Relief from GST annual return filing for these taxpayers; Know its impact
Sep 23, 2025
Synopsis
Small businesses with turnover up to Rs 2 crore are exempt from filing GST annual returns starting FY 2024-25, offering relief from compliance burdens and associated costs. While simplifying processes, this exemption removes an opportunity for taxpayers to self-correct errors from monthly/quarterly filings. A new table introduced in GSTR-9 aims to improve clarity and transparency in input tax credit claims.
On September 17, 2025, the government announced an exemption for certain small businesses and professionals, allowing them full exemption from filing Goods and Services Tax (GST) annual return, which is due on December 31, 2025 for FY 2024-25.
This is a significant positive development for the specified GST registered businesses and professionals as it could help them avoid extra costs associated with filing a GST annual return.
The Notification dated September 17, 2025 said: “In exercise of the powers conferred by the first proviso to sub-section (1) of Section 44 of the Central Goods and Services Tax Act, 2017 (12 or 2017), the Commissioner, on the recommendation of the Council, in respect of filing of annual return for the financial year 2024-25 onwards, hereby exempts the registered person whose aggregate turnover in any financial year is up to two crore rupees, from filing annual return that said financial year.”
What is the impact of this development on small taxpayers?
Parag Mehta, indirect tax partner, N. A. Shah Associates LLP, says that as per the GST provisions, any assessee having a turnover of up to Rs 5 crore has to file an annual return by a specified date.
Mehta says that periodically the government had been relaxing the criteria and giving exemption to small tax payers having turnover up to Rs 2 crore from filing this annual return.
Mehta says: “The exemption from filing annual return for FY 2024-25 will definitely help small taxpayers from the rigours of additional compliances which also involve additional cost. However, on the other side, filing of annual return gave an opportunity to the taxpayers to rectify/make payments for any defaults /errors made by them during the monthly/quarterly compliance.”
Change in GST annual return form for FY 2024-25
According to Bhogavalli Mallikarjuna Gupta, Associate Director - GST, RSM India, the recent introduction of Table 6A1 in GSTR-9 marks a significant step forward in improving clarity and transparency.
Gupta says that this new table is a great way to fill in the gaps from past data about input tax credit (ITC) claims for previous financial years, which often resulted in notices being sent out. With Table 6A1, taxpayers can now present a more accurate and reconciled view of their ITC claims, aiding both the assessee and the tax officer during desk reviews.
Gupta further says that this not only minimizes the chances of scrutiny or notices but also helps reduce litigation costs in terms of both time and money. However, to fully benefit from this development, taxpayers must ensure their books of accounts and working papers are well-maintained and accurate.
Gupta says: “The department is likely to compare the figures in Table 12( reversal of ITC) and 13(for availing ITC) of the previous year return with those reported in the current year Table 6A1 for consistency and verification.”
[The Economic Times]
