QRMP vs. Monthly GST Filing
A guide to the QRMP (Quarterly Return Monthly Payment) scheme for GST. Compare it with traditional monthly filings to see if it simplifies compliance for your small business.
Key Differences
| Aspect | Monthly Scheme | QRMP Scheme |
|---|---|---|
| Eligibility | All Taxpayers | Turnover up to ₹5 Crore |
| GSTR-1 & 3B Filing | Monthly | Quarterly |
| Tax Payment | Monthly | Monthly |
| <a href="/startup-finance-glossary/what-is-input-tax-credit">ITC</a> for Buyers | Monthly | Quarterly (or Monthly via IFF) |
Pros & Cons of Monthly Filing Scheme
Real-Time Compliance: Your compliance is always up-to-date.
Faster ITC for Buyers: Your B2B customers can see invoices in their GSTR-2B every month, allowing them to claim <a href="/startup-finance-glossary/what-is-input-tax-credit">ITC</a> faster.
Simpler for High Volume: For businesses with many transactions, a monthly rhythm can be easier to manage than a quarterly pile-up.
Standard for Large Businesses: The default for businesses with turnover > ₹5 Crore.
Higher Compliance Burden: Requires filing GSTR-1 and GSTR-3B every single month.
More Frequent Effort: Requires more time from your accounting team each month.
Pros & Cons of QRMP Scheme
Reduced Filing Frequency: You only need to file your GSTR-1 and GSTR-3B once per quarter.
Less Compliance Overhead: Can reduce the time and cost associated with monthly filings for small businesses.
Optional IFF: You can still upload B2B invoices monthly using the Invoice Furnishing Facility (IFF) so your customers can get ITC.
Monthly Tax Payment Still Required: You still have to calculate and pay your tax liability every month.
Risk of Compounded Errors: An error made in the first month of a quarter might not be caught until the end, making corrections more complex.
Potential for Delayed ITC: If you don't use the IFF, your B2B customers have to wait until the end of the quarter to get their input tax credit.
Cost Analysis
The QRMP scheme can slightly reduce professional fees for compliance, as the number of returns filed is lower. However, the work of monthly tax calculation and payment remains, so the cost savings may not be substantial.
When to Choose Which
Choose the Monthly Filing Scheme if you are a B2B business where providing prompt ITC to your customers is important, or if you prefer a regular, monthly compliance rhythm.
Choose the QRMP Scheme if you are a small, primarily B2C business with a turnover under ₹5 Crore and want to reduce your filing frequency. It is designed to ease the compliance burden for small taxpayers.
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