India Tax Payer - Forum

Goods and Services Tax > Exemption limit at Rs 40 laks

Moderator: Admin

To Share your topic kindly make payment.
Author
  • shankumar
  • Joined:20-09-2017
  • Posts:1
  • Location:Coimbatore
Message

Posted: 24-01-2019

The new year, 2019, started on a positive note for the Tax payers.

As of now, all industries, including Micro, Small and Medium enterprises, have to register for GST and pay as per the existing rules, if they had a turnover of over Rs.20 laks. In the last GST Council meeting, the Council decided that the threshold for entry into GST registration could be raised to Rs.40 laks. However, this has not been notified as yet.

The Finance Minister while making the announcement also indicated that this will be implemented from 1 April 2019 onwards.

The impact of this rule is very clear. Businesses making a turnover of less than Rs.40 laks need not register themselves for GST. This would remove a major chunk of small industries from the tax net and of course, a host of small industries are thankful to the government for the same.

As to tax collections to the government, this could mean little or no impact at all. The GST rule is pretty clear that if a company with out a registration supplies to a registered dealer, then the registered dealer is liable to pay on a reverse charge mechanism. With majority of the small industries supplying to large registered dealers, there may not be a reduction in taxation per se, on the products.

But it does save the small enterprises the rigours of sticking to GST rules and laws and a huge amount of time and money for them as well.

All said and done, this is a welcome measure and hope every enterprise would reap the benefits.

Statistics
Total posts 81 | Total topics 62 | Total members 20205 | Our newest member: LATIKA JHA