QRMP scheme — GSTR-1 vs IFF, the quarterly cycle for ≤ ₹5 Cr
Businesses below ₹5 Cr aggregate turnover can opt out of monthly GSTR-1 and GSTR-3B into the QRMP scheme — quarterly returns, monthly tax payment, and the optional Invoice Furnishing Facility (IFF) for the first two months of each quarter. Sounds simpler. For most B2B suppliers, it isn't. Here's the operational map.
The QRMP mechanic
| Period | Filing | Due date |
|---|---|---|
| Month 1 of quarter (Apr / Jul / Oct / Jan) | IFF (optional, B2B only) + PMT-06 tax payment | 13th of next month + 25th for PMT-06 |
| Month 2 of quarter (May / Aug / Nov / Feb) | IFF (optional, B2B only) + PMT-06 tax payment | 13th of next month + 25th for PMT-06 |
| Month 3 of quarter (Jun / Sep / Dec / Mar) | GSTR-1 (all invoices for quarter) + GSTR-3B (consolidated) | 13th + 22nd / 24th of following month |
What IFF does
IFF (Invoice Furnishing Facility) lets you upload B2B invoices in months 1 and 2 of the quarter so your buyer can claim ITC without waiting for your quarterly GSTR-1. Without IFF, the buyer's GSTR-2B for those months would be empty for your invoices, and they couldn't claim provisional ITC.
Key features:
- Optional, not mandatory
- Only B2B invoices (not B2C)
- Cap of ₹50 lakh per month
- Whatever you upload via IFF in months 1-2 is auto-excluded from month-3 GSTR-1 (no duplication)
Monthly PMT-06 payment
Even though returns are quarterly, tax is still paid monthly via PMT-06. Two payment methods:
- Fixed-Sum Method: Pay 35% of net cash tax from the immediately preceding quarter (so for Q1: pay 35% of Q4 previous year's tax)
- Self-Assessment Method: Compute actual liability for the month, pay that
Either method is fine. Fixed-sum is easier (less monthly admin). Self-assessment is more accurate (avoids over-payment).
When QRMP works well
- You're a B2C business (retailer, restaurant) — buyers don't need ITC, so IFF irrelevant. Pure cash-flow win + quarterly admin saving
- You have stable, predictable cash flow — easy to plan monthly PMT-06 outflows
- You're below ₹5 Cr and want to reduce GST compliance overhead from 12 monthly cycles to 4 quarterly + 8 cash-only months
When QRMP works badly
- Your B2B customers complain about ITC timing — they need invoice in their GSTR-2B for the month of purchase. If you forget IFF or batch it, they lose ITC timing
- You have lumpy monthly outputs — irregular cash makes fixed-sum overpay or underpay; you'd need to switch to self-assessment which means monthly calculation anyway
- You have credit notes / amendments — they're easier to handle monthly than rolled into a quarterly aggregate
- Your tax-team / accountant prefers a steady monthly drumbeat — quarterly cycles spike work in month-3
Opting in / opting out — the quarterly window
You can switch between QRMP and monthly filing at the start of each quarter — but only via a Q1 / Q2 / Q3 / Q4 window. Default for new registrations: monthly (you must positively opt for QRMP).
Opt-in path: GST portal → Services → Returns → Opt-in for Quarterly Return → choose quarter. Default ahead-of-quarter notification given.
The B2B ITC trade-off — worked example
You're a QRMP supplier with a ₹6 lakh invoice issued on 15 April (Month 1 of Q1).
Scenario A: You do NOT use IFF. Invoice gets reported in GSTR-1 of Q1 (filed in July). Your B2B buyer first sees it in GSTR-2B of July. They wait 3 months to claim ITC. They may negotiate a 1-2% price reduction to compensate. Net: you save ₹0 on filings but lose ₹6-12K on price.
Scenario B: You DO use IFF. Invoice uploaded by 13 May. Buyer sees in May GSTR-2B. Claims ITC June month. Same timing as monthly filer. No price hit. Net: you save 8 months of GSTR-3B work, but still file IFF in 2 of 3 months — saving maybe 30% of effort vs monthly.
Late-fee structure under QRMP
Late filing penalty for QRMP is per-quarter, not per-month. So missing GSTR-3B of the quarter attracts ₹50/day under CGST + ₹50/day under SGST (₹20/day each for nil filer) until paid. The cap is ₹5,000 per Act for normal filers.
📌 The "buyer-side complaint" pattern: Most QRMP exits happen because a major B2B buyer complains about ITC timing. Before opting in, ask your top 3 customers if QRMP timing works for them. If any say no, stay monthly.
Composition vs QRMP — different scales
Don't confuse:
- Composition (Sec 10): turnover ≤ ₹1.5 Cr, fixed 1% / 5% / 6% rate, no ITC, very simplified
- QRMP: turnover ≤ ₹5 Cr, normal GST rates with ITC, quarterly returns + monthly payment
Composition is for the smallest. QRMP is for the small-to-medium range that still wants full GST mechanics.
The Finclar take
QRMP works neatly for B2C-heavy businesses below ₹3 Cr. For B2B-heavy businesses, the IFF requirement effectively recreates a monthly filing cycle for invoice purposes — so the only saving is GSTR-3B from 12 to 4 times a year, plus monthly cash via PMT-06 instead of monthly cash + return. The total time saved is real but modest (~50%). Worth it for some, not for others. Don't opt for QRMP just because it sounds simpler — model the IFF + PMT-06 workflow before switching.
Ishaq Aqeel · Team Member · GST · Audit · Tally Expert
Leads Finclar's GST and indirect-tax practice. Drafts 200+ notice responses a year for TN textiles, IT services and manufacturing clients. View full bio & archive →