The GST Council has approved in principle an optional scheme under which businesses with turnover up to ₹5 crore making only B2C supplies could file one GST return annually while paying tax quarterly.
A major compliance relaxation has been proposed for small businesses that sell exclusively to consumers.
Under the in-principle scheme, eligible taxpayers having turnover up to ₹5 crore would have the option of filing one return for the entire year, while continuing to pay GST on a quarterly basis.
Government estimates indicate that around 16.85 lakh active taxpayers presently report only consumer-facing supplies and that an overwhelming majority of them have turnover below ₹5 crore.
Importantly, this scheme has only been approved in principle. The detailed framework and necessary legislative amendments will be placed before the GST Council at a future meeting before implementation. CA Sansaar