The BJP-led NDA government’s move to provide respite to the small businessmen and startups with finance minister Arun Jaitley announcing some sops for them has been largely hailed by the business community in the city.
While welcoming the decisions, the CAIT said that decision of GST Council to give relaxation to small traders, will certainly take the taxation burden out from a large number of small traders in the country.
CAIT National President B C Bhartia and secretary general Praveen Khandelwal said that increasing the threshold limit from Rs 20 lakh to Rs 40 lakh is a welcome step and it is expected that nearly 10 lakh traders will be out from the clutches of GST with this announcement.
Both Bhartia and Khandelwal also said that raising the Composition Scheme limit from Rs 1 crore to Rs 1.5 crore is a much-awaited decision and about 20 lakhs small businesses will be benefitted as they fall under the bracket of Rs.1 crore to Rs.1.5 crore. It is also appreciated that they will be now required to file only one annual return relieving them from the cumbersome procedure though tax has to be paid quarterly.
Threshold limit for composition scheme for services has been decided at Rs 50 lakh which is fair enough and about 10 lakhs small service providers will be benefitted with it. It is also appreciated that they have put under a tax bracket of 6 percent, which is quite reasonable.
Hemant Gandhi, President, Nag Vidarbha Chamber of Commerce: The amount announced today is very less. We had demanded to make it to Rs 75 lakh. However, during our discussion with the government on an earlier occasion, we had brought it down to Rs 50 lakh. We welcome the government’s decision of increasing the limit from Rs 20 lakh to 40 lakh but it is not satisfactory.
Tejinder Singh Renu: Honorary Secretary, Vidarbha Taxpayers Association:
This amendment by the NDA government is a major relief to small traders, MSMEs, taxpayers by doubling the exemption limit for GST payment and compliance from Rs 20 lakhs per year to Rs 40 lakh.
Since the earlier law, people and establishments providing goods and services worth more than Rs 20 lakh had to get registered and comply with tedious filing requirements.
Another major relief is for those who render services or mixed supply up to Rs 50 lakhs, as now they can come under the composition scheme having a rate of 6 percent.
As per the government’s estimate around 20 lakh, taxpayers will be eligible for a benefit under the new relaxed limit.
We have been demanding a composition scheme for builders too and trust the same is also allowed soon as presently it has been kept on hold.
Sanjay Agrawal, Secretary, NVCC and Executive Member, VTA:
The increase in composition scheme from 1 crore to 1.5 cr is a welcome step. The intention is good however, there are doubts as to how will it serve its purpose.
The hoteliers already have the 5 % limit but the mixed composition of 6 percent may create some problems in future. This should have also been maintained at 5%.
However, the Centre has given the authority to the states to decide the exemption limit for GST either Rs 20 lakh or Rs 40 lakh. Thus, it is very likely that there would be no uniformity and the basic aim of one nation one tax would be lost. It seems the government is desperate to give some respite to the traders and today’s announcement is a step towards it.