GST Annual Return Exemption for Small Taxpayers (FY 2024-25 Onwards)

The Central Board of Indirect Taxes and Customs (CBIC) has issued a significant notification that provides permanent relief to a large number of taxpayers under the Goods and Services Tax (GST) regime. This measure aims to simplify compliance and reduce the administrative burden on small businesses.

Key Exemption Details

As per Notification No. 15/2025 – Central Tax, dated September 17, 2025, the following key provisions have been made effective from the financial year 2024-25 onwards:

  • Exempted Taxpayers: Registered persons whose aggregate annual turnover is up to ₹2 crore in a financial year are now exempted from filing the GST annual return.
  • Applicable Form: The exemption applies to the annual return filed in Form GSTR-9.
  • Effective Date: This exemption is effective for the financial year 2024-25 and all subsequent financial years, providing a permanent solution rather than a year-by-year waiver.

Rationale and Implications

This decision, based on the recommendations of the GST Council, is a significant step towards streamlining GST procedures. By removing the mandatory annual return for a large segment of the taxpayer base, the government is focusing on a more data-driven approach and promoting ease of doing business.

For taxpayers falling under this exemption, this means:

  • Reduced Compliance Burden: Small businesses no longer need to spend time and resources on the complex process of preparing and filing Form GSTR-9.
  • Focus on Business: This allows them to allocate more time to their core business activities rather than on a yearly compliance requirement.
  • Voluntary Filing Option: It’s important to note that while filing is not mandatory, taxpayers still have the option to file Form GSTR-9 voluntarily if they wish.

GSTR-9C vs. GSTR-9

It’s crucial to understand the distinction between Form GSTR-9 and Form GSTR-9C.

  • Form GSTR-9: This is the annual return for regular taxpayers. The new exemption applies to this form for taxpayers with a turnover up to ₹2 crore.
  • Form GSTR-9C: This is the annual reconciliation statement, which is required for taxpayers with an aggregate annual turnover exceeding ₹5 crore. The filing requirement for this form remains unchanged by the latest notification.

This new exemption is a welcome development that will significantly ease the compliance journey for millions of small taxpayers in India.

CBIC Exempts Small Taxpayers from Filing GST Annual Return for FY 2024-25 Onwards