No GST Annual filing for taxpayers below Rs 2 Crores turnover
Posted on: 23/Sep/2019 2:07:45 PM
During the 37th meeting held at Goa, the GST Council provided relief to MSMEs by allowing them waiver to file GSTR 9 and GSTR-9A.
Subsequent to this important decision by the GST Council in the 37th meeting, announcing the relaxation in the filing of annual returns for MSMEs, a statement said that the waiver of the requirement of filing FORM GSTR-9A for Composition Taxpayers for the said tax periods will be provided for FY 2017-18 and FY 2018-19.
Further, the filing of FORM GSTR-9 for those taxpayers who (are required to file the said return but) have an aggregate turnover up to Rs. 2 crores made optional for the said tax periods.
In this regard, Abhishek Jain, Tax Partner, EY observed:
"The annual return compliance waiver till Rs 2 Crores turnover would be quite an aid from the ease of compliance perspective for small businesses. To recall, an annual return requirement historically under the VAT regime as well as exempt for businesses with a specified threshold and hence this proposal may be aligned to the pre-GST regime. Also, smaller businesses were looking for this relief because they had not maintained quite a lot of details which were required to be reported in the annual return; essentially owing to the suspension of GSTR-2."
A Committee of Officers is set to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.
Harpreet Singh, Partner, KPMG India, said:
"The Council’s decision to make an annual return (GSTR-9 and GSTR-9A) and audit report (GSTR-9C) optional for taxpayers with turnover up to Rs 2 crore, would certainly ease the compliance burden of small taxpayers. Further, assurance on further simplification of annual compliances should result in a reduction of compliance costs, as undertaking multiple reconciliations was proving to be complex and time-consuming”.
As the GST Appellate Tribunals are yet not functional, there is also an extension of the last date for filing of appeals against orders of Appellate Authority before the GST Appellate Tribunal.
In an effort to convince the taxpayers for timely filing of their returns, their statement of outward supplies, the imposition of restrictions on availing of the input tax credit by the recipients in cases where details of outward supplies are not furnished by the suppliers in the statement under section 37 of the CGST Act, 2017.
An important aspect of this announcement is that the new return system which was to be introduced from October 2019, will now be introduced from April 2020!
The statementnt said this is in order to give ample opportunity to taxpayers as well as the system to adapt and accordingly specifying the due date for furnishing of return in FORM GSTR-3B and details of outward supplies in FORM GSTR-1 for the period October 2019 - March 2020.
