Small businesses with annual turnover up to ₹40 lakh and ₹20 lakh for goods and services, respectively, to get exemption
The GST Council in its meeting next week is also likely to consider a proposal to relax compulsory registration norms for small businesses, which use any e-commerce platforms to sell products. Such a move, once implemented, will help small businesses in big way.
A senior government official told BusinessLine that the proposal is expected to come with certain riders. First, exemption will be available up to aggregate turnover on all-India basis not exceeding the turnover, as prescribed under the law. In other words, small businesses having annual turnover up to ₹40 lakh and ₹20 lakh for goods and services, respectively, (₹20 lakh and ₹10 lakh, respectively, in select States) will get exemption. Second, such businesses will not be required to make any inter-State taxable supply. Additionally, they will be required to declare PAN and principal place of business.
“E-commerce operators will not be required to deduct Tax Collected at Source (TCS) from such suppliers,” the official explained. Further, composition dealers (having turnover up to ₹1.5 crore a year) may also be permitted to make supplies through e-commerce operator. This will also have some conditions such as the concerned composition dealer is not engaged in supply of goods or services which are not leviable to tax and not engaged in inter-State supply.
The Council is also expected to consider another proposal in the interest of small businesses. “Businesses with annual turnover of ₹2 crore may be given an exemption from filing annual returns (GSTR 9 and 9A) for FY22,” the official said. This exemption was given for FY21 as well. For other businesses, the effort would be to notify GSTR9 and GSTR9 C at the earliest. “These forms are likely to be notified with minimal changes to the ones notified for FY21,” he said.