July 12, 2023
Shaik Musrath

Big Update on GSTR-9 Turnover Limits

In a significant development, the Central Board of Indirect Taxes & Customs (CBIC) has introduced a major update to the turnover limits for filing the Annual Return in Form GSTR-9 and the reconciliation statement in Form GSTR-9C. These changes aim to alleviate the compliance burden for small taxpayers. Let's study  the details of this recent update and its implications.

Waiver of Annual Return Filing for Turnover up to ₹2 Crore: 

One of the key announcements made by CBIC is the waiver of the requirement to file the Annual Return in Form GSTR-9 for taxpayers with an annual turnover of up to ₹2 crore. Previously, this form was mandatory for all regular taxpayers, SEZ units, and SEZ developers. This move is expected to provide significant relief to small businesses, reducing their compliance obligations and administrative burdens.

Reconciliation Statement Waiver for Turnover up to ₹5 Crore: 

In addition to the waiver of the Annual Return filing, CBIC has also announced the exemption from filing the reconciliation statement in Form GSTR-9C for taxpayers with an annual turnover of up to ₹5 crore. The reconciliation statement is a detailed document that ensures the reconciliation of the data furnished in the Annual Return with the audited financial statements. By waiving this requirement for small taxpayers, CBIC aims to further simplify the compliance process and reduce the associated costs.

Impact on Small Taxpayers: 

The revised turnover limits for filing GSTR-9 and GSTR-9C will have a significant impact on small businesses and enterprises. By raising the threshold for exemption, CBIC has acknowledged the challenges faced by small taxpayers in meeting the compliance requirements. This change will allow them to focus more on their core operations and allocate resources efficiently, ultimately promoting ease of doing business.

Simplified Compliance Procedures:

The decision to waive the filing of GSTR-9 and GSTR-9C for eligible taxpayers reflects the government's commitment to reducing the compliance burden on small businesses. These measures align with the broader objective of simplifying the Goods and Services Tax (GST) regime and fostering a business-friendly environment. The reduced administrative burden and compliance costs are expected to encourage voluntary compliance among small taxpayers.

Importance of Annual Returns and Reconciliation Statements:

While the waiver of these filings is aimed at reducing the compliance burden, it is crucial for taxpayers to understand the significance of the Annual Return and reconciliation statement. These documents help ensure the accuracy and transparency of the GST reporting system. While small taxpayers may be exempted from filing these forms, they should continue to maintain proper records and adhere to the principles of good accounting practices.


The recent updates introduced by CBIC regarding the turnover limits for filing GSTR-9 and GSTR-9C mark a significant step towards simplifying the GST compliance process for small taxpayers. The decision to raise the exemption limits will provide much-needed relief to small businesses, enabling them to focus on their core activities and reduce administrative burdens. As the government continues to fine-tune the GST framework, it is crucial for taxpayers to stay updated with these changes and ensure compliance with the applicable regulations.


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