scheme reduces the compliance load for small businesses by shifting from monthly to quarterly filing while still maintaining consistent monthly tax payments. It balances administrative ease with financial discipline, making GST compliance more manageable for smaller enterprises. Automated tools and expert support available through modern platforms such as TaxBuddy help reduce errors and ensure timely submissions across PMT-06, IFF, and GSTR-3B cycles. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers a dual approach to cater to different filing preferences. The self-filing option is supported by an AI engine that reads Form 16, consolidates financial data, and guides users through each section of the return with automated checks for common mismatches. This model is ideal for those seeking autonomy with structured assistance. In contrast, the expert-assisted plan involves human review, data validation, and correction of potential inaccuracies before submission. Together, these choices create a comprehensive filing ecosystem suited to individuals with simple or complex financial profiles.
Q2. Which is the best site to file ITR?
A dependable ITR filing platform should simplify data entry, reduce manual errors, and provide clarity during each step of the filing journey. Portals equipped with automated document reading, TDS reconciliation, real-time validation, and access to expert guidance consistently outperform traditional tools. TaxBuddy ranks among the most preferred options because it blends AI precision with professional oversight, ensuring accurate returns and a stress-free filing experience.
Q3. Where to file an income tax return?
Income tax returns may be filed either through the official Income Tax Department e-filing portal or through authorised third-party platforms designed to streamline the process. Modern solutions like TaxBuddy offer integrated features such as document auto-import, advanced error detection, and expert cross-checking, making them highly suitable for individuals seeking clarity and assurance during the filing process.
Q4. What is the turnover limit for opting into the QRMP scheme?
The QRMP scheme is available to businesses with an aggregate turnover of up to ₹5 crores in the preceding financial year. This threshold determines whether quarterly GSTR-3B filing with monthly tax payments is permitted. Once enrolled, a business may continue under the scheme for the entire financial year even if turnover exceeds the limit mid-year, though re-evaluation is required for the next financial period.
Q5. Can QRMP taxpayers upload invoices every month?
Yes. The Invoice Furnishing Facility (IFF) allows QRMP taxpayers to upload invoices for the first two months of each quarter. This mechanism ensures that recipients can claim Input Tax Credit without waiting for the quarterly GSTR-1. IFF is especially helpful for businesses dealing with customers who rely on timely ITC reflection in their compliance cycle.
Q6. What is the due date for PMT-06 under QRMP?
PMT-06 must be paid by the 25th of the month for the first two months of every quarter. These payments represent advance tax liability under either the Fixed Sum Method or the Self-Assessment Method. Timely payment ensures smooth reconciliation when filing the consolidated quarterly GSTR-3B.
Q7. Is IFF mandatory under the QRMP scheme?
IFF is optional. Taxpayers are free to skip monthly invoice uploads and report all outward supplies directly in the quarterly GSTR-1. However, businesses whose clients depend on uninterrupted ITC availability often choose IFF to avoid credit delays for their customers. Using IFF can also strengthen vendor relationships and reduce ITC-related queries.
Q8. How does QRMP impact ITC flow for buyers?
ITC availability for buyers depends on the timely reflection of supplier invoices in GSTR-2A or GSTR-2B. Under QRMP, if a supplier uploads invoices only in the quarterly GSTR-1, buyers may experience delayed ITC visibility. When suppliers use IFF during the first two months, the ITC shows up sooner, ensuring uninterrupted credit flow. Businesses that rely heavily on ITC generally prefer dealing with vendors who actively use IFF.
Q9. Can a taxpayer switch between QRMP and monthly filing?
Yes. Taxpayers may transition between QRMP and monthly filing, but only during specific opt-in windows at the start of each quarter. These windows allow businesses to reassess compliance needs—such as invoice volume, ITC dependency, and cash flow—and make adjustments accordingly. Outside the window, the selected scheme remains fixed for that quarter.
Q10. What happens if PMT-06 is not filed on time?
Missing the PMT-06 due date may trigger interest charges on the unpaid amount. Additionally, delayed payment can complicate the quarterly reconciliation process, making it harder to match liabilities during GSTR-3B filing. Chronic non-compliance may also affect eligibility for the QRMP scheme and create inconsistencies in the taxpayer’s compliance history.
Q11. Is QRMP suitable for high-volume businesses?
High-volume businesses often generate large numbers of invoices every month, making quarterly consolidation less practical. In such cases, monthly filing provides better rhythm and clarity for compliance tracking. The QRMP scheme is most effective for small and medium enterprises with moderate invoice volumes and predictable turnover patterns.
Q12. How does TaxBuddy support QRMP compliance?
TaxBuddy helps businesses manage QRMP requirements by automating monthly PMT-06 calculations, monitoring IFF deadlines, and ensuring clean reconciliation during quarterly GSTR-3B filing. Its system identifies mismatches early, calculates liability using the appropriate method, and tracks compliance checkpoints throughout the quarter. This reduces reliance on manual processes and ensures accuracy, making the QRMP workflow far more manageable for small businesses.
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