This circular provides detailed clarification on the Quarterly Return Monthly Payment (QRMP) Scheme introduced to ease compliance for small taxpayers. The scheme is applicable to registered persons having aggregate turnover up to ₹5 crore in the preceding financial year and is effective from 1 January 2021.

Eligible taxpayers can file FORM GSTR-3B on a quarterly basis while paying tax on a monthly basis for the first two months of the quarter. The option to avail or exit the scheme is available on the GST portal within prescribed time limits and is to be exercised GSTIN-wise. Certain taxpayers were also migrated by default into the scheme for the initial quarter based on their turnover and past filing behaviour.

Under the scheme, details of outward supplies are to be furnished quarterly in FORM GSTR-1. However, an optional Invoice Furnishing Facility (IFF) is provided for the first two months of the quarter to upload selected invoices (up to ₹50 lakh per month) so that recipients can avail input tax credit in time.

For monthly tax payment, taxpayers may choose either the Fixed Sum Method, based on a percentage of tax paid in the previous period, or the Self-Assessment Method based on actual liability. FORM GST PMT-06 is to be used for such payments. Interest and late fee provisions have been clarified, with relief provided where payments are made as per the prescribed timelines.