Exempts the registered person whose aggregate turnover in the financial year 2020 21 is upto two crore

## Policy Analysis Report: Delhi Goods and Services Tax Act, 2017 Amendment **1. Executive Summary:** This report analyzes a notification issued by the Government of the National Capital Territory of Delhi regarding an amendment to the Delhi Goods and Services Tax (DGST) Act, 2017. Based on the provided text, the notification exempts registered persons with an aggregate turnover of up to two crore rupees in the financial year 2020-21 from filing annual returns for that financial year. This amendment, effective from August 1, 2021, aims to reduce the compliance burden for smaller businesses operating within Delhi. The report details the key provisions of the amendment, its target audience, inferred implementation aspects, and expected outcomes. **2. Introduction:** The purpose of this report is to provide a detailed analysis of a notification concerning an amendment to the Delhi Goods and Services Tax (DGST) Act, 2017, based solely on the provided text. The report aims to inform stakeholders about the implications of this amendment. **3. Policy Overview:** * **Amendment:** This notification is an amendment to the Delhi Goods and Services Tax Act, 2017. * **Core Objective(s):** The core objective, as inferred from the text, is to provide relief to smaller registered businesses by exempting them from the requirement of filing annual returns under the DGST Act, 2017. **4. Background and Rationale:** This amendment likely aims to ease the compliance burden on small businesses struggling to meet the requirements of filing annual returns under the GST framework. The rationale appears to be the reduction of administrative burden and compliance costs for smaller entities, potentially fostering a more favorable business environment within Delhi. The amendment seems designed to streamline processes and reduce complexities for businesses with a turnover of up to two crore rupees. **5. Key Provisions / Changes:** * **Specific Part of the Original Policy Being Changed:** The amendment refers to Section 44 of the Delhi Goods and Services Tax Act, 2017, specifically the first proviso. * **New Rule/Provision:** The new rule exempts registered persons whose aggregate turnover in the financial year 2020-21 is up to two crore rupees from filing annual returns for the said financial year. * **Difference/Effect of the Change:** The change significantly reduces the compliance requirements for a specific segment of registered businesses within Delhi. Previously, these businesses were required to file annual returns. Now, due to this amendment, businesses meeting the specified turnover threshold are no longer obligated to do so. This will result in time and cost savings for the affected businesses. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Registered persons under the Delhi Goods and Services Tax Act, 2017, whose aggregate turnover in the financial year 2020-21 did not exceed two crore rupees. * The Department of Trade and Taxes, Government of NCT of Delhi. * Tax consultants and professionals advising businesses within Delhi. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Commissioner of State Tax, under the Department of Trade and Taxes, Government of NCT of Delhi, is responsible for implementing this notification. * **Timelines or Procedures:** The notification came into force on August 1, 2021. No specific procedures are outlined in the text, but it can be assumed that the Department of Trade and Taxes will likely issue further guidelines or clarifications as needed. The implementation likely involves updating relevant IT systems and informing affected businesses about the exemption. * **Implementation related to the Changes:** The amendment's implementation requires the tax authorities to identify registered persons who meet the turnover criteria and ensure they are not penalized for not filing annual returns for the financial year 2020-21. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this amendment are: * Reduced compliance burden for small and medium-sized businesses in Delhi. * Improved ease of doing business, fostering economic activity. * Potentially freeing up resources within the Department of Trade and Taxes by reducing the volume of annual returns to be processed. * Increased satisfaction among smaller GST-registered businesses. **9. Conclusion:** The amendment to the Delhi Goods and Services Tax Act, 2017, as detailed in this notification, provides significant relief to smaller GST-registered businesses within Delhi. By exempting businesses with a turnover of up to two crore rupees from filing annual returns for the financial year 2020-21, the government aims to reduce the compliance burden and promote a more favorable business environment. This amendment signifies a positive step towards streamlining GST compliance and supporting the growth of smaller businesses in the region.

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