Small online sellers may soon be exempt from GST registration, according to a report, in a move that could expand the reach of small businesses through e-commerce. Currently, all e-commerce retailers, regardless of revenue, must register for GST.
“Representations have come from the industry and trade to bring parity between online and offline sellers on the issue of GST registration, saying that the current norm comes in the way of small businesses reaching a larger customer base. Discussions are on between the central and state governments. The law committee of the GST Council will examine the matter before a decision is taken,” according to the report which quoted a source as saying.
Currently, all online sellers, regardless of turnover, are required to register for GST, whereas offline sellers are only required to register for GST if their total annual sales exceed Rs 40 lakh. If approved, the proposal will bring online and offline sellers on par in terms of GST registration.
Get Daily Updates in Hindi & English
Apart from that, the GST Council, which is expected to meet next month, may consider a proposal to eliminate the 5% slab by shifting some mass-market goods to the 3% category and the rest to the 8% category, according to reports.
The Council may also choose to reduce the list of exempt items by lowering the percentage of non-food items to 3%.
The number of GST slabs will be reduced from four to three by the government. According to the report, a new 15% median slab could be introduced in place of the current 12% and 18% slabs. According to reports, the 5% rate could be replaced with a new rate of 6% or 7%, but the rate tweaking will be done in such a way that no more than four slabs are created at any given time. The GST system currently has four slabs: 5, 12, 18, and 28. There are 480 items that fall under the 18% tax bracket, accounting for roughly 70% of all GST revenue.
Aside from that, there is a list of items that are exempt from the levy, such as unbranded and unpackaged food. The Council is also said to have given more attention to state input on raising rates on 143 items. Handbags, perfumes/deodorants, chocolates, chewing gums, leather apparel & clothing accessories, and walnuts are among the items on which GST rates may be raised.
India’s highest indirect tax decision-making body is likely to consider imposing a 28% goods and services tax on cryptocurrencies. According to them, the government wants to keep cryptocurrencies on par with lotteries, casinos, racetracks, and betting.
Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, www.babatax.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.
For Collaborating with us-
- Mail us at [email protected]
- Whatsapp us at +91-7024984925