One GST Return a Year? The Proposed ₹5 Crore Scheme Explained for Small Businesses

Updated: 10 October 2026 · Tax Filing Guru Editorial Team

One GST return a year sounds attractive when you run a shop, manage staff and spend evenings collecting invoices. But does the new proposal mean you can stop your regular GST filings? No: the published announcements describe a concept under discussion, not an available filing option.

The proposed Annual Return Quarterly Payment scheme, or ARQP, deserves attention because it addresses an everyday business concern: the time spent on compliance. Understanding its scope now can help you prepare useful records without making premature changes to your filing calendar.

What has been announced?

At its meeting on 8 October 2026, the GST Council approved in principle a concept note for an optional ARQP scheme. The stated target is taxpayers with aggregate turnover of ₹5 crore or less in the preceding financial year who make supplies exclusively to unregistered persons, described as B2C supplies. See item 17 of the official Council recommendations.

The government's 9 October process-reforms explainer says the concept is for further deliberation and discussion. These sources do not establish an ARQP enrolment window, prescribed return form or commencement date. They should not be used as permission to skip a return that is currently due.

Who should pay attention? Three examples

The following fictional examples apply the broad conditions described in the announcement. They are an initial screening exercise; final eligibility will depend on the rules eventually issued.

The useful question is therefore more precise than “Am I a small business?” Review who you actually supply to, alongside the relevant turnover figure. A familiar customer, a small order or a cash payment is not a substitute for checking the customer's GST registration status.

Annual filing and quarterly payment mean different things

The scheme's name separates the reporting cycle from the payment cycle. An annual return would not, by itself, mean an annual tax payment. Nor would a less frequent return make it sensible to leave bookkeeping until the year ends.

Consider a business using an internal planning assumption of ₹30,000 net tax per quarter. Four such quarters total ₹1.2 lakh. If the owner only sets aside cash when preparing an annual return, the business could face a funding gap earlier in the year. This is a budgeting illustration, not an ARQP tax calculation or a prescribed payment schedule.

Maintain a regular review of sales, purchases, receipts and adjustments. A manageable monthly routine helps you spot an omitted invoice while the transaction is still easy to trace.

How does this differ from QRMP?

The existing Quarterly Return Monthly Payment scheme, or QRMP, lets eligible taxpayers file GSTR-1 and GSTR-3B quarterly while paying tax monthly. The GST portal's QRMP FAQs explain that arrangement. ARQP describes a different proposed combination: annual reporting and quarterly payment. An existing QRMP selection is not evidence of enrolment in ARQP.

What remains to be clarified?

Before making a decision, look for official answers on how to opt in, which forms are required, how quarterly payments are calculated, and how corrections are handled. Businesses would also need clear rules for changes in turnover or customer mix during the year.

There is no basis in the concept announcement for promising a particular tax saving, quoting an enrolment deadline or telling every business below ₹5 crore that it qualifies. Avoid changing software settings or standing instructions solely because a headline mentions annual filing.

Five records to prepare now

1. A turnover working: reconcile the preceding year's figure with the underlying records and have your adviser check the applicable aggregate-turnover basis.
2. A customer classification: identify supplies to registered and unregistered recipients rather than estimating the split from memory.
3. An invoice register: keep sales, purchases, returns and credit notes traceable to their source documents.
4. A payment forecast: set aside cash using your current obligations and actual trading pattern.
5. A compliance calendar: continue tracking the returns and payments that apply today, with a named person responsible for each.

For a wider view of recent developments, read our online-delivery GST proposal explainer. If you want help assessing your business's records, contact Tax Filing Guru with your turnover summary, customer mix and current filing details. That gives the discussion a useful starting point when further ARQP guidance arrives.