GST Returns — GSTR-1, GSTR-3B, GSTR-4 & the QRMP Scheme

Filing returns is the recurring heartbeat of GST compliance. Different taxpayers file different returns, at different frequencies, and missing a due date has real financial consequences. This guide maps out the main returns, who files what, and how the QRMP scheme can lighten the load for smaller businesses.

GSTR-1 — Outward Supply Details

GSTR-1 captures details of all outward supplies (sales) made during the period — invoice-wise for B2B transactions, and consolidated for most B2C transactions (with invoice-wise detail required for large-value inter-state B2C supplies).

It is filed monthly (by the 11th of the following month) by regular taxpayers, or quarterly under the QRMP scheme (by the 13th of the month following the quarter) for eligible small taxpayers who have opted in.

GSTR-3B — Summary Return & Tax Payment

GSTR-3B is a self-assessed summary return where the taxpayer declares total outward supplies, ITC claimed (largely auto-populated from GSTR-2B), tax payable, and pays the net tax due.

It is filed monthly (by the 20th of the following month) for regular taxpayers, or quarterly under QRMP (by the 22nd or 24th of the month after the quarter, depending on the taxpayer's state), with monthly tax payment via a simplified challan (Form PMT-06) for the first two months of each quarter under QRMP.

The QRMP Scheme

The Quarterly Return Monthly Payment (QRMP) scheme is an optional facility available to registered persons with aggregate turnover up to ₹5 crore in the preceding financial year. It allows them to file GSTR-1 and GSTR-3B quarterly, while still paying tax monthly through PMT-06 (using either actual liability or a fixed-sum method based on the last quarter's payment), reducing the return-filing frequency without deferring the government's cash flow significantly.

•      Invoice Furnishing Facility (IFF): an optional monthly facility under QRMP that lets a taxpayer upload B2B invoices for the first two months of the quarter, so their buyers can claim ITC without waiting for the quarterly GSTR-1

GSTR-4 and CMP-08 — For Composition Dealers

Composition taxpayers, instead of the monthly GSTR-1/GSTR-3B cycle, file a quarterly statement-cum-challan in Form CMP-08 (for paying tax on a self-assessed basis) and an annual return in Form GSTR-4 (summarising the full year's turnover and tax paid), reflecting the simplified compliance structure of the scheme.

Other Notable Returns

•      GSTR-5: for non-resident taxable persons

•      GSTR-6: for Input Service Distributors, to distribute ITC to their branches

•      GSTR-7: for persons required to deduct TDS under GST

•      GSTR-8: for e-commerce operators required to collect TCS

•      GSTR-9 and GSTR-9C: the annual return and reconciliation statement (covered in detail separately)

Late Fee & Interest

•      Late fee: generally ₹50 per day (₹25 CGST + ₹25 SGST) for a regular return with tax liability, and ₹20 per day (₹10 + ₹10) for a nil return, subject to prescribed maximum caps linked to turnover

•      Interest: 18% per annum on tax paid late, calculated on the net cash tax liability from the original due date until the date of actual payment

💡  Illustration — Monthly vs QRMP Filing

A regular taxpayer with ₹8 crore turnover must file GSTR-1 by the 11th of the following month, declaring all sales invoices, and then file GSTR-3B by the 20th, declaring the summary of sales, ITC, and paying the net GST due — every single month. A smaller business with ₹3 crore turnover, having opted for QRMP, instead files both GSTR-1 and GSTR-3B just once a quarter, while still paying an estimated monthly tax amount via PMT-06 for the first two months of each quarter.

💡  Illustration — Late Filing Consequences

A business with a net GST liability of ₹50,000 for a month misses its GSTR-3B due date by 10 days. It owes a late fee of ₹500 (₹50/day × 10 days) plus interest at 18% per annum on the ₹50,000 for those 10 days — working out to roughly ₹247 in interest, in addition to the late fee, purely for a 10-day delay.

⚠  Common Mistakes to Avoid

•  Filing GSTR-3B based on internal books instead of reconciling ITC against GSTR-2B first, leading to over- or under-claimed credit

•  Missing the IFF window under QRMP, causing buyers' ITC claims to be delayed until the quarterly GSTR-1 is filed

•  Treating QRMP as a way to defer tax payment entirely — monthly tax payment via PMT-06 is still mandatory even though returns are quarterly

•  Filing a composition dealer's GSTR-4 late, triggering late fees that can feel disproportionate given the scheme's otherwise low compliance burden

Frequently Asked Questions

Q1. What is GSTR-2B and how is it different from GSTR-1?

A. GSTR-1 is what you file to report your own sales. GSTR-2B is an auto-drafted, static statement generated for you, showing the ITC available based on your suppliers' GSTR-1 filings for that period — it's your ITC 'source of truth' each month, generated on a fixed date regardless of later changes by suppliers.

Q2. Can I file GSTR-3B without first filing GSTR-1?

A. No, sequential filing is generally enforced — GSTR-3B relies on outward supply data, and the system requires GSTR-1 (or the IFF, for QRMP filers) to be filed before GSTR-3B for the same period.

Q3. Who is eligible for the QRMP scheme?

A. Registered persons with aggregate turnover up to ₹5 crore in the preceding financial year can opt in at the start of a quarter, and can opt out anytime before the start of a new quarter if they prefer monthly filing instead.

Q4. Do I still need to pay tax monthly even under QRMP?

A. Yes — QRMP reduces return filing frequency, not payment frequency; tax for the first two months of each quarter must still be paid monthly via Form PMT-06.

Q5. What happens if I file a 'nil' GSTR-3B or GSTR-1 late?

A. A reduced late fee of ₹20 per day (₹10 CGST + ₹10 SGST) applies for nil returns, compared to ₹50 per day for returns with actual tax liability, though both are still subject to prescribed maximum caps.

Q6. Is there a separate return for e-commerce operators?

A. Yes, e-commerce operators required to collect TCS must file GSTR-8, reporting details of supplies made through their platform and the TCS collected on those supplies.

✓  Key Takeaways

•  GSTR-1 (outward supplies) and GSTR-3B (summary + tax payment) form the core monthly/quarterly compliance cycle for regular taxpayers

•  The QRMP scheme (turnover up to ₹5 crore) allows quarterly return filing with monthly tax payment via PMT-06

•  Composition dealers file CMP-08 quarterly and GSTR-4 annually instead

•  Late filing triggers both a per-day late fee and 18% p.a. interest on unpaid tax — both accrue quickly even for short delays

Note: GST rates, thresholds and procedures are revised periodically by the GST Council and CBIC. This article reflects the position understood as of the GST 2.0 rate structure (effective 22 September 2025). Please verify current figures on www.gst.gov.in or with a qualified tax professional before making compliance decisions.

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.