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GST Council Advances Simplified Filing and Registration for Small Businesses
The GST Council has approved plans for some small businesses to file their tax return once a year.
They would still pay their taxes every three months.
The option is for businesses with turnover of up to ₹5 crore that sell only to people who are not registered for GST.
The Council says this could reduce paperwork and filing costs.
It also recommended a simpler way for some small sellers to register when selling goods through online platforms in other states.
Their registration would be automatic if they meet certain conditions.
The Council also recommended that tax notices generally not be issued for amounts below ₹10,000.
Some pending notices and appeals below that amount would be handled as though the minimum had already applied.
The GST Council approved in principle an optional annual return and quarterly tax-payment scheme for eligible small taxpayers.
The scheme would cover businesses with turnover up to ₹5 crore that make supplies exclusively to unregistered persons.
About 16.66 lakh of the 16.85 lakh taxpayers reporting only such supplies have turnover up to ₹5 crore.
Small sellers could register automatically to sell goods through e-commerce platforms in states where they have no physical presence, subject to conditions.
The Council recommended a ₹10,000 minimum threshold for show-cause notices and applying it to certain pending notices and appeals.
- Who
- The GST Council, small taxpayers and small sellers using e-commerce platforms.
- What
- The Council approved in principle an optional annual-return, quarterly-payment scheme and recommended simplified e-commerce registration and a ₹10,000 threshold for show-cause notices.
- Where
- The measures concern GST taxpayers and e-commerce sellers in states and union territories.
- When
- The recommendations were reported on October 8, 2026; the article does not specify when the provisions will take effect.
- Why
- To reduce recurring filing costs for small businesses, make it easier for online sellers to expand across states, and provide relief from small disputed tax amounts.
Key facts
- Eligible turnover
- Up to ₹5 crore in the preceding financial year
- Eligible supplies
- Exclusively supplies to unregistered persons (B2C)
- Proposed filing and payment
- One annual return with tax payments made quarterly
- Taxpayer estimates
- About 16.85 lakh taxpayers report supplies only to unregistered persons; about 16.66 lakh, or 99%, have turnover up to ₹5 crore.
- E-commerce registration condition
- For qualifying small goods suppliers without physical presence in the state or union territory, with intended input tax credit not exceeding ₹2.5 lakh per month, excluding stock transfers between distinct persons
- Notice threshold
- ₹10,000 across CGST, SGST, IGST and cess
- Reported date
- October 8, 2026
Quotes
GST Council explanatory note
An explanatory note accompanying the proposed ARQP scheme.
“This will enable small sellers to expand their business to other States through e-commerce platforms without having to set up a place of business in each State and will give a significant boost to ease of doing business.”
thehindubusinessline.com
“This simplified arrangement may partially benefit that body of taxpayers.”
thehindubusinessline.com
Sources
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