Small businesses selling exclusively to unregistered customers could receive a new option to file a single GST return annually and pay tax quarterly. The reported proposal, expected to be considered at the Council’s October 8 meeting, would reduce recurring compliance for qualifying consumer-facing enterprises.
Reports identify an annual turnover ceiling of ₹5 crore for the proposed optional scheme. Its eligibility conditions, return format and transition process remain to be settled in the final recommendations and implementing provisions.
Buy Now: 160+ GST E-Magazine September 2026
The existing Quarterly Return with Monthly Payment scheme, commonly known as QRMP, already offers quarterly GSTR-1 and GSTR-3B filing to eligible taxpayers. However, it retains monthly payment arrangements for the first two months of a quarter. Quarterly filing therefore does not presently mean that all payment obligations arise only once every three months.
The proposed scheme would change both the return frequency and the payment cycle. The reported annual return should also be distinguished from the existing GSTR-9 annual reconciliation framework: the precise form and relationship between the obligations have not been announced.
As an analytical matter, a consumer-only business has fewer customer-side credit dependencies than a supplier serving registered buyers. That could support a simpler reporting cycle, while the administration would still require adequate sales and tax records.
Eligibility would be particularly important for retailers with mixed customers. A business that occasionally issues a B2B invoice may face a different position from one whose supplies are exclusively to unregistered recipients. E-commerce sales and multiple registrations would also require clear rules.
The measure should not be described as a new composition levy unless the final scheme expressly changes tax rates or credit entitlements. A reduced reporting burden and a different taxation method are separate reforms.
Businesses would be able to opt in only after the scheme is legally implemented and the relevant portal facility becomes available.
Read More: Employee Insurance and Business Vehicles May Get Wider GST Credit Eligibility: GST Council Meet
