As per the official sources:
- Traders with a turnover of less than ₹ 10 lakh a year are neither required to pay GST nor to take registration for it.
- Those with annual sales between ₹ 10 lakh and ₹ 50 lakh will need to pay tax at a rate lower than standard GST rate.
- However, the concessional tax rate would not be available for traders making inter-State transactions irrespective of their turnover.
- The quantum of concession will be decided by proposed GST Council which will also determine standard GST rate.
- For Northeastern States, the threshold could be ₹ 5 lakh.
- This proposed minimum turnover levels for GST mean two things:
- Thousands of small traders below annual sales of ₹ 10 lakh would go out of the tax net as in many State VAT threshold is ₹ 5 lakh.
- Some of the tiny manufacturing units will come under the tax net given that the Central Excise duty is now payable only for units with ₹ 1.5 crore turnover.
[Source: The Indian Express, New Delhi, dated 9-5-2015]
This is just for your reference. It does not constitute our professional advice or recommendation.
CA Akash Phophalia
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