Will GST relief help small businesses?
New GST threshold:
New GST threshold:
Government announced the new threshold, where small businesses, earning upto INR 40 lakhs are exempt from GST.
It also increased the limit for composition scheme from INR 1crore to 1.5 crores.
Also, service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 per cent.
But, why?
I wrote in last Recap how small businesses are not happy with GST.
They had to file returns many times, which cost money and time.
Nearly 29% of tax payers are not filing tax returns.
Why it matters?
Easier GST will help in starting more businesses. Earlier GST was as complexas the value added tax, it had replaced.
New rules will free up 20 lakh businesses to focus on their growing their businesses.
Delhi-NCR is primarily a service economy. Lower GST rate of 6% will attract more entrepreneurs, who are professionally trained.
Why you should care?
This is the best time to start a business in Delhi NCR. Pick up a category, and experiment. First few years you won’t have to pay the taxes. Or Just pay a small rate of 6% when you cross INR 50 lakhs.