In a move that can help small businesses, the GST Council has notified steps, including waiving the compulsory registration norms for small businesses with annual turnover up to Rs 40 lakh and Rs 20 lakh for goods and services respectively, granting exemption to taxpayers with aggregate turnover of up to Rs 2 crore in 2021-22 from filing annual returns for the FY.
Other notifications, aimed at small businesses include using e-commerce platforms to sell their products and recommending slashing GST on transport of goods and passengers by ropeway from 18% to 5%. Further, Good Transportation operators by road will have the option of paying GST at 5% without Input Tax Credit (ITC) or paying GST at 12% with ITC.
Businesses with a turnover of up to Rs 1.5 crores, making e-commerce supplies can opt for a compensation scheme, offering a lower tax rate and ease of compliance. Cash ledger balance can also be transferred from one GST registered entity to another.
These steps are a part of the Council’s measures to increase revenue, and plug leakages, including better compliance and tightening enforcement.
