New Delhi, Dec. 22 -- The government is considering easing the goods and services tax (GST) compliance burden for small businesses in the Union Budget for the next fiscal, according to two people familiar with the matter, when US tariffs have disproportionately affected such enterprises.

The Centre may allow quarterly GST payments by micro-enterprises, compared to the current practice of monthly tax payments, the people quoted earlier said, speaking on the condition of anonymity. Micro enterprises are businesses with an annual turnover of up to Rs.10 crore.

In case of 'genuine errors' or delayed filings, the micro, small and medium enterprises (MSMEs) may first be issued a warning, and penalties could be waived for the first two such in...