GST Threshold Limit to be 10 Lakhs
THE Empowered Committee of State Finance Ministers on the Goods and Services Tax (GST) met in New Delhi yesterday and it is heard that they decided that the threshold limit for GST should be Rs. 10 lakhs which is the current limit for VAT in many States. The Centre wanted the limit to be enhanced to Rs. 25 lakhs. The Empowered Committee wants the States to be given the legal powers to collect tax from businesses with annual turnover of uptoRs.1.5crore. Those below the turnover threshold of Rs.1.5crore would pay their taxes to States, which would subsequently pass on to the central exchequer. This will avoid dual control at least for the small traders. They also want petroleum, alcohol and tobacco out of the purview of GST.
GST Bill which is likely to be presented in the winter session of Parliament is yet to be given to the Committee. The Bill needs to be passed by two-thirds majority in Parliament and has to be approved by more than half the State legislatures. It needs support of all parties.