Karan Sehgal
PANAJI
The Commissioner of Commercial Taxes, Dipak Bandekar, has said that the State Government is “inclined” towards increasing the threshold limit for exemption from Goods-and-Services-Tax (GST) from Rs 20 lakh to Rs 40 lakh yearly turnover.
If this move is actually implemented, businesses with an annual turnover of Rs 40 lakh and below will be exempt from paying GST. This will be a huge boost to small enterprises, which are often burdened with GST compliance.
Bandekar further said that if the State Government decides to indeed increase the GST exemption limit to Rs 40 lakh, then it will come out with an amendment. The exemption limit will likely get increased from April 1.
Bandekar said, “In Goa, we have around 900 dealers with an annual turnover between Rs 20 lakh and Rs 40 lakh. If GST exemption limit is increased, these dealers will benefit, as they will be exempt from paying GST.”
He continued, “However, the government may choose to bring in reverse charge. This means that if a buyer buys an input from a seller, who is exempt from paying GST because his turnover is less than Rs 40 lakh, then the buyer will have to pay GST on it.”
There are two sides to it then. On one hand, a business with less than Rs 40 lakh yearly turnover will benefit due to GST exemption. But, on the other hand, it may lose a bit of its business because another business may not buy inputs from it thinking that it will have to pay GST.
Recently, Union Finance Minister, Arun Jaitley, had given an option to all the states to increase the GST exemption limit from Rs 20 lakh to Rs 40 lakh for businesses.
It is likely that Goa Government after the Budget Session will come out with an amendment increasing GST exemption limit to Rs 40 lakh.
PROVIDING RELIEF?
It is very possible that Goa Government will increase the GST exemption limit from Rs 20 lakh yearly turnover to Rs 40 lakh
If this happens, businesses with an annual turnover of Rs 40 lakh and below will be exempt from paying GST
This will be a huge boost to small enterprises, which are often burdened with GST compliance
After the Budget Session, it is expected that the government will come out with an amendment increasing GST exemption limit to Rs 40 lakh
