GST Council Approves Simplified Returns and Faceless Tax Administration

The GST Council approved a simplified compliance scheme during its 57th meeting in New Delhi, allowing approximately 16 lakh small businesses with annual turnovers up to Rs 5 crore to file a single GST return annually. Eligible businesses, such as retail shops and small eateries, will continue paying taxes quarterly but will reduce their filing frequency. The scheme, which targets a segment representing less than 1 per cent of total GST liability, is scheduled to take effect on April 1, 2027.

Finance Minister Nirmala Sitharaman also announced plans to introduce a faceless Central Goods and Services Tax (CGST) administration for roughly 2 lakh taxpayers operating across multiple jurisdictions. This system will provide a unified window for audits, appeals, and grievance redressal to improve the ease of doing business. The government will finalize the framework and open it for public consultation before the next budget, with implementation targeted for the 2027-28 financial year.

Additionally, the Council referred the issue of protecting genuine buyers from losing input tax credit due to supplier defaults to a committee of officers. A report on this matter is expected within three months, with implementation also targeted for April 1, 2027.