CBEC plans strategy to bring more businesses in GST net

Posted by Daily Shipping Times on 19-09-2017        Tweet

NEW DELHI: Tax officials are working out strategies to encourage more businesses to register for the Goods and Services Tax (GST) and further increase the taxpayer base.

At present, there are about 90 lakh businesses registered to file returns and pay taxes under the new levy, which kicked in from July 1.

But, the Central Board of Excise and Customs will now also encourage small businesses and dealers, who may be exempt from registering for GST.

“We plan to increase awareness of even small businesses about the benefits of GST and why they should register,” said a senior official, pointing out that in the long run it will be beneficial to them as suppliers would only choose to buy from those businesses from where they can get input tax credit. Further, in some cases tax officials may also verify whether businesses that were paying taxes earlier have registered for GST.

Officials believe that as the new tax system stabilises, more businesses will register under GST, taking the tax base to over one crore in the next one year, if not before.

At present, businesses with an annual turnover of up to Rs.20 lakh (or Rs. 10 lakh in some States) are exempt from registering for GST.

“To enable all traders to take maximum benefit of GST, we should work towards ensuring that all traders, including even relatively smaller traders with a turnover below Rs.20 lakh, should register with the GST system,” he had said, asking officials to further increase the taxpayer base.