GST Return Filing: Monthly vs Quarterly (QRMP Scheme Explained)

Should you file GST returns monthly or quarterly? The QRMP (Quarterly Return Monthly Payment) scheme was introduced to reduce compliance burden for small taxpayers — but it comes with its own set of rules around IFF filing, PMT-06 payments, and ITC availability.

This guide helps you decide which option is better for your business and explains the mechanics of both.

QRMP Scheme Overview

How to Opt Into QRMP

1. Login to GST portal → Services → Returns → Opt-in for QRMP
2. Select the quarter from which you want to start quarterly filing
3. You must opt-in during the first month of the quarter (Jan/Apr/Jul/Oct)
4. Once opted, it continues until you opt out or cross ₹5 Cr turnover

PMT-06: Monthly Tax Payment

Even though GSTR-3B is quarterly, you must pay tax monthly in the first two months (M1 & M2) using PMT-06. Two methods:

Method 1: Fixed Sum (35% Rule)

• Pay 35% of the tax paid in the previous quarter's GSTR-3B
• Simple — no calculation needed
• Risk: If actual liability is higher, interest applies on the shortfall

Method 2: Self-Assessment (Actual)

• Calculate actual tax liability for the month
• Pay the exact amount due
• More accurate but requires monthly bookkeeping

Due date: 25th of the month following M1/M2.

IFF — Invoice Furnishing Facility

IFF allows QRMP taxpayers to upload B2B invoices monthly (for M1 and M2) even though GSTR-1 is quarterly. Why use it?

• Your B2B buyers can claim ITC immediately (instead of waiting for your quarterly GSTR-1)
• Invoices uploaded in IFF appear in buyer's GSTR-2B that month
• IFF is optional — but strongly recommended for businesses with large B2B customers
• Limit: Total invoice value in IFF ≤ ₹50 lakh per month
• Due date: 13th of the following month (same as monthly GSTR-1 due date minus 2 days)

Which Option Should You Choose?

Choose QRMP if:

• Your turnover is well below ₹5 Cr
• Most of your sales are B2C (no one waiting for your GSTR-1 for ITC)
• You want reduced compliance effort (4 GSTR-1 + 4 GSTR-3B = 8 filings/year vs 24)
• Your tax liability is predictable month-to-month

Choose Monthly if:

• You have significant B2B sales — your buyers need timely ITC
• Your ITC fluctuates significantly (PMT-06 35% method may overpay/underpay)
• You're approaching ₹5 Cr turnover (avoid forced mid-year switch)
• You have a CA or accounting software handling compliance anyway

Impact on Your Buyers' ITC

This is the most important consideration. Under QRMP:

• If you don't use IFF: Your B2B invoices only appear in buyers' GSTR-2B after you file quarterly GSTR-1 (up to 3+ months delay)
• If you use IFF monthly: Invoices appear in buyers' GSTR-2B within the same month, just like monthly filers

Pro tip: If your buyer is a large company doing monthly reconciliation, not using IFF can strain the relationship. They may demand you switch to monthly or stop buying from you.

Transition Rules

• Switching from monthly to QRMP: Opt-in by the last day of M1 of the quarter
• Switching from QRMP to monthly: Same opt-out deadline
• Crossing ₹5 Cr mid-year: You're automatically switched to monthly from the next quarter
• New registration: Default is monthly; opt into QRMP from the first available quarter