In a move to ease the compliance burden on small businesses, the Central Board of Indirect Taxes and Customs (CBIC) has exempted businesses with an annual turnover of up to Rs 2 crore from filing the GSTR-9 form for the financial year 2023-24. The notification reads: "In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby exempts the registered person whose aggregate turnover in the financial year 2023-24 is up to two crore rupees, from filing annual return for the said financial year."
Understanding GSTR-9
GSTR-9 is an annual return form that must be filed by individuals registered as normal taxpayers, including Special Economic Zone (SEZ) units or developers. It requires the taxpayer to provide detailed information regarding purchases, sales, input tax credit, refund claims, and any tax demands. It is also mandatory for taxpayers who transitioned from the composition scheme to the regular taxpayer category during the financial year.
Who is Exempt from Filing GSTR-9 for FY 2023-24?
According to the CBIC's notification (No. 14/2024–Central Tax), the following taxpayers are exempt from filing GSTR-9 if their aggregate turnover is up to Rs 2 crore for FY 2023-24:
- Regular taxpayers with turnover up to Rs 2 crore
However, the exemption does not apply to:
- Composition Scheme Dealers (file GSTR-4 annually)
- Casual Taxable Persons (no fixed place of business)
- Non-Resident Taxable Persons (separate filing requirements)
- Input Service Distributors (ISD) (distribute input service credit)
- Persons Required to Deduct/Collect Tax at Source (TDS/TCS)
How to File GSTR-9 Annual Return
For those required to file the GSTR-9, it can be done online or offline:
- Online: Go to 'Services' > 'Returns' > 'Annual Return' and select Form GSTR-9.
- Offline: Download the offline tool from the GST portal.
Additional Considerations
- Cancelled GST Registration: Even if a taxpayer's registration was cancelled during the year, the annual return must be filed.
- Opting out of the Composition Scheme: Taxpayers who opted out of the composition scheme during the financial year must file Form GSTR-9 for the period they were under normal tax rates.
- Nil GST Annual Return: A nil GSTR-9 can be filed if there were no transactions, credits, or refund claims during the year.
Benefits of the Exemption
This exemption aims to reduce the regulatory burden on small businesses, allowing them to focus more on their core activities. It also helps in cost savings by reducing expenses associated with return preparation and filing. Simplifying the GST regime, this measure supports the growth and sustainability of small enterprises by easing compliance requirements.
Potential Risks
While the exemption provides significant relief, there is a risk that reduced compliance could lead to under-reporting or tax evasion. However, the measure seeks to balance easing compliance with maintaining tax discipline.
By providing this exemption, the CBIC underscores its commitment to fostering a more business-friendly environment and supporting the economic stability of small businesses.
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