GST may not apply on Firms having annual turnover upto Rs 25 Lakh
Companies having annual turnover up
to Rs. 25 lakh might be exempted from GST as the Centre and states are
likely to settle for this threshold by finalizing the GST laws.
As
draft of the GST laws is likely to get ready by September end. The
Centre and states are attempting to build on a mechanism to avoid dual
scrutiny of assesses by them. The said exemption to all legal entities
shall apply to 1 TIN (Taxpayer Identification Number).
With
the drafting procedure going on, the union government is intending to
recovnene Parliament's monsoon session to clear the constitutional bill,
after which, clearance of bills on Centre's GST (CGST), states' GST and
Integrated GST would follow.
On
states demand for threshold of Rs 10 lakh, the centre has assured full
compensation for 5 years. Besides, firms with annual turnover between Rs
25 lakh and Rs 75 lakh, will have an option pay a flat rate of 1 per
cent or GST rate, which, if opted for, firms will not get input
credits& for which, it is expected that dealers may choose the GST
rate.
The proposed slabs for Tax rate & scrutiny are as follows:
The
union Government has also made a renewed appeal to the opposition
parties to pass the Constitutional amendment through an extended monsoon
session for it is significant that this be cleared at the earliest to
comply to the timeline of 1st April, 2016.
Government eyeing a mid -2016 GST roll out
With the constitutional amendment yet to be cleared, the Union Government has indicated they are reworking the GST rollout deadline to October 1, 2016, and might advance the winter session of Parliament to achieve such goal, the reason being the launch in April, 16 is appearing far-fetched.
The Government has dropped the plans to pass the GST Constitutional amendment though an extended monsoon session & is targeting the implementation by October 1, 2016, if not in April, 2016.
The government is also thinking that the winter session of Parliament could be advanced to immediately after the Bihar polls to pass the key tax reform. After the said polls are over, the government is eyeing on the winter session, where it is expected that the deadline can still be reached through advancement.
Since, ratification of constitution amendment by at least half the states still needs to be done after being passed at parliament, the October 1, 2016 deadline has been on the Government's radar, for it will ensure passage other GST related bills both by Parliament as well as state assemblies.
Though big corporate groups are likely to pressurize the congress party to ensure passage GST in the winter, a string of Holidays may hamper the Government's plas. For this, it is unlikely that the government would be able to call a session before that.
While the exemption limit for VAT
& Service Tax among states (except North-East) is Approximately Rs.
10 Lacs, considering the manufacturing view point, the exemption limit
should have been higher to enable the manufacturers avail such benefits.
The final decision regarding this is yet to be taken by the GST
council, to be constituted within 2 months of constitutional amendment.
Government eyeing a mid -2016 GST roll out
With the constitutional amendment yet to be cleared, the Union Government has indicated they are reworking the GST rollout deadline to October 1, 2016, and might advance the winter session of Parliament to achieve such goal, the reason being the launch in April, 16 is appearing far-fetched.
The Government has dropped the plans to pass the GST Constitutional amendment though an extended monsoon session & is targeting the implementation by October 1, 2016, if not in April, 2016.
The government is also thinking that the winter session of Parliament could be advanced to immediately after the Bihar polls to pass the key tax reform. After the said polls are over, the government is eyeing on the winter session, where it is expected that the deadline can still be reached through advancement.
Since, ratification of constitution amendment by at least half the states still needs to be done after being passed at parliament, the October 1, 2016 deadline has been on the Government's radar, for it will ensure passage other GST related bills both by Parliament as well as state assemblies.
Though big corporate groups are likely to pressurize the congress party to ensure passage GST in the winter, a string of Holidays may hamper the Government's plas. For this, it is unlikely that the government would be able to call a session before that.
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