GST Notification No. 15/2025 – Annual Return Exemption for Small Taxpayers

Issued by: Central Board of Indirect Taxes and Customs (CBIC)
Date: 17th September 2025
Relevant Law: Section 44 of the Central Goods and Services Tax (CGST) Act, 2017

📝 What Does This Notification Say?

Starting from financial year 2024-25 onwards, if your annual turnover is up to ₹2 crore, you are exempted from filing the GST Annual Return (Form GSTR-9).

👉 Earlier, this exemption was being given year by year. Now, CBIC has made it permanent from FY 2024-25 onwards.

🤔 What is “Turnover” in GST?

In simple terms, turnover = the total value of all sales you make in a year (April to March).

It includes:

• Taxable sales (on which GST is charged)

• Exempted / nil-rated sales

• Export sales (zero-rated)

• Inter-state sales (IGST)

It does not include:

• GST itself (tax collected from customers)

• Inward supplies on which you pay tax under reverse charge

👉 So, when we say “₹2 crore turnover,” we mean the total value of goods and services sold before GST, in a financial year.

✅ Practical Examples

Example 1: Small Shop Owner

Ramesh runs a grocery shop. His sales in FY 2024-25 were ₹1.5 crore.

• Since it is below ₹2 crore, he does not need to file GSTR-9.

• He only files monthly/quarterly GSTR-1 and GSTR-3B.

Example 2: Service Provider

Neha provides consultancy services. Her total turnover in FY 2024-25 is ₹1.95 crore.

• She is exempted from filing GSTR-9.

• She just files her regular monthly/quarterly returns.

Example 3: Medium Business

ABC Traders sells electronics. Their turnover in FY 2024-25 is ₹2.25 crore.

• Since it is above ₹2 crore, they must file GSTR-9.

• They also need to reconcile their books carefully (sometimes GSTR-9C audit applies if turnover exceeds ₹5 crore).

🙋 Common Questions

Q1: Does exemption mean I cannot file GSTR-9 even if I want to?
👉 No, you can file voluntarily if you want. Some businesses prefer filing for transparency and record keeping.

Q2: What if I cross ₹2 crore in future years?
👉 If turnover crosses ₹2 crore in any financial year, you are required to file GSTR-9 for that year.

Q3: Does this change anything for GSTR-1 or GSTR-3B?
👉 No, you still need to file your regular returns. This exemption is only for GSTR-9 (annual return).

📌 Why Is This Important?

• Small taxpayers often find GSTR-9 complicated.

• This exemption reduces compliance burden for lakhs of small businesses.

• Only medium and large businesses (turnover > ₹2 crore) need to file annual return now.

🛠️ Action Points for Businesses

1. Check your turnover at the end of each financial year.

2. If ≤ ₹2 crore → no need to worry about GSTR-9.

3. If > ₹2 crore → prepare reconciliation and file annual return.

4. Keep your sales registers, invoices, and GST returns properly maintained for record purposes even if exempt.

📢 Bold Extract from the Notification

“In respect of filing of annual return for the financial year 2024-25 onwards, the Commissioner hereby exempts the registered person whose aggregate turnover in any financial year is up to two crore rupees, from filing annual return.” – Notification No. 15/2025-Central Tax, dated 17th September 2025.