Stories
GST Council Proposes Major Compliance Relief and Simplifications for Small Businesses
- •The GST Council recommended a simplified registration route for eligible small suppliers selling through e-commerce operators in states without a physical presence.
- •Conditional late-fee relief has been proposed for taxpayers with a turnover of up to 5 crore rupees who file delayed returns within the due month.
- •An optional Annual Return Quarterly Payment scheme was approved in principle for small taxpayers making exclusively business-to-consumer supplies.
- •Recommendations include automated updates to registration details, improved return reconciliation, and new electronic statements for better compliance tracking.
- •Businesses must continue following existing procedures until these proposed changes are officially notified, legally enacted, and updated on the GST portal.
Key Questions Answered
The GST Council has proposed a simplified registration mechanism under Rule 14B, allowing small suppliers selling through e-commerce operators to register in states where they lack a physical presence. Under this proposal, an e-commerce operator's warehouse can be declared as the principal place of business under specified conditions, helping small sellers access national markets without establishing separate physical offices everywhere.
A conditional late-fee waiver has been recommended for taxpayers whose annual turnover in the preceding financial year was up to ₹5 crore. To qualify for this relief, the delayed return under Section 39(1) must be filed by the end of the month in which it was originally due.
The Council has approved in principle an optional Annual Return Quarterly Payment (ARQP) scheme for taxpayers with a turnover of up to ₹5 crore who make exclusively business-to-consumer (B2C) supplies. However, the scheme is currently at the concept stage and is not operational until final implementation details are announced.
