The government is planning an easier set of compliance norms for small businesses with annual turnover of under Rs 20 lakh

Government to easen GST norms for small businesses

The Goods and service tax regime may have been burdensome for small businesses to get acclimatized to  and although the current norm requires traders with an annual turnover of Rs. 20 lakhs and above to register under the GST system, for the businesses to fully exploit the benefits of the new system it is important that everybody from the raw material trader to the vendor registers under the system.

To this effect, the government is planning an easier set of rules to comply with for the convenience of small businesses with an annual turnover of under Rs 20 lakh.

This decision comes after Prime Minister Narendra Modi urged tax officials to help these traders and small businesses to migrate to the GST rule everyone in the production chain might be cumbersome, the government acknowledges these predicaments, “It should be like Saral (the income tax form), which should be a single-page form with only the sales and purchase details to be furnished,” a senior government official, who did not wish to be named, as reported in the Times Of India.

The registration process might be cumbersome along the chain, but the government has duly noted these predicaments, “It should be like Saral (the income tax form), which should be a single-page form with only the sales and purchase details to be furnished,” a senior government official, who did not wish to be named, as reported in the Times Of India.

Meanwhile, the new compliance mechanism is in its infancy and is being worked out by the Central Board of Excise and Customs. Once the conceptualization is done, the compliance rules will then be finalized by the GST Council.

The main idea is to expand the current tax base while ensuring that those registered under GST and who are doing business with non-registered entities have a fair and legitimate database of their business links.

Sources: Times Of India, Deccan Chronicle 

Image source: Deccan Chronicle 

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