A number of small producers could come in the tax net under the proposed Goods and Services Tax (GST) as the draft being examined by states seeks to impose the new levy on units with a minimum annual
A number of small producers could come in the tax net under the proposed Goods and Services Tax (GST) as the draft being examined by states seeks to impose the new levy on units with a minimum annual turnover of Rs 10 lakh.
Presently all taxes have separate threshold levels—Rs 1.5 crore for excise levy, Rs 10 lakh for service tax and individual state limits for value-added tax (VAT), such as Rs 2 lakh in Karnataka and Haryana to Rs 50 lakh in Punjab.
GST will replace all these taxes, with a likely uniform exemption limit of Rs 10 lakh. Small units will be only marginally hurt by a low exemption limit of Rs 10 lakh as they can claim credit for taxes on inputs.
