Finally good news for small and medium traders of Assam as Assam Government has accepted the Rs 20 lakh GST exemption cap.
It was long decided by the GST council, but Assam Government has not taken the formal decision which will give huge relief for the small and medium traders. Earlier the cap was Rs 10, 00,000 and that made the SME sector very unhappy.
The Goods and Services Tax (GST) Council has decided that businesses in the Northeastern and hill states with annual turnover below Rs.10 lakh would be out of the GST net, while the threshold for the exemption in the rest of India would be an annual turnover of Rs.20 lakh.
“For GST, the exemption threshold is fixed at Rs.20 lakh,” Council Chairman and Union Finance Minister Arun Jaitley said at a news conference at the conclusion of the panel’s first meeting here on Friday.
“So those with a turnover of below Rs.20 lakh annually will be exempted from GST. With the north-east States, the exemption threshold is Rs.10 lakh,” Jaitley said. The Constitutional Amendment paving the way for the GST has a provision to accord special status to the Northeastern and hill states.
“A higher threshold of Rs.20 lakh [as against earlier proposed limit of Rs.10 lakh] is also a good news,” Rajeev Dimri, Leader, Indirect Tax, BMR Associates, said in an e-mailed statement. “Many small scale traders and service providers would be saved from undertaking GST compliances and it also reduces a substantial burden for tax authorities to assess small time dealers.”
Mr. Jaitley said the Council had also reached consensus on another contentious issue that of administrative control over indirect tax assesses.