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The Revenue Department
has suggested that this annual turnover threshold for registration could be Rs
10 lakh or more. Also, the Centre may come up with a composition scheme up to
gross turnover limit of Rs 50 lakh if the threshold for registration is kept at
Rs 10 lakh.
These suggestions formed part of the Revenue Department's comments to the first
discussion paper on GST released by the States in November last year. India is
looking to introduce dual GST.
In the discussion paper, the States had recommended that an uniform State GST
threshold of gross annual turnover of Rs 10 lakh be adopted for goods and
services. It was also suggested that the threshold for Central GST for goods may
be kept at Rs 1.5 crore and that for services may also be appropriately high.
State recommendation
The States had recommended a higher threshold for Central GST keeping in view
the interest of small traders and small-scale industries and to avoid dual
control. However, the Finance Ministry has pitched for a uniform threshold for
goods and services for CGST and SGST and noted that the problem of dual control
is better addressed through a compounding scheme and administrative
simplification measures for small dealers.
The revenue department has said the measures could be registration by single
agency for SGST and CGST without manual interface, no physical verification of
premises and no pre-deposit of security, simplified return format, electronic
return filing, audit in 1-2 per cent cases based on risk parameters and lenient
penal provisions.
The Centre is also of the view that there may not be any need to have direct
link between compensation package, if decided for, and the threshold for
registration for North-Eastern and Special-category States.
Source:
Hindu Business Line, India, dated
26/01/2010
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