GST Regular Scheme vs. GST QRMP Scheme: A Complete Guide for Tax Professionals, Business Owners, and CA Students

Goods and Services Tax (GST) has revolutionized indirect taxation in India, simplifying multiple tax structures into one comprehensive system. However, with simplification came compliance. To cater to different sizes and categories of taxpayers, the government introduced schemes like GST Regular and GST QRMP (Quarterly Return Monthly Payment).

This blog aims to provide a detailed comparison between the GST Regular Scheme and the QRMP Scheme, covering their features, compliance requirements, suitability, and advantages.

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🔍 What is the GST Regular Scheme?

Under the Regular Scheme, taxpayers are required to:

• File GSTR-1 (outward supplies) monthly

• File GSTR-3B (summary return with tax payment) monthly

• Pay taxes monthly

• Avail Input Tax Credit (ITC) seamlessly

• Maintain high compliance and real-time reconciliations

📌 Who Should opt for Regular Scheme?

• Businesses with aggregate turnover exceeding ₹5 crores in the previous financial year (mandatory).

• Businesses with turnover less than ₹5 crores but who prefer monthly ITC flow and compliance.

• Taxpayers dealing with B2B clients requiring monthly invoice uploads.

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🔍 What is the GST QRMP Scheme?

Introduced from January 2021, the QRMP (Quarterly Return Monthly Payment) Scheme is designed for small taxpayers to reduce compliance burden.

✅ Key Features:

• File GSTR-1 and GSTR-3B quarterly

• Pay tax monthly using PMT-06

• Option to upload invoices monthly through IFF (Invoice Furnishing Facility)

• Auto-generated challans available

• Reduced number of returns from 24 to 8 annually

📌 Eligibility for QRMP Scheme:

• Aggregate annual turnover up to ₹5 crores

• Automatically applied if eligible unless opted out

• Can be opted in or out quarterly

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🧾 Tax Payment in QRMP

Even though returns are filed quarterly, taxes are to be paid monthly using:

1. Fixed Sum Method (FSM):

   • 35% of last quarter’s tax (for monthly filers)

   • 100% of last month’s tax (for quarterly filers)

2. Self-Assessment Method (SAM):

   • Calculate actual tax liability on sales + ITC

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📝 Return Filing Comparison Table

Feature	GST Regular Scheme	GST QRMP Scheme
Eligibility	Mandatory for turnover > ₹5cr	Optional for turnover ≤ ₹5 Cr
GSTR-1	Monthly	Quarterly (with optional monthly IFF)
GSTR-3B	Monthly	Quarterly
Tax Payment	Monthly with return	Monthly via PMT-06
Number of GSTR Filings per Year	24	8
Invoice Upload for B2B	Monthly	Monthly via IFF or quarterly
ITC Flow to Recipient	Faster	May be delayed if IFF not used
Best For	Large businesses, export firms	MSMEs, small service providers

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🎯 Pros and Cons

✅ GST Regular Scheme:

Advantages:

• Timely ITC availability to buyers

• Real-time tax planning

• Strong compliance for larger businesses

Disadvantages:

• Higher compliance cost

• More manpower or automation needed

✅ GST QRMP Scheme:

Advantages:

• Lower compliance burden

• Suitable for seasonal or low-volume taxpayers

• Simplified tax payment methods

Disadvantages:

• Delayed ITC reflection if IFF not used

• Complex for businesses with fluctuating monthly sales

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💡 Practical Examples:

📍Example 1:

A proprietorship firm with ₹3.5 crore turnover supplying mostly to B2C customers may prefer QRMP to reduce filings.

📍Example 2:

A manufacturer supplying to large distributors requiring monthly ITC may prefer the Regular Scheme even under ₹5 crore turnover.

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📚 Notes for CA Students:

• Understand the impact of QRMP on 2A/2B reconciliation.

• Learn how PMT-06 challans are handled under both tax methods.

• Practice advisory by suggesting suitable schemes to clients based on turnover and business type.

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✅ Conclusion

The decision between GST Regular and QRMP Scheme depends on business turnover, nature of clientele, internal accounting setup, and tax strategy. While the Regular Scheme provides speed and control, the QRMP Scheme offers simplicity and ease for small businesses.

✅ As a tax professional or CA student, guiding clients with a practical approach tailored to their business needs is key to successful GST compliance.

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📌 Stay Updated

Always refer to the latest notifications on the official GST portal as rules and thresholds are subject to change by the CBIC.

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💬 Have Questions?

If you’re a business owner confused about the right GST scheme, or a CA student looking to understand practical filing scenarios — feel free to drop your questions in the comments.

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