GST reforms: 16 lakh small businesses may get annual return option, easier e-commerce selling

More than 16 lakh small businesses that sell directly to consumers could soon file only one GST return annually with the GST Council’s in-principle nod to a simplified compliance scheme for taxpayers with turnover of up to Rs 5 crore.

Under the proposed framework, small businesses would pay GST every quarter but file a single return each year, reducing compliance requirements. Late fee for delayed filing of returns by small taxpayers has been waived, the general penalty has been rationalised, and the provision in respect of fine for failure to furnish information has been amended.

Mahesh Jaising, leader, indirect tax, Deloitte India, said the measure, along with rationalised penalties and late-fee relief, is expected to substantially reduce compliance costs and administrative burden for small taxpayers.


The GST overhaul is on three counts–frequency of filing, the difficulty of obtaining and maintaining registration, and exposure to notices and penalties for amounts that are trivial. The reforms set a Rs 10,000 threshold for show-cause notices, while also closing existing pending cases below that threshold, providing relief from a large backlog of small-value disputes.

A key change is the simplified registration framework for small e-commerce sellers, allowing eligible businesses to sell across states without having to maintain separate registrations aiding micro, small and medium enterprises participate more easily in the growing e-commerce sector.

“The removal of multiple registration is beneficial for micro enterprises and womenowned enterprises who do business through e-commerce,” said Anil Bhardwaj, secretary general, Federation of Indian MSMEs.