Lok Sabha Question No. 3854 (UNSTARRED), answered on 2025-03-24
Subject: GST Compliance Concerns  of MSMEs and Small Taxpayers
Ministry: FINANCE
Asked by: Smt. Poonamben Hematbhai Maadam

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION No. 3854

TO BE ANSWERED ON MONDAY, MARCH 24, 2025/CHAITRA 3, 1947 (SAKA)

## GST COMPLIANCE CONCERNS OF MSMES AND SMALL TAXPAYERS

3854. SMT. POONAMBEN HEMATBHAI MAADAM:

Will the Minister of FINANCE be pleased to state:-

(a) whether the Government has taken any steps to address the compliance concerns of MSMEs and small taxpayers under GST;

(b) if so, the details thereof;

(c) whether the Government has taken any steps to simplify and streamline GST procedures to facilitate trade and commerce in the country; and

(d) if so, the details thereof and the manner in which these steps promote ease of doing business?

## ANSWER

## THE MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  to  (d):  Yes,  Government  on  the  recommendations  of  GST  Council,  has  proactively  taken several measures from time to time to reduce the compliance burden of taxpayers, to simplify the GST and to promote ease of doing business in the country. Some of the major policy measures undertaken/being taken by the Government in this regard are as under:

(i)  The  threshold  limit  of  annual  turnover  for  registration  under  GST  for  entities  engaged  in supply of  goods has been increased to Rs. 40 lakhs (other than some special  category States) effective  from  April  1,  2019,  which  was  initially  Rs.  20  lakhs.  This  ensures  that  no  GST compliance is required by such small units below the above threshold turnover and no GST is required to be paid by such units upto the said threshold turnover.

(ii)  The  threshold  limit of  annual  turnover  for  supply  of  goods  under  composition scheme has been increased to Rs. 1.5 crore (other than some special category States) effective from 1st April 2019, which was initially Rs. 75 lakhs. Such taxpayers under composition scheme are required to file a return on annual basis, thus reducing their compliance burden substantially.

(iii)  A  scheme  of  quarterly  return  filing  and  monthly  payment  (QRMP)  has  been  introduced where small taxpayers with turnover up to Rs. 5 crores have an option to file returns on quarterly basis, instead of monthly return

(iv)  Functionality  for  filing  of  NIL  GST  monthly  return  through  SMS  has  been  created  for benefit of taxpayers.

(v) Refund process has been made completely electronic with the process of filing, processing and sanction of refund done completely electronically.

(vi) To reduce compliance burden on small taxpayers, exemption has been provided from filing annual return to taxpayers having annual Aggregate Turnover upto Rs. 2 crores.

(vii) To facilitate and ease return filing process, an auto-generated return with editing facility is being provided to the taxpayers on the portal based on details of the outward supplies furnished by the taxpayer and their suppliers.

(viii) A new option has been provided to allow the amendment of outward supplies of goods or services for current tax period.

(ix) UPI, Credit Card and IMPS have been provided as additional modes for payment of GST to facilitate taxpayers and to further encourage digital payment.

(x)  To  facilitate  small  taxpayers  in  making  supply  of  goods  through  e-commerce  operators (ECOs), the requirement of mandatory registration for intra-state supply of goods through ECOs has been waived off with effect from 01.10.2023 subject to fulfillment of certain conditions.

(xi) Retrospective amendment w.e.f. 01.07.2017 has been made to increase the time limit to avail input tax credit in respect of any invoice or debit note pertaining to the financial years 2017-18, 2018-19, 2019-20 and 2020-21, through any GSTR 3B return filed upto 30.11.2021.

(xii) Section 128A has been inserted in Central Goods and Services Tax Act, 2017, leading to waiver of interest and penalties for demand notices issued under Section 73 of the CGST Act for the fiscal years 2017-18, 2018-19 and 2019-20, in cases where the taxpayer pays the full amount of tax demanded in the notice upto 31.03.2025.

(xiii) Amendment has been made in Section 107 and Section 112 of Central Goods and Services Tax Act, 2017, for reducing the amount of pre-deposit required to be paid for filing of appeals under GST.

(xiv) To reduce burden of late fee on smaller taxpayers, late fee structure has been rationalized, from  June,  2021  tax  period  onwards,  by  aligning  the  upper  cap  of  late  fee  with  tax  liability/ turnover of the taxpayer.

(xv) Decriminalization of certain offences have been carried out in Central Goods and Services Tax Act, 2017.

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