GST Council eases compliance for 16 lakh small businesses with annual returns

India's GST Council has approved a simplified compliance scheme for over 16 lakh small businesses with turnover up to Rs 5 crore, allowing them to pay tax quarterly but file just one annual return. The overhaul also waives late fees and rationalizes penalties. The reforms reduce filing frequency, ease registration burdens, and set a Rs 10,000 threshold for show-cause notices, closing pending small-value disputes. A key change simplifies registration for eligible e-commerce sellers, removing the need for separate state registrations. This measure is expected to cut compliance costs and administrative burdens for small taxpayers. Industry experts say the removal of multiple registrations particularly benefits micro and women-owned enterprises selling through e-commerce platforms.