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[F. No. 20/06/09/2019-GST]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
New Delhi, the 15th October, 2020
Notification No. 77/2020 – Central Tax: Seeks to make filing of annual return under section 44 (1) of CGST Act for F.Y. 2019-20 optional for small taxpayers whose aggregate turnover is less than Rs 2 crores and who have not filed the said return before the due date.
Table of Contents
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)]
G.S.R (E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby makes the following amendment in the notification of Government of India in the Ministry of Finance, (Department of Revenue), No. 47/2019 – Central Tax dated the 9th October, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 770(E), dated the 9th October, 2019, namely: -
In the said notification in the opening paragraph, for the words and figures ―financial years 2017-18 and 2018-19‖, the words and figures ―financial years 2017-18, 2018-19 and 2019- 20‖ shall be substituted.
(Pramod Kumar)
Director,
Government of India
Note: The principal notification No. 47/2019 – Central Tax, dated the 9th October, 2019 was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 770(E), dated the 9th October, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 77/2020 – Central Tax
Q1: What is Notification No. 77/2020 – Central Tax about?
Answer:
Notification No. 77/2020 – Central Tax extends the benefit given earlier to small taxpayers by making the filing of annual return (Form GSTR-9) optional for FY 2019–20, provided their aggregate turnover is below ₹2 crore and they have not filed it yet.
Q2: Which earlier notification has been amended by this one?
Answer:
It amends Notification No. 47/2019 – Central Tax, dated 9th October 2019, which had earlier made annual return filing optional for FY 2017–18 and 2018–19.
Now, through this amendment, FY 2019–20 is also included.
Q3: Who is eligible for this relaxation?
Answer:
Any registered person under GST having an aggregate turnover of less than ₹2 crore in FY 2019–20 is eligible.
✅ Applicable to both regular taxpayers and composition taxpayers.
🚫 Not applicable to taxpayers above ₹2 crore turnover.
📎 Register your business with Finodha GST Registration Service.
Q4: Is filing GSTR-9 mandatory for small taxpayers?
Answer:
❌ No.
For taxpayers with turnover below ₹2 crore, filing GSTR-9 (Annual Return) is optional.
However, taxpayers can file it voluntarily to maintain clean compliance records.
Q5: What about GSTR-9C (Reconciliation Statement)?
Answer:
The GSTR-9C (audit form) remains mandatory only for taxpayers with turnover exceeding ₹5 crore for FY 2019–20.
If your turnover is below ₹5 crore, you are not required to get accounts audited or file GSTR-9C.
Q6: What does Section 148 of the CGST Act empower the government to do?
Answer:
Section 148 empowers the Central Government to notify special procedures for certain classes of registered persons, such as:
Relaxed filing timelines,
Optional return filing, or
Simplified compliance processes.
This notification uses that power to simplify compliance for small taxpayers.
Q7: What is Form GSTR-9 and why is it important?
Answer:
Form GSTR-9 is the annual return form under Section 44(1) of the CGST Act. It consolidates:
Outward and inward supplies,
Input tax credit (ITC) claimed,
Tax paid and refund details, and
Adjustments made during the financial year.
It ensures the accuracy of yearly tax data and is crucial for maintaining transparent compliance records.
Q8: What happens if a taxpayer below ₹2 crore already filed GSTR-9?
Answer:
If a taxpayer has already filed the annual return for FY 2019–20, it will be treated as valid and cannot be withdrawn.
Q9: What are the benefits of making GSTR-9 optional for small taxpayers?
Answer:
✅ Reduces compliance burden for micro and small businesses.
✅ Saves cost and time of preparing detailed annual summaries.
✅ Simplifies record management during the pandemic recovery period.
✅ Encourages voluntary compliance without penalties.
Q10: From when is this relaxation applicable?
Answer:
This relaxation is applicable from 15th October 2020, but it covers the Financial Year 2019–20.
Q11: Does this notification affect composition dealers?
Answer:
Yes.
Composition taxpayers with turnover below ₹2 crore also benefit from this relaxation. They are not required to file GSTR-9A (Annual Return for composition taxpayers) for FY 2019–20.
Q12: How can businesses confirm their turnover for eligibility?
Answer:
Businesses can check their aggregate turnover through:
GSTR-1 filings (monthly/quarterly),
GSTR-3B returns, or
GST portal summary reports.
If the turnover is less than ₹2 crore, the relaxation applies automatically.
📘 Need help reconciling turnover? Visit Finodha GST Compliance.
Q13: What happens if a taxpayer misses the due date?
Answer:
If the taxpayer has not filed the annual return before the due date and their turnover is below ₹2 crore, they are not required to file it later due to this notification.
No penalty or late fee applies in such cases.
Q14: Does this notification apply for future financial years?
Answer:
This notification specifically applies to FY 2019–20. However, CBIC has been issuing similar relaxations each year based on turnover limits, likely to continue this policy trend.
Q15: How can Finodha help small taxpayers under this notification?
Answer:
Finodha offers:
✅ Expert consultation on GST annual returns.
✅ Turnover eligibility analysis.
✅ Filing of GSTR-9 and GSTR-9C when required.
✅ Business setup and GST registration assistance.
💡 Start your GST return filing with Finodha today.
🏁 Conclusion
Notification No. 77/2020 – Central Tax is a significant relief measure for India’s small businesses, simplifying GST compliance during the challenging pandemic year.
By making the annual return optional for taxpayers below ₹2 crore, the government has reduced unnecessary paperwork and compliance costs.
💡 Stay compliant without stress!
Consult Finodha GST experts today to check if you qualify for this exemption or need to file voluntarily.
Download PDF: Notification No. 77/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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