Government Exempts Small Businesses from Filing GSTR-9 Annual Return
GSTR-9 is the GST annual return for normal taxpayers under GST. The last date to file GSTR-9 is December 31st following the end of the relevant financial year. Each year, the government issues a separate notification to exempt small businesses with an annual aggregate turnover below ₹2 crore. For FY 2023-24, this exemption has been notified via Notification No. 14/2024 dated July 10, 2024.
So In a move aimed at easing the compliance burden on small businesses, the government has issued Notification No. 14/2024-Central Tax on July 10, 2024. This notification grants an exemption to registered persons with an aggregate turnover of up to two crore rupees in the financial year 2023-24 from filing GSTR-9, the GST Annual Return. This decision is expected to provide significant relief to numerous small business owners and streamline their compliance processes.
Notification No. 14/2024-Central Tax Details
The notification reads as follows:
G.S.R. 378(E): This notification exempts registered persons with an aggregate turnover of up to two crore rupees in the financial year 2023-24 from filing annual returns in Form GSTR-9.
Important to note:
Always keep in mind that GSTR-9 is the last chance to rectify any errors or omissions made in filing GST returns for a financial year. Even if the government has exempted you from filing GSTR-9, you should be careful and perform your reconciliation. If required, file GSTR-9 in case of mistakes, even if your turnover is below ₹2 crore. Otherwise, the auto-drafted GSTR-9 will be considered your final return.
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Understanding GSTR-9
GSTR-9 is the annual return form that all registered taxpayers under the Goods and Services Tax (GST) regime are required to file. This return consolidates the information furnished in the monthly or quarterly GSTR-1, GSTR-2A, GSTR-3B, and other relevant returns during the financial year. It provides a comprehensive summary of outward and inward supplies made or received under various tax heads.
Key Highlights of the Exemption
- Turnover Threshold:
- The exemption applies to businesses with an aggregate turnover of up to two crore rupees in the financial year 2023-24. This threshold is crucial as it targets small businesses that typically face greater challenges in managing compliance due to limited resources.
- Compliance Relief:
- By exempting these small businesses from filing GSTR-9, the government has significantly reduced their compliance burden. This measure acknowledges the administrative and financial challenges faced by small enterprises and aims to provide them with much-needed relief.
- Focus on Ease of Doing Business:
- This exemption is part of the government’s ongoing efforts to improve the ease of doing business in India. By simplifying the GST compliance process for small businesses, the government aims to create a more conducive environment for their growth and development.
Implications of the Exemption
- Administrative Ease:
- Small businesses can now avoid the time-consuming and complex process of compiling and filing the annual return. This saves valuable resources, allowing business owners to focus more on their core operations.
- Cost Savings:
- The exemption from filing GSTR-9 also translates to cost savings for small businesses. They can avoid expenses related to hiring tax professionals or investing in compliance software to manage the annual return filing process.
- Enhanced Compliance:
- While the exemption reduces the filing requirements, it encourages better compliance among small businesses by alleviating the burden of annual returns. This move is expected to result in a higher rate of compliance with other GST return filings.
The exemption from filing GSTR-9 for businesses with a turnover of up to two crore rupees in FY 2023-24, as per Notification No. 14/2024-Central Tax, is a welcome relief for small business owners. It reflects the government’s commitment to supporting small enterprises by reducing their compliance burden and simplifying GST procedures.
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