Concerns of SME Sector
1. Lower threshold to expand SME Coverage under GST a) The threshold limits under GST regime, is fixed at Rs.20 lacs (Rs. 10 lacs in case of specified states except J& K), above, is likely to bring a large chunk of SME Sector under GST because: ·Present exemption limit of 150 lakh under central excise is reduced to 20 lakhs under GST (however there is relief as well because in service tax exemption limit was 10 lacs in most of states the VAT registration threshold was between Rs. 5-10 lacs): Presently, a tax payer having business across different states in India, is entitled to the benefit of threshold limit in each State. Under GST, in such cases, the threshold limit would be available on an all India basis; and Compulsory Registration irrespective of threshold limit for large number of specified tax payers in following circumstances, would result in substantially higher registrations. b) Compared to the threshold exemption scheme presently prevalent w...