Notification No. 31/2021 – CT GSTR-9 Exemption FY 2020-21

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Notification No. 31/2021 – Central Tax: Seeks to exempt taxpayers having AATO up to Rs. 2 crores from the requirement of furnishing annual return for FY 2020-21.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R......(E).— In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby exempts the registered person whose aggregate turnover in the financial year 2020-21 is upto two crore rupees, from filing annual return for the said financial year.

2. This notification shall come into force from the 1^st day of August, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 31/2021 – Central Tax

Q1: What is Notification No. 31/2021 – Central Tax about?

Answer:
Notification No. 31/2021 – Central Tax, issued on 30th July 2021, exempts registered taxpayers with an Aggregate Annual Turnover (AATO) up to ₹2 crores in FY 2020-21 from filing annual return (GSTR-9). This relaxation aims to reduce compliance burden on small taxpayers.

Q2: Who can claim exemption under this notification?

Answer:
Any registered taxpayer under GST whose aggregate turnover in FY 2020-21 does not exceed ₹2 crores is eligible. They are not required to file the annual return for that year.

Q3: From when is Notification No. 31/2021 effective?

Answer:
The notification came into effect on 1st August 2021, as per the Gazette notificationnotfctn-31-central-tax-english-….

Q4: Is filing GSTR-9C (reconciliation statement) also exempted?

Answer:
This notification specifically exempts GSTR-9 (annual return) for AATO up to ₹2 crores. For GSTR-9C (reconciliation statement), the applicability depends on turnover thresholds as prescribed under Section 44.

Q5: Does this exemption apply every year or only for FY 2020-21?

Answer:
This exemption is specific to FY 2020-21. Each year, the GST Council may recommend similar relaxations based on the taxpayers’ compliance needs.

Q6: What if a taxpayer still wishes to file the annual return voluntarily?

Answer:
Even if exempt, a taxpayer can file GSTR-9 voluntarily to maintain proper compliance records. This may also help in case of future audits or assessments.

Q7: How does this notification benefit small businesses?

Answer:
✅ Reduces compliance burden for small taxpayers
✅ Saves cost of professional filing
✅ Simplifies compliance during the pandemic period
✅ Encourages ease of doing business

Q8: What are the next steps for businesses above ₹2 crores turnover?

Answer:
Businesses with turnover above ₹2 crores must mandatorily file GSTR-9, and those with turnover above ₹5 crores must also file GSTR-9C.