Annual return limit

whst is exemption limit for Annual return
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Quick Summary
The exemption limit for filing annual returns varies depending on the specific act and entity type. For instance, small companies and certain individuals may be exempt from filing under the Companies Act and Income-tax Act respectively. Under GST, taxpayers with turnover below ₹2 crore are generally exempt from filing GSTR-9, though it's recommended for compliance. For FY 2025-26, GSTR-9 is mandatory for turnovers exceeding ₹2 crore.

The exemption limit for Annual Return varies depending on the type of entity and the Act governing it.

Here are some common exemption limits: - Under the Companies Act, 2013: -

 Small companies (turnover < ₹2 cr): exempt from filing annual return (Form MGT-7) - Private companies (turnover < ₹100 cr): can file a simplified annual return (Form MGT-7A) - Under the Income-tax Act, 1961:

- Individuals (income < ₹2.5 lakh): exempt from filing income tax return (ITR) -

Hindu Undivided Families (HUFs) and Association of Persons (AOPs) (income < ₹2.5 lakh): exempt from filing ITR -

Under the Goods and Services Tax (GST) Act: - Taxpayers with turnover < ₹2 cr: exempt from filing annual return (Form GSTR-9) -

 Taxpayers with turnover < ₹5 cr: can file a simplified annual return (Form GSTR-9A)

Please note that these exemption limits are subject to change, and additional conditions may apply.

For FY 2025-26 (due December 31, 2026), GSTR-9 is mandatory if your aggregate turnover exceeds Rs. 2 crore. Below that threshold, it is optional but filing is still recommended to keep your compliance record clean.

A few things to distinguish:
- Turnover below Rs. 2 crore: GSTR-9 is optional, you can skip it without penalty
- Turnover between Rs. 2 crore and Rs. 5 crore: GSTR-9 is mandatory, GSTR-9C (reconciliation statement) is not required
- Turnover above Rs. 5 crore: both GSTR-9 and GSTR-9C (certified by a CA or CMA) are mandatory
- Composition dealers: file GSTR-9A or GSTR-4 (annual return on composition scheme), not the regular GSTR-9

The annual return consolidates your GSTR-1 and GSTR-3B data for the full year, so reconcile your monthly returns before filing to avoid mismatches that trigger scrutiny notices.

This [guide to types of GST returns](https://taxgarden.in/blog/types-of-gst-returns-india-2026) covers GSTR-9, GSTR-9C and GSTR-9A applicability with turnover thresholds.

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