In this work, we study the influence of carrier gas H2 flow rate on the quality of p-type GaN grown and annealed at lower temperatures. It is found that the concentration of H atoms in Mg-doped GaN epilayer can effectively decrease with appropriately reducing the carrier gas H2 flow rate, and a high-quality p-type GaN layer could be obtained at a comparatively low annealing temperature by reducing the carrier gas H2 flow rate. Meanwhile, it is found that the intensity and wavelength of DAP peak are changed as the annealing temperature varies, which shows that the thermal annealing has a remarkable effect not only on the activation of acceptors but also on the compensation donors.