Local bizmen, trade bodies happy over GST exemption

Local businessmen and trade bodies are happy over the exemption given by GST council recently increasing the threshold for registration under GST from Rs 20 lakhs to Rs 40 lakhs.

“This is one of the most crucial decisions of the council and would indeed help a large number of taxpayers. It is a big step in the right direction and I am confident that going further, the council may consider increasing it further,” said Sandip Somany, President, FICCI.

The decision regarding raising of the annual turnover limit for composition scheme to Rs1.5 crore from the current Rs 1 crore, coupled with the facility of quarterly payment of tax along with annual return filing, is a major relief for businesses. “This is a major step towards tax simplification and will ensure ease of compliance,” said Somany.

The proactiveness of the council in understanding the concerns of the small service providers and announcing the expansion of the composition scheme to them and those making mixed supplies (goods and services) with a threshold upto to Rs 50 lakh, with a tax rate of 6% will benefit the industry significantly. felt the business body.

The local traders echos this and say that the small businessmen had to worry unnecessarily and their cost of managing the business had increased and the change will help the SME’s of the state, felt many industrialists. The council has also decided to form a 7 Member Group of Ministers to examine the proposal of giving a Composition Scheme to Boost the Residential Segment of the Real Estate Sector.