New Delhi: In a bid to broaden the tax base and encourage smaller traders to register under the Goods and Services Tax regime, the government is planning an easier set of compliance norms for small businesses with 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, said media reports.
As of now, the threshold limit for traders to compulsorily register under GST is an annual turnover of Rs 20 lakh.
For the new tax regime to benefit the common man, every entity in the production chain- from raw material provider to the final retailer should be registered, many of whose annual turnover is below the threshold. According to a report in TOI, many large companies are already registering the traders under them. Those getting left out are increasing the pressure on the large companies.
The modalities of the compliance rules are being worked out by the CBEC.