GSTR-3B is a self-declaration return that every GST-registered taxpayer must file to report outward supplies, input tax credit (ITC), and tax payment. It’s a summary return and forms the backbone of GST compliance.
Depending on your turnover, you can file GSTR-3B either monthly or quarterly under the QRMP (Quarterly Return, Monthly Payment) scheme. But which option should you choose? Let’s break it down in simple terms.
Monthly Filing:
Mandatory for taxpayers with aggregate turnover above ₹5 crore in the preceding financial year.
Optional for others who prefer monthly compliance.
Quarterly Filing (QRMP):
Available for taxpayers with aggregate turnover up to ₹5 crore in the preceding financial year.
You pay tax every month (via challan), but file the return once in a quarter.
Pros:
Smooth ITC flow: Your vendors and customers see invoices uploaded sooner.
Better compliance rating with GST system.
Avoids last-minute quarterly rush.
Cons:
More frequent compliance burden (12 filings per year).
Higher cost if you rely on consultants.
Time-consuming for small businesses.
Pros:
Reduced filing frequency (only 4 returns per year).
Easier and cheaper for small businesses.
Flexibility to upload invoices monthly via IFF (Invoice Furnishing Facility).
Cons:
ITC visibility for your buyers may get delayed if you don’t use IFF.
Tax still needs to be paid monthly, so compliance is not entirely reduced.
Higher risk of interest if monthly payment is missed or delayed.
Whether monthly or quarterly, late filing of GSTR-3B attracts penalties:
Late Fee: ₹50 per day (₹20 per day for nil returns) subject to a maximum of ₹5,000.
Interest: 18% per annum on outstanding tax liability, calculated from due date till payment date.
Think of monthly filing like paying your phone bill every month — it keeps everything updated and smooth but needs regular effort.
Quarterly filing is like paying every three months — fewer filings, but you still need to recharge your account monthly to keep using the service (i.e., pay taxes).
| Feature | Monthly Filing | Quarterly Filing (QRMP) |
|---|---|---|
| Who can opt | Turnover > ₹5 crore (mandatory); optional for others | Turnover ≤ ₹5 crore (optional) |
| Return Frequency | 12 times a year | 4 times a year |
| Tax Payment | Monthly | Monthly (via challan) |
| Invoice Upload | Every month | Optional monthly via IFF; else quarterly |
| Best For | Large businesses, exporters, regular suppliers | Small businesses, MSMEs |
| Compliance Load | High | Moderate |
| Late Fees/Interest | Same | Same |
Large businesses (above ₹5 crore turnover): No choice, monthly filing is compulsory.
Small businesses (up to ₹5 crore): Can save effort by opting for quarterly filing under QRMP, but must still pay tax monthly.
Choose based on your business size, transaction volume, and compliance comfort.
👉 Tip from Team TAXAJ: If you have many B2B customers who need ITC regularly, monthly filing may help keep your customers happy. But if your business is mostly B2C with fewer invoices, quarterly filing can reduce your compliance burden.