GST decision most crucial, says Somany

A large number of taxpayers would benefit from the double exemption threshold limit for registration under GST from Rs.20 lakh to Rs.40 lakh, believes the Federation of Indian Chambers of Commerce and Industry (FICCI).

“This is one of the most crucial decisions of the Council and would indeed help a large number of taxpayers,” said Sandip Somany, President, FICCI in applauding the latest GST Council decisions.

“It is a big step in the right direction, and I am confident that going forward the Council may consider increasing it further,” he said.

The decision regarding raising of the annual turnover limit for composition scheme to Rs.1.5 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 expansion of the composition scheme to them and those making mixed supplies (goods and services) with a threshold up to Rs.50 lakh with a tax rate of 6% will benefit the industry significantly.

FICCI had suggested this measure to make the composition scheme available to the service providers also.

All the decisions in the meeting, held 10 January 2019, are aimed to simplify the compliance mechanism for the small businesses and pave the way for bringing stability in GST regime. fiinews.com