PANAJI
Businesses with an annual turnover of less than Rs 20 lakh can now heave a sigh of relief from the Goods and Services Tax (GST)-related complications. They now have an option to cancel their registration from GST system, in case they had earlier registered on it.
Speaking on this issue, Dipak M Bandekar, commissioner of commercial taxes, said, "As per the law, you don't have to register on GST system if your annual turnover is less than Rs 20 lakh. However, some traders with less than Rs 20 lakh annual turnover had registered on the system. The option to cancel registration for such traders on GST system has been enabled now."
This will help both traders as well as tax administration because earlier the number of businesses falling under GST net was inflated because a number of people with less than Rs 20 lakh annual turnover had registered.
At the same time, a business with less than Rs 20 lakhs turnover may still choose to remain registered on the GST network.
Take the example of a trader with Rs 18 lakh annual turnover. If such a trader expects more than Rs 20 lakh turnover the next year, he or she may choose to register on the GST site.
GST, an indirect tax was introduced in India on July 1 and was applicable throughout the country which replaced multiple cascading taxes levied by the central and State governments.
