GST Council may consider raising GST registration limit from Rs 40 lakh to Rs 60 lakh

GST registration limitGST registration: Finance Minister Nirmala Sitharaman stated that the GST Council can investigate the request made by lawmakers to increase the sales threshold for Goods and Services Tax (GST) registration; she further stated that most small businesses ought to be included in the GST system.

Sitharaman acknowledged the requests made by lawmakers to establish a national appellate authority for advance ruling, as stipulated in the GST law, during his response to a Rajya Sabha discussion on the Central Goods and Services Tax (Second Amendment) Bill, 2023.

The minister stated that the industry would adore to have the appellate authority for advance ruling, “We recognize the concern of the member.”

In response to suggestions from Parliamentarians about inclusion of petrol and diesel in GST, the minister said, “I wish state governments see the point.”

Read also: GST registration compulsory for interstate supply?

The minister suggested raising the GST registration threshold from ₹40 lakh to ₹60 lakh. “It’s up to the Council to determine, but it’s also true that most small businesses should ideally join in as well,” the minister stated.

Sitharaman clarified that in order to bring the GST appellate tribunal into compliance with the 2021 tribunal reform and a Madras high court ruling, changes to the GST law are currently being proposed.

The minister clarified that the monthly filing of GST returns has increased steadily, reaching 90% compliance now compared to 71% three years ago.

The Rajya Sabha returned the Central GST (Second Amendment) Bill, 2023, which aims to increase the number of applicants for the appointment of judicial members to the tribunal.

Read also: GST Suspension reasons: How to activate the GST Registration suspended

As a result of the amendments, candidates for President and Members must be at least 50 years old to be appointed. Up to a maximum age of 70 years for the President and 67 years for Members, they will serve terms of office.

The law passed in 1931 with the same name is being replaced by the Provisional Collection of Taxes Bill, 2023, which was also returned by the Rajya Sabha. With the passage of this Bill, the government will not have to wait for the Finance Bills to pass in order to implement the changes to excise and customs duties that were proposed the following day.

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