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GST

GST Annual filing waived off for taxpayers below Rs 2 cr turnover

ET Online|
Updated: Sep 23, 2019, 10.01 AM IST
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In another significant announcement, the new return system which was to be introduced from October 2019, will now be introduced from April, 2020.

Highlights

  • A Committee of Officers to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.
  • There is also an extension of last date for filing of appeals against orders of Appellate Authority before the GST Appellate Tribunal as the Appellate Tribunals are yet not functional.
  • In another significant announcement, the new return system which was to be introduced from October 2019, will now be introduced from April, 2020.

The GST Council, in its 37th meeting held at Goa provided relief to MSMEs by allowing them waiver to file GSTR 9 and GSTR-9A.

Announcing the relaxation in filing of annual returns for MSMEs for FY 2017-18 and FY 2018-19, a statement said waiver of the requirement of filing FORM GSTR-9A for Composition Taxpayers for the said tax periods will be provided.

Additionally, filing of FORM GSTR-9 for those taxpayers who (are required to file the said return but) have aggregate turnover up to Rs. 2 crore made optional for the said tax periods.

Abhishek Jain, Tax Partner, EY said, "The annual return compliance waiver till Rs 2 crore turnover would be quite an aid from an ease of compliance perspective for small businesses. To recall, an annual return requirement historically under the VAT regime as well was 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 to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.

"The Council’s decision to make 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 reduction of compliance costs, as undertaking multiple reconciliations was proving to be complex and time consuming.” said Harpreet Singh, Partner, KPMG India.

There is also an extension of last date for filing of appeals against orders of Appellate Authority before the GST Appellate Tribunal as the Appellate Tribunals are yet not functional.

In order to nudge taxpayers to timely file their statement of outward supplies, imposition of restrictions on availment of 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.

In another significant announcement, the new return system which was to be introduced from October 2019, will now be introduced from April, 2020. The statement 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.

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