This circular provides clarification on the optional filing of annual returns for registered persons whose aggregate turnover does not exceed ₹2 crore in a financial year, in terms of Notification No. 47/2019–Central Tax dated 9 October 2019.

It clarifies that for the financial years 2017–18 and 2018–19, such registered persons are not mandatorily required to file the annual return. If the annual return is not furnished by the due date, it shall be deemed to have been furnished on that date. However, taxpayers who wish to file the annual return may do so voluntarily before the due date.

Composition taxpayers may optionally file FORM GSTR-9A, while other eligible registered persons may optionally file FORM GSTR-9 for the said financial years. After the due date, the GST common portal will not allow filing of these forms for FY 2017–18 and 2018–19.

The circular further clarifies that making annual return filing optional does not restrict the taxpayer’s obligation to pay any tax liability. If, during reconciliation of accounts, any short payment of tax or ineligible input tax credit is identified, the taxpayer may voluntarily discharge such liability at any time by making payment through FORM GST DRC-03, as permitted under section 73 of the CGST Act.