The Goods and Services Tax is helping to improve the ease of doing business and in that process resulting in gains in Micro, Small and Medium Entrepreneurs. As per the data with GST Council, in the last one year 48 lakh new entrepreneurs got registered with GST. Here, we are talking about top six initiatives for small businesses.
1. Business with a turnover of less than rupee 20 lakh does not have to pay any GST.
2. Companies with turnover of up to rupee one crore can compound their GST with a payment of one per cent tax on the turnover and the file a quarterly return.
3. Aggregate annual turnover limit for eligibility under the composite scheme was increased from rupee 50 lakh to rupees 1.5 crores in 27 states.
4. A GST registered enterprise would be allowed to issue consolidated credit or debit notes in respect of multiple invoices in a financial year.
5. The GST council has made several amendments for the benefit of sectors like handicrafts, textiles, services and many more for the promotion, development, and ease of business of MSMEs.
6. The council has reduced tax brackets for enterprises, producing goods and services in the MSME items, was cut to five per cent from 12 per cent earlier.