‘Govt mulls raising GST exemption limit to 25 Lakh’

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AHMEDABAD: In what can result in major relief to small traders and dealers, the Union government is thinking of exempting dealers with turnover up to Rs 25 lakh from Goods and Services Tax (GST). Earlier, traders with turnover of Rs 10 lakh or less had been marked for exemption.

“According to our recent discussion with the states, if we calculate the turnovers of dealers across the country, 60% of them fall under Rs 10 lakh and Rs 25 lakh bracket. If the limit is raised to Rs 25 lakh, 60% of dealers will go out of the tax net,” said Hasmukh Adhia, revenue secretary, government of India.

“Now, it is a big number. However, the tax collected from these traders is just 2% (of total tax collections). Hence, we thought of increasing the limit for exemption application, and most states have agreed. But, the final decision in this regard will be taken by the GST Council,” Adhia added.
Speaking at an awareness programme on GST in Ahmedabad on Saturday, Adhia also promised the business community that GST rate structure will be built keeping in mind that overall taxes on goods and commodities are brought down to benefit consumers. This will be the case for most commodities. “In case of a few commodities, we may have to increase the tax a bit,” he said. The event was organised by Gujarat Chamber of Commerce and Industry(GCCI).

Making it clear that a single GST rate across the country is not feasible at this moment, he said, “There will be multiple GST rates to start with and these rates will be fixed by the council.” The revenue secretary also accepted the suggestion made by GCCI that ‘securities’ should be excluded from the definition of goods, and that electricity, too, should be excluded from the ambit of GST.

Source: http://timesofindia.indiatimes.com/city/ahmedabad/Govt-mulls-raising-GST-exemption-limit-to-25-Lakh/articleshow/54401232.cms

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