GST Council is set to further ease the compliance burden for small businesses at its meeting later this month. With Lok Sabha elections due by May 2019 council will plan to make more simplified process of GST.
The GST Council, chaired by union finance minister Arun Jaitley, will consider raising the sales threshold for compulsory GST registration from ₹20 lakh to anywhere between ₹50 lakh and ₹75 lakh, one person privy to the development said on condition of anonymity. A GST Council meeting is likely to be convened by mid-January to consider the proposal that is based on the experience gained since the tax reform was implemented in July 2017.
Prime Minister Narendra Modi, in an interview to leading news agency on Tuesday, said the central government wanted the threshold to be raised to ₹75 lakh. He added that the centre also proposed to cut the GST rate on under-construction flats from 12% to 5%. The proposals would be placed before the GST Council as soon as a state ministers’ panel gave a report on the subject, he said.