Small businesses can avoid GST
Small businesses are not happy about GST, as the compliance is costlier, and it takes more time.
Small businesses are not happy about GST, as the compliance is costlier, and it takes more time.
Brief:
Government may raise the threshold for Micro Small and Medium Enterprises from the current INR 20 lakhs to INR 75 lakhs.
As of now, the threshold for mandatory registration under the GST is INR 20 lakh.
Over 60 lakh assessees will benefit.
Cost of compliance:
After GST, professionals have to file returns 25 times in a year.Before it was twice a year.
Now it takes 12 hours to file the return. Before it took 6 hours.
Now businesses have to constantly reconcile the data. Before tax authorities did it.
Cost of compliance should be less than ₹6,000 per annum for businesses with a turnover of up to INR 1 crore. Businesses should be able to comply on their own without availing any external help.
How will it help small businesses?
It will save time.
It will save money, by not hiring tax professionals.
Avoiding tax authorities is any day a better deal.
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