Here we will discuss about the benefits of GST for SME. Goods procured from within the state oroutside the state will be eligible for tax credit. It allow trader to offergoods at a lesser cost.
Service industry can take tax credit of taxon goods purchased and set off against tax payable on services.
Uniformity in taxing system across statewill simplify the tax compliance issues.
Manyambiguities in levied tax on service and goods will be addressed.
SGST Threshold of annual turnover isproposed to be 10 Lac and CGST threshold for annual turnover is proposed at 1.5Cr and is in the interest of SME
The idea behind the GST is to have aliberal and simplified taxing system and encourage to pay taxes. The tax burdenwill be evenly distributed in the supply chain and for regular tax payers itwill be less complicated.
Lot of ground work in each state is stillrequired for which the centre agrees to pay for the costs. It is unlikely to beintroduced in this session.
Contributor – Vineet